2022 Universal Registration Document

2. Accounting policies

2.1 Basis for preparing the financial statements

Pursuant to Regulation (EC) 1606/2002 of 19 July 2002, VINCI’s consolidated financial statements for the period ended 31 December 2022 have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union at 31 December 2022 ^(*).

The accounting policies used at 31 December 2022 are the same as those used in preparing the consolidated financial statements at 31 December 2021, except for the standards and/or amendments of standards described below, adopted by the European Union and mandatorily applicable as from 1 January 2022.

The Group’s consolidated financial statements are presented in millions of euros, rounded to the nearest million. This may in certain circumstances lead to non-material differences between the sum of the figures and the subtotals that appear in the tables.

The information relating to 2020, presented in the universal registration document filed with the AMF under number D.22-0060 on 28 February 2022, is deemed to be included herein.

The consolidated financial statements were approved by the Board of Directors on 8 February 2023 and will be presented to shareholders for their approval at the Shareholders’ General Meeting on 13 April 2023.

New standards and interpretations applied from 1 January 2022

Standards and interpretations mandatorily applicable from 1 January 2022 had no material impact on VINCI’s consolidated financial statements at 31 December 2022. They include mainly:

• Amendments to IAS 37 – “Onerous Contracts – Cost of Fulfilling a Contract”.

In May 2020, the IASB published amendments to IAS 37 relating to the measurement of onerous contracts. These amendments specify the indirect costs to be taken into account when a n entity defines the cost of fulfilling a contract in order to determine whether it is onerous.

The impact of these amendments is not material for the Group.

• Amendments to IAS 16 – “Proceeds before Intended Use”.

In May 2020, the IASB published amendments to IAS 16 relating to the recognition of proceeds generated by an asset while it is being transferred to site or prepared for its intended use. The amendments state that an entity cannot deduct those proceeds from the cost of the asset. The Group is not concerned by this kind of asset.

As regards the IFRS IC’s conclusion regarding IAS 38, mentioned in Note 2.1 to the consolidated financial statements for the year ended 31 December 2021, VINCI analysed the cost of configuring and customising software used in SaaS (Software as a Service) mode in the first half of 2022. The IFRS IC agenda decision states that in most cases, these costs must be expensed and not capitalised, firstly because the entity does not control the software and secondly because the customisation/configuration activities do not generate any resource controlled by the user and separate from the software.

Applying that decision, configuration and customisation costs related to software used in SaaS mode that were previously capitalised were restated at 1 January 2022, in an immaterial amount, with a balancing adjustment to equity under “Other”.

Standards and interpretations adopted by the IASB but not yet applicable at 31 December 2022

The Group has not applied early the following standards and amendments that could concern the Group and of which application was not mandatory at 1 January 2022:

• Amendments to IAS 1 – “Disclosure of Accounting Policies”;
• Amendments to IAS 1 – “Presentation of Financial Statements – Classification of Liabilities as Current or Non-current”;
• Amendments to IAS 8 – “Definition of Accounting Estimates”;
• Amendments to IAS 12 – “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”;
• IFRS 17 “Insurance Contracts” establishing principles for their recognition, measurement, presentation and disclosure.

A study of the impacts and practical consequences of applying these standards and amendments is under way. These texts do not contain any provisions that are contrary to the Group’s current accounting practices.