Half-Year Report 2021

2 Basis of preparation and changes to the group’s accounting policies

Basis of presentation

The interim condensed consolidated financial statements for the six months ended 30 June 2021 have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the group’s annual financial statements as at 31 December 2020 approved by the Board of Directors on 24 March 2021.

New standards, interpretations and amendments adopted by the group

The accounting policies applied in these interim condensed consolidated financial statements are the same as those applied in the group’s consolidated financial statements as at and for the year ended 31 December 2020 except for changes effective from 1 January 2021.

As at 1 January 2021, the following amendments to the International Financial Reporting Standards (IFRS) entered into force:

• IFRS 9/IAS 39/IFRS 7/IFRS 4/IFRS 16: Interest Rate Benchmark Reform, Phase 2
• IFRS 16: Leases: COVID-19 Related Rent Concessions beyond 30 June 2021 – Amendments to IFRS 16 (early adopted by SoftwareONE in 2021)

These amendments do not have a significant impact on the group. SoftwareONE has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Change in presentation

The comparative information for the six months ended 30 June 2020 presented in these interim financial statements has been amended to reflect the changes in presentation disclosed in the Annual Report 2020 under the heading ‘change in presentation’. In detail, the changes relate to the items below.

The comparative figures for revenue from Software & Cloud were increased by TCHF 18,761 due to a change in presentation of revenue from sale of hardware. Further changes were made in the consolidated statement of cash flows for the presentation of foreign currency effects on changes in net working capital and changes in provisions. The comparative figures were adjusted for change in trade receivables (TCHF 65,526), change in other receivables, prepayments and contract assets (TCHF 19,750), change in trade and other payables (TCHF -54,764), change in accrued expenses and contract liabilities (TCHF -24,649) and foreign currency effects on changes in net working capital (TCHF -5,863) as well as for change in provisions (TCHF -3,302) and other non-cash items (TCHF 3,302).

Accounting estimates and management judgements due to the COVID-19 pandemic

Due to the global consequences of the ongoing COVID-19 pandemic, accounting estimates and management judgements are subject to uncertainty. On the basis of the information available in the reporting period, an analysis of the effects on the accounting of SoftwareONE group was carried out as at 30 June 2021, in particular with respect to expected credit losses on trade receivables and contract assets and intangible assets. SoftwareONE group has determined that no significant effects as a result of COVID-19 had to be recorded in these interim condensed consolidated financial statements. Therefore, management has discontinued the separate monitoring with respect to the ongoing COVID-19 pandemic.

Foreign currency translation

The following exchange rates were used:

Seasonality of operations

The results of SoftwareONE group are subject to significant seasonality effects. Total revenue peaks towards the end of the second quarter as a result of year-end campaigns by Microsoft, our most important software vendor, whose fiscal year ends on 30 June, and towards the end of the fourth quarter of the financial year, driven by the IT budget cycle of many of our customers.