Modèle Word ddr danone

 

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DANONE Consolidated financial statements 2019 61 
Recognition of revenue 
RISK IDENTIFIED 
OUR RESPONSE 
As indicated in Note 6.1 to the consolidated financial 
statements, the Danone Group’s sales are stated net of trade 
discounts and customer rebates (including costs relating to 
trade support and listing agreements or occasional 
promotional actions invoiced by retailers). Revenue 
measurement therefore involves making estimates related to 
such agreements or actions. 
We deemed the valuation of trade discounts and rebates to 
be a key audit matter given (i) the Group’s broad customer 
base across different countries and with varying contractual 
relationships (based on sales volumes, promotional 
agreements or trade practices), (ii) the materiality of trade 
discounts and rebates, and (iii) the complexity of estimating 
these amounts at the year end. 
We assessed the consistency of the revenue recognition methods 
applied by the Danone Group with international financial reporting 
standards (IFRS). 
Given the large number of sales transactions carried out by the 
Group’s various entities, we examined the internal control procedures 
relating to the estimation of trade discounts and rebates as part of the 
revenue recognition process and tested the controls, which we 
determined are key, in the main operating entities. 
We also performed substantive controls to assess: 
• 
whether amounts to be refunded to customers were being 
measured correctly and recognized on the reporting date by 
(i) reconciling the estimates with the contractual data in the 
information systems used to manage trade terms and 
conditions or in the contracts with the relevant customers, 
and (ii) examining the assumptions used, where applicable, 
with regard to actions taken or specific situations and 
customary trade practices; 
• 
whether revenue was being recognized in the appropriate 
period by (i) testing the transactions booked after the 
reporting date to identify any non-accrued discounts and 
rebates and (ii) analysing the change in accruals and their 
breakdown by age.