Some client contracts provide for a financial contribution by Sodexo. For example, the Group may participate in financing the purchase of equipment or fixtures on the client site that are necessary to fulfill service obligations, or it may make a financial contribution that will be recovered over the life of the contract. They are recognized in accordance with the application of IFRS 15 “Revenue from contracts with customers” for consideration payable to the customer, as a reduction in the transaction price in the absence of a separate good or service provided by the customer. These contributions are recognized as an asset in“Client investments” and spread as a revenue deduction over the service duration. The amortization is recognized as a reduction to revenues over the life of the contract. The amortization period is in general less than 10 years, in line with the contract duration, but may be amortized over a longer period if the contract duration permits.
In the cash flow statement, changes in the value of these investments are presented as a component of investing cash flows.
Client investments are subject to an impairment test in the same way as other non-current assets directly linked to contracts concluded with clients showing an indication of loss in value (onerous or low profit contracts). The methodology applied for this impairment test is detailed in note 6.4.
| (in million euros) | FISCAL 2022 | FISCAL 2021 |
|---|---|---|
| Client investments as of September 1 | Client investments as of September 1 FISCAL 2022 560 |
Client investments as of September 1 FISCAL 2021 575 |
| Increases during the fiscal year | Increases during the fiscal year FISCAL 2022 133 |
Increases during the fiscal year FISCAL 2021 87 |
| Decreases during the fiscal year | Decreases during the fiscal year FISCAL 2022 (120) |
Decreases during the fiscal year FISCAL 2021 (101) |
| Impairment | Impairment FISCAL 2022 2 |
Impairment FISCAL 2021 (3) |
| Change in scope of consolidation | Change in scope of consolidation FISCAL 2022 — |
Change in scope of consolidation FISCAL 2021 — |
| Currency translation adjustment and other movements | Currency translation adjustment and other movements FISCAL 2022 92 |
Currency translation adjustment and other movements FISCAL 2021 1 |
| CLIENT INVESTMENTS AS OF AUGUST 31 | CLIENT INVESTMENTS AS OF AUGUST 31 FISCAL 2022 667 |
CLIENT INVESTMENTS AS OF AUGUST 31 FISCAL 2021 560 |
| (in million euros) | AUGUST 31, 2022 | AUGUST 31, 2021 |
|---|---|---|
| Trade and other receivables | Trade and other receivables AUGUST 31, 2022 1,482 |
Trade and other receivables AUGUST 31, 2021 1,295 |
|
Trade and other payables(1) |
Trade and other payables(1) AUGUST 31, 2022 (394) |
Trade and other payables(1) AUGUST 31, 2021 (329) |
|
Voucher liabilities(2) |
Voucher liabilities(2) AUGUST 31, 2022 (3,509) |
Voucher liabilities(2) AUGUST 31, 2021 (3,133) |
| Vouchers in circulation | Vouchers in circulation AUGUST 31, 2022 (2,844) |
Vouchers in circulation AUGUST 31, 2021 (2,599) |
| Voucher payables | Voucher payables AUGUST 31, 2022 (489) |
Voucher payables AUGUST 31, 2021 (370) |
| Other(1) | Other(1) AUGUST 31, 2022 (176) |
Other(1) AUGUST 31, 2021 (164) |
| WORKING CAPITAL EXCLUDING RESTRICTED CASH AND FINANCIAL ASSETS OF THE BENEFITS & REWARDS SERVICES ACTIVITY | WORKING CAPITAL EXCLUDING RESTRICTED CASH AND FINANCIAL ASSETS OF THE BENEFITS & REWARDS SERVICES ACTIVITY AUGUST 31, 2022 (2,421) |
WORKING CAPITAL EXCLUDING RESTRICTED CASH AND FINANCIAL ASSETS OF THE BENEFITS & REWARDS SERVICES ACTIVITY AUGUST 31, 2021 (2,166) |
| Restricted cash and financial assets related to the Benefits & Rewards Services activity | Restricted cash and financial assets related to the Benefits & Rewards Services activity AUGUST 31, 2022 1,257 |
Restricted cash and financial assets related to the Benefits & Rewards Services activity AUGUST 31, 2021 1,062 |
| Restricted cash | Restricted cash AUGUST 31, 2022 960 |
Restricted cash AUGUST 31, 2021 773 |
| Market securities > 3 months | Market securities > 3 months AUGUST 31, 2022 297 |
Market securities > 3 months AUGUST 31, 2021 289 |
|
Cash and cash equivalents(1) |
Cash and cash equivalents(1) AUGUST 31, 2022 1,508 |
Cash and cash equivalents(1) AUGUST 31, 2021 1,200 |
| Bank overdrafts | Bank overdrafts AUGUST 31, 2022 (1) |
Bank overdrafts AUGUST 31, 2021 (5) |
| OPERATING CASH ASSETS OF THE BENEFITS & REWARDS SERVICES ACTIVITY | OPERATING CASH ASSETS OF THE BENEFITS & REWARDS SERVICES ACTIVITY AUGUST 31, 2022 2,764 |
OPERATING CASH ASSETS OF THE BENEFITS & REWARDS SERVICES ACTIVITY AUGUST 31, 2021 2,257 |
(1) Including intragroup transactions.
(2) Voucher liabilities are accounted for at fair value as current liabilities, which is the face value of vouchers in circulation and of vouchers back at Sodexo and not yet reimbursed.
