Vetoquinol - Universal Registration Document - 2021

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 76 Vetoquinol Universal Registration Document 2020 Financial report 6 6.5.8 Operating segments – IFRS 8 2020 and 2019 revenues were essentially derived from sales of veterinary products and services. The Group receives no income from patent, know-how, manufactu- ring or trademark licenses. Pursuant to IFRS 15, income from ordinary activities cor- responds to the value of the financial consideration the Group expects to receive in return for providing goods or services to its customers. The Group follows these steps for revenue recognition: • identifying the contract, • identifying the different performance obligations of the contract, • determining the transaction price, • allocating the transaction price, • recognizing revenues when (or as) the entity satisfies a performance obligation. 6.5.8.1 Segment reporting – IFRS 8 Pursuant to IFRS 8, segment information is reported on the basis of internal management data communicated to the Group’s Operations Committee, the Group’s chief operational decision-maker. The Group’s operating seg- ments are geographical segments monitored individually through internal reporting. A geographical segment is a group of assets and opera- tions engaged in providing products or services within a particular economic environment and which is exposed to risks and returns that are different from the risks and returns of other economic environments in which the Group operates. The Group’s worldwide organizational structure is divided into three regions (territories) defined by the location of the Group’s assets and operations: • Europe; • the Americas; • Asia Pacific, distributors and rest of world. The group also communicates and monitors the portion of sales generated by pets and livestock.