GROUPAMA / 2018 Registration document

RISK FACTORS AND RISK MANAGEMENT RISK FACTORS

With regard to VAT, and in addition to the expected change in the Directive on grouping of resources, it should be stressed that the DLF (directorate of tax legislation) recently presented the main points of a proposedVAT group regime, which should be included in the next finance billfor 2020. Potential changes to International 5.1.4.4 Financial Reporting Standards Groupama’sconsolidatedand combinedfinancial statementswere prepared in accordance with the International Financial Reporting Standards and IFRIC interpretations in final form and came into force on 31 December2018, as adopted by the European Union. Two major standards, IFRS 9 on financial instruments replacing IAS 39 and IFRS 17 on insurance contracts replacing IFRS 4, will

come into effect on 1 January 2022. They will have a significant impact on the accounts of insurance groups and financial institutions both in the recognition of assets and liabilities and in the recognitionof incomeand expenses in the income statement. Diversity of legal systems in the 5.1.4.5 countries where the Group operates In recent years, Groupama has expanded internationally into countries where judicial and dispute resolution systems may have a different level of maturity to those of France or the countries of northern and southern Europe. As such, Groupama could find it difficult to take legal action or to enforce judgements in its favour. In such cases, the possible legal ramifications could adversely impact the Group’s activities andnet income.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES