AFD - Universal Registration Document 2020

AFD’S ANNUAL PARENT COMPANY FINANCIAL STATEMENTS 7 Accounting principles and assessment methods

These commitments (retirement bonuses and financing of health insurance plans and pensions) undergo actuarial valuations that factor in demographic and financial assumptions. The amount of provisions for commitments is determined using the Projected Unit Credit Method. At each closing, the retirement commitments carried by AFD are remeasured and compared with the value of the insurance policies. As of 31 Ǿ December 2020, the amount of the provision was increased by €8,246K.

Other long-term bene fi ts AFD gives its employees bonuses as long-service benefits. An additional provision was recognised on 31 Ǿ December 2020 in the amount of €120K.

The aggregate impacts on the 2019 and 2020 reporting years are set out in the table below:

Change in the impact on Ǿ income

Change in the impact on Ǿ income

At 31/12/2020

At 31/12/2019

At 31/12/2018

In thousands of euros

Provisions for employee benefits

120,243 118,843

8,365 111,877

6,586 105,291

P Defined benefit plans P Other long-term benefits

8,246

110,597

6,409

104,188

1,401

120

1,281

177

1,104

The changes in commitments over the 2020 financial year are shown in the table below:

Expatriate employees healthcare expenses

Retiree health insurance

Retire- ment lump sum

Retire- ment

Total defined benefit plans

Service award

Grand total

In thousands of euros

Change in the present value of the commitment: Present value of the commitment at 1 Ǿ January

11,797 28,223 119,281 20,207

179,507 1,279 180,786

Financial cost

122 450

0 1,268

212

1,603

14 1,617 189 10,280

Cost of services rendered over the year

140 7,557 1,943

10,091

Cost of past services Reductions/Liquidations

0 0

0 0

0 0

0 0

0 0

0 0

0 0

Services paid

-65 -1,979 -2,043 -1,172

-5,260 10,535

-121 -5,380 49 10,584

Actuarial gains (losses)

1,178

128 7,967 1,262

Other (commitment transfers)

0 -206 -567 -206

-980

-11

-991

Present value of the commitment at 31/12/2020 13,482 26,305 133,464 22,245

195,497 1,399 196,895

Change in the fair value of retirement plan assets: Fair value of assets at 1 Ǿ January

37,073

37,073

37,073

Expected return on assets

0

0

0

Services paid

-1,979

-1,979

-1,979

Actuarial gains (losses)

-134

-134

-134

Liquidations

0

0

0

Fair value of assets at 31/12/2020 Corridor limits: Actuarial gains (losses) not recognised at 1 Ǿ January

34,960

34,960

34,960

-2,309 6,508 -32,385 -3,650 1,180 3,707 11,928 2,021 -1,178 -262 -7,967 -1,262

-31,836

0 -31,836

Corridor limits at 1 Ǿ January

Actuarial gains (losses) generated over the year Actuarial gains (losses) recognised in profit or loss Actuarial gains (losses) recognised in equity Actuarial gains (losses) not recognised at 31/12/2020

-10,669

-49 -10,718

67 -785 1,392

137

812

49

861

0

0

-3,420 5,460 -38,959 -4,774

-41,693

0 -41,693

190

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2020 UNIVERSAL REGISTRATION DOCUMENT