GROUPAMA / 2018 Registration document

FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS AND NOTES

Insurance activity investments 3.2 Investmentsand any impairmentthereon are valued in accordance with IFRS basedon the asset class of the investments. 3.2.1 Equities, bonds, loans and receivables, derivatives and bank accountsare considered financial assets. Classification (a) Financial assets are classified in one of the following four categories: there are twotypes of assets atfair value through income: ❯ investmentsheld for trading, which are investmentsfor which ■ the management intention is to generate income in the short term. If there have been short-term sales in the past, such assetsmay also be classified in this category, financial assets designated as optional (held-for-trading or ■ even fair value option), provided they comply with the following criteria: asset/liabilitymatching to avoidany accounting mismatch, - hybrid instruments including one or more embedded - derivatives, group of financial assets and/or liabilities that are managed - and the incomeof which isvalued at fair value; assets held to maturity include fixed-term investments that the ❯ Company expressly intends, and is able, to hold until maturity. The Group does not use this category, with the exception of certain perfectly backed portfolios that meet the criteria defined above; the category of loans and receivables includes assets with a ❯ defined payment or a payment that can be defined, which are not listedfor trading onan active market; available-for-sale assets (stated at fair value via shareholders’ ❯ equity) include by default all other fixed-term financial investments, equities, loans and receivables that are not included inthe other categories. Reclassifications (b) A financial asset may, under exceptional circumstances, be reclassified outsidethe categoryof investmentsheld for trading. A financial asset classified as available-for-salemay be reclassified outside the assetsavailable-for-sale category, into: the category of investments held to maturity when the intent or ❯ capacity of the Company changes or when the entity no longer has a reliable assessmentof fair value; the category of loans and receivables when the financial asset ❯ meets the definition of loans and receivables on the date of the reclassification and when the entity has the intent and the capacity to hold the financial asset for the foreseeable future or until its maturity. Financial assets

Goodwill, recorded at the initial business combination,the value of which is not material or requires disproportionatevaluationwork in relation to its value, is immediatelyexpensed in the year. An impairment of goodwill recognisedduring a previous fiscal year may not besubsequently writtenback. If the acquirer’s interest in the net fair value of the identifiable assets, liabilities and reserves exceeds the acquisition cost of the Company’s shares, the identification and valuation of the assets, liabilities and reserves and the valuation of the cost of the combination is reassessed. If, after this revaluation, the share acquired remains greater than the acquisition cost, this excess is immediatelyrecognised inincome. If control of an entity is taken over, a sale optionmay be granted to holders of non-controllinginterests. The option to sell results in the Group’s obligation to buy the securities held by the minority at a specified strike price and at a future date (or period of time) if the minority holder exercises its right. This obligation is reflected in the financial statements by a debt valued at the strike price of this discounted right. The offset of this debt, equal to the price of the option (value of the share), is recognised in goodwill for put options granted before 1 January2010 or as a reductionof non-controllinginterestsand/or shareholders’equity for put options contractedsubsequentto this date. 3.1.2 Intangible fixed assets are identifiable assets, controlled by the entity because of past events and from which future economic benefits are expectedfor the entity. They primarily include values in force and investment contracts, customer relations values and network values and brands, determined during business combinations, as well as software acquiredand developed. Amortisable intangible insurance assets (specifically including values in force and investment contracts, the value of customer relationsand the value of the networks)are depreciatedas margins are discharged over the lifetime of the policy portfolios. A recoverability test is performed each year, based on experience and anticipated changes in major assumptions, and may result in impairment. Software acquired and developed has a finite lifetime and is generally amortised on astraight-line basis overthat lifetime. Other intangible assets that do not have a finite lifetime are not Other intangibleassets

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amortised but do routinelyundergo animpairment. Start-up costsare expensed rather thancapitalised.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES