GROUPAMA / 2018 Registration document

FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS AND NOTES

The following are presented on a particular line of the income statement: net income after taxes from discontinuedbusiness activities until ❯ the divestmentdate; profit or loss after taxes resulting from the divestment and ❯ measurementat fair value less the costs of the sale of the assets and liabilities constituting thediscontinued businesses. 3.6 The Group has chosen to value operating property using the cost method. This property is presented on a line separate from Investment property as assets. The recognition and valuation method is identical to the method described for investment property. Property, plant and equipment other than operating property are initially recorded at acquisition cost, which consists of the purchase price, customs duties, discounts and rebates, direct costs necessary for installationand paymentdiscounts. The depreciation methods reflect the method of economic consumption. An impairment test is conducted once there is an indication of a loss of value. The loss of value is reversibleand correspondsto the surplus between the book value over the realisable value, which is the higherof net fair value ofwithdrawal costs andthe value inuse. Tangible fixed assets Operating receivables and payables, other assets and other liabilities Operating receivablesand other assets are recorded at face value, taking intoaccount any transactioncosts. Operating payables and other liabilities are recorded at the fair value of the considerationreceived in exchange at the origin of the contract, net of transactioncosts. Moreover, non-controlling interests in fully consolidated mutual funds are included in other liabilities. Under IAS 32, a financial instrumentthat gives the holder the right to return it to the issuer in exchange for cash is a financial liability. The change in this liability is recognisedthrough the income statement. 3.7

the effects of the revaluationof derivativesassignedto cash flow ❯ hedges andnet investmentsin currencies pursuant to IAS 21; the effects of the revaluationof financial assets available-for-sale ❯ in accordance with the provisions of IAS 39. These are unrealised capitalgains/losses; the cumulative impact of the gain or loss from shadow ❯ accounting ofavailable-for-sale investment assets; the cumulative impact of the deferred tax gain or loss generated ❯ by the transactions describedabove.

Other reserves 3.9.2 Other reserves consistof the followingitems: retainedearnings; ❯ group consolidation reserves; ❯ other regulated reserves; ❯ the impactof changes in accounting methods; ❯

equity instruments akin to deeply subordinated instruments ❯ (TSS) or perpetual subordinated bonds (TSDI) whose features allow recognition in shareholders’ equity. Compensation for these securities is treated like a dividend on shareholders’ equity. Foreignexchangeadjustments 3.9.3 Foreign exchange adjustments result from the consolidation process owing to the translationof statutoryfinancial statementsof foreign subsidiaries prepared ina currency other thanthe euro. Non-controlling interests 3.9.4 Non-controllinginterests represent the share in the net assets and net income of a fully consolidated Group company. This share represents the interests that are not held directly by the parent company or indirectly through subsidiaries (concerning non-controllinginterests relating to consolidatedmutual funds and the purchase of non-controlling interests, refer to paragraphs 3.7 and 3.11). and charges Reserves for contingenciesand charges are liabilities for which the due date or the amount is uncertain.A reservemust be recognised if the following three conditions are met: the Company has a current legal or implicit obligation that is the ❯ result of a past event; it is probable that an outflow of resources representing ❯ economic benefitswill be necessary todischarge the obligation; it is possible to obtain a reliable estimate of the amount of the ❯ reserve. When the impact of the time value of the money is substantial,the amount of the reserves is discounted to the present value of the expected expenditures,which the Company believes necessary to discharge theobligation. Reserves for contingencies 3.10

7

Cash and cash equivalents

3.8 Cash correspondsto available cash.

Cash equivalents are short-term liquid investments, easily convertible into a known amount of cash and subject to an insignificant risk ofchanges in value.

Shareholders’ equity

3.9

Revaluationreserves 3.9.1 The revaluation reserve contains the differences resulting from the revaluationat fair value of balance sheet items,particularly:

199

REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES