Note 25 - Contract assets and liabilities
The table below shows movements in contract assets and liabilities.
| 31 Dec. 2018 |
Recognised in revenue |
Payments received from customers |
Changes in estimates |
Impairment losses |
Assets held for sale(*) |
Other | 31 Dec. 2019 |
||
|---|---|---|---|---|---|---|---|---|---|
| Non-current contract assets | - | - | - | - | - | - | - | - | |
| Current contract assets | 5 | - | - | - | - | (5) | - | - | |
| Total contract assets | 5 | - | - | - | - | (5) | - | - | |
| Non-current contract liabilities | 11 | - | 3 | - | - | - | - | 14 | |
| Current contract liabilities | 90 | (2) | - | - | - | (81) | (1) | 6 | |
| Total contract liabilities | 101 | (2) | 3 | - | - | (81) | (1) | 20 | |
(*) Contract assets and liabilities relating to Lagardère Sports were classified within assets held for sale and associated liabilities at 31 December 2019, following the classification of the disposal group as a discontinued operation in accordance with IFRS 5 (see note 4.3).
Estimating the amount of revenue earned in a given reporting period results in a time lag between the date the services are rendered and the date the company has the right to receive payment from the customer. This difference results in the recognition of contract assets, while conversely, payments received from customers before all or part of the corresponding services have been provided give rise to contract liabilities.
Contract assets and liabilities relate to Lagardère Sports and Entertainment businesses.
Contract assets decreased by €5 million in 2019, due mainly to the classification of Lagardère Sports as a discontinued operation in accordance with IFRS 5. The corresponding contract assets were classified within assets held for sale.
Contract liabilities decreased by €81 million to €20 million at end-2019, reflecting:
- €81 million in Lagardère Sports contract liabilities classified within assets held for sale and associated liabilities;
- €3 million in payments received from customers for which the related performance obligations have not yet been satisfied, mainly in Other Activities;
- €2 million representing services provided to customers in 2019 for which revenue was recognised against a reduction in contract liabilities, essentially in Other Activities.