1. Objective and Scope

1.1. Objective of this Operation

Other operating income and expense include a small number of unusual, abnormal or infrequent revenue and expense items of particularly significant
amounts. The entity would present these items separately in its income statement to facilitate understanding of current operating performance and provide
information to the user of the financial statements that is useful for a forecast-earnings approach.

1.2. Scope

All expenses not related to usual business operations and in particular
Other non-recurring income (R48790) and expenses (R48690)

2. Definitions

See Finance Glossary:

• BU
• Transfer Price

3. Tasks description

3.1. I define the Non Recurring.

• Provisions for guarantees of liabilities resulting from disposal of investees or groups of assets (le. through share and asset deals) in prior years
  (M&A post-closing adjustments)
• External costs directly related to the disposal of investees or groups of assets (le through share and asset deals) classified as held-for-sale (IFRS
  5), at any time of the disposal (such as external legal costs, external consultants):
  
  • When the disposal is under way.
  • once the disposal has just been achieved or is over, or once the disposal project has been abandoned.
  • Gains and losses on the sale of real estate not linked to an ongoing activity
  • Gains and losses on the sale of real estate following significant environmental or restructuring costs
  • Expenses incurred as a result of a definitive shutdown (the definitive shutdowns include final shutdown of the plant's production,
    cessation of a commercial or research activity or a service provider) are charged to the BU, posted on the cost center "shutdown costs",
    and allocated in here.
  • Future downsizing costs linked to restructuring or sale of the activity as they are incurred as long as it deals with the costs of downsizing
    forecast.
  • Future demolition costs linked to restructuring or sale of an activity as they are incurred, without time limit, as long as they are
    demolitions that were foreseen.
  • External costs for the acquisition of a subsidiary or a joint operation (cf. M&A costs)
  • Major litigations.
    • Two kinds of litigations are eligible for non-recurring:
      • Litigation triggered by M&A deal
      • Other litigations if they meet the following two conditions:
        • external and directly attributable expenses exceeding 3.5 MEUR
        • specific litigations