Universal Registration Document 2019

49 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Consolidated financial statements 2 Inventory statement at close: (in thousands of euros) Raw materials Tools and other procure- ments Work in progress Finished and intermediary products Goods TOTAL GROSS VALUES AT DECEMBER 31, 2018 61,469 20,110 174,403 127,249 9,011 392,238 Scope changes (6,228) (2,090) (10,605) (4,573) 0 (23,496) - of which increases 0 0 0 0 0 0 - of which decreases (6,228) (2,090) (10,605) (4,573) 0 (23,496) Exchange rate differences 293 95 957 1,247 66 2,658 Changes in inventory 1,959 (2,976) 1,434 (10,297) (620) (10,500) Other changes (198) (1,263) 198 214 (234) (1,277) GROSS VALUES AT DECEMBER 31, 2019 57,295 13,876 166,387 113,840 8,223 359,623 IMPAIRMENT AT DECEMBER 31, 2018 9,760 2,431 7,339 19,637 2,066 41,233 Scope changes (400) (127) (1,209) (326) 0 (2,062) - of which increases 0 0 0 0 0 0 - of which decreases (400) (127) (1,209) (326) 0 (2,062) Provisions for amortization and depreciation 3,714 1,194 4,359 5,986 71 15,324 Reversal of provisions for amortization and depreciation (3,255) (2,132) (5,333) (6,405) (1,227) (18,352) Exchange rate differences 70 9 46 334 37 496 Other changes 992 0 (84) 437 0 1,345 IMPAIRMENT AT DECEMBER 31, 2019 10,881 1,375 5,118 19,663 947 37,984 NET VALUES AT DECEMBER 31, 2019 46,414 12,501 161,269 94,177 7,276 321,639 The amounts shown in scope changes are the result of the sale of INDRAERO SIREN and LISI AEROSPACE Creuzet Maroc. The sale of the Saint-Florent-sur-Cher site impacted the change in net inventories by €-5.8 million. The discounting of the goodwill of LISI AUTOMOTIVE Hi-Vol Inc. over the period resulted in an inventory adjustment of €-1.3 million. 3.4.2.2 - Trade and other receivables Trade receivables, loans and advances are recorded to the balance sheet at their nominal value. In the event of risk of non-recovery, impairment is fixed on a case-by-case basis using the probable collection flows; this risk takes the age of the transaction into consideration. Trade and other receivables are valued at their amortized cost in accordance with the provisions of IFRS 9. The Group uses the simplified IFRS 9 depreciation approach: it uses the information on overdue accounts to determine whether there have been major increases in the credit risk since the initial reporting. According to the analyses carried out, the estimated ECL (Expected Credit Loss) was not significant as of December 31, 2019. Group exposure to credit risk is mainly influenced by individual customer profiles. The Group has a policy of monitoring trade receivables, allowing it to constantly control its third-party risk exposure. The credit risk of write-offs of past due receivables is minimal. At December 31, 2019, the amount of provisions for doubtful debts amounted to €3.1 million, to be compared to total receivables of €237.6million. The amount of permanent losses recognized over the financial year was €97.5 thousand.