GROUPAMA / 2018 Registration document

FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS AND NOTES

List ofentities included in the scopeof 2.3.2 consolidationand changes The list of entities included in the scope of consolidation of the Group’s financial statements and the changes in this scope are described Note 48to the financialstatements. Uniformity ofaccounting principles 2.3.3 The Groupama Assurances Mutuelles consolidated accounts are presented consistently across the entity formed by the companies included within the scope of consolidation,taking into account the characteristics inherent in consolidationand the financial reporting objectives required for consolidated accounts (predominance of substance overform, elimination of local tax accounting entries). Restatementsunder the principles of consistency are made when they are material. Balance sheet items are translated to euros (functional and presentation currency of the Group’s financial statements) at the official exchange rate on the balance sheet date, with the exception of capital and reserves, excluding income, which are translated at historic rates. The Group share of the resulting unrealised foreign exchange adjustment is recorded under “Unrealised foreign exchange adjustments”, and the remaining balance is included in “Non-controlling interests”. Transactionsin the income statementare translatedat the average rate. The Group share of the differencebetween income translated at the average rate and income translated at the closing rate is recorded under “Unrealised foreign exchange adjustments”, and the remainingbalance is included in“Non-controllinginterests”. Internal transactions between companies 2.3.5 consolidated by Groupama Assurances Mutuelles All transactions within the Group are liminated. When these transactions affect consolidated income, the eliminationof profits and losses as well as capital gains and losses is done at 100% then divided between the interests of the consolidating company and the non-controlling interests in the company having generated the income. When eliminating losses, the Group ensures that the value of the disposed asset is not changed for the long term. Eliminating the impacts of internal transactions involving assets brings them down to their original value when they entered the consolidated balance sheet (consolidatedhistorical cost). Inter-company transactions involving the following must be thereforeeliminated: reciprocalreceivablesand payablesas well as reciprocal income ❯ and expenses; notes receivable and notes payable are offset but, if the ❯ receivable is discounted, the credit facility granted to the Group is substitutedfor the note payable; transactionsaffectingcommitmentsreceivedand given; ❯ inward reinsurance,outward reinsuranceand retrocessions; ❯ Conversionof financialstatementsof 2.3.4 foreign companies

Consolidating company (a) A consolidatingcompany is one that exclusively or jointly controls other companies, regardless of their form, or that has a considerableinfluence over other companies. Controlled entities (b) Controlled entities are fully consolidated. These entities are consolidatedonce they are controlled.An entity is controlledwhen the consolidating company holds power over this entity, is exposed or is entitled to variable returns because of its ties with this entity, and when it has the ability to exercise its power over this entity in order to have an influence on the amount of returns that it obtains. An entity ceases to be fully consolidated once the consolidating company loses control of this entity. Full integrationcomprises: integrating in the consolidatingcompany’saccountsthe items in ❯ the financial statements of the consolidated entities, after any restatements; eliminating transactions and accounts between the fully ❯ consolidated companyand the other consolidated companies; distributing shareholders’ equity and net income among the ❯ interests of the consolidating company and the interests of the holders of minorityinterests. Related companies and joint ventures (c) Investments in associates in which the Group has a significant influenceand investmentsin joint ventures are accountedfor under the equity method. When the consolidatingcompany holds, directly or indirectly, 20% or more of the voting rights in an entity, it is assumed to exert significantcontrol, unless it is otherwisedemonstrated.Conversely, when the consolidating company directly or indirectly owns less than 20% of the voting rights of the entity, it is assumed not to exert a significant influence, unless it can be demonstrated that such influence exists. A joint venture is a partnership in which the parties who exercise joint control over theentity have rights to its net assets. The consolidating company has joint control over a partnership when the decisions concerning the relevant activities of the partnership require the unanimous consent of the parties sharing control. The equity method consists of replacingthe carrying amount of the shares held by the Group, the share of shareholders’ equity converted at year end, including the net income for the fiscal year in accordancewith consolidation rules. Deconsolidation (d) When an entity is in run-off mode (no longer taking new business) and the main aggregates of the balance sheet or the income statement are not significant compared with those of the Group, this entity is deconsolidated. The securities of such entity are then posted on the basis of their equivalent value, under securities held for sale at the time of deconsolidation. Subsequent changes in values are recorded in accordance with the methodology defined for this type of securities.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES