GROUPAMA / 2019 Universal Registration Document

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

A discontinued activity is considered to include any component from which the entity is separated or that is classified as held for sale and is in one of the followingsituations: it constitutesa line of businessor a major, separategeographical ● area; or it is part of a single, coordinatedplan for divestmentof a line of ● businessor a major,separategeographical area; or it is a subsidiaryacquiredexclusivelyin orderto be sold. ● The following are presented on a particular line of the income statement: net income after taxes from discontinued businesses until the ● transfer date; 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 the discontinued businesses. Operating activities property 3.6.1 The Group has chosen to value directly owned operating property using the cost method. This property is presented on a line separate from Investment property as assets. The recognitionand valuation method is identical to the method described for investmentproperty. Assets associatedwith the right of use of leased operatingproperty are initiallyrecognisedat their costconsisting ofthe initial amountof the rent liability, advance payments made to the lessor net of any benefits received from the lessor, the initial direct costs incurredby the lessee in entering into the lease, and the estimated costs of dismantlingor restoringthe leased property. The right of use is amortisedon a straight-linebasis over the term of the lease. The term of the lease is the non-cancellableperiod of each lease plus the periods covered by options to renew the lease reasonably certain to be exercisedand options to terminatereasonablycertain not to be exercised bythe lessee. The Group has chosen to apply the optional treatmentprovidedfor in IFRS 16 for leases with a term of less than 12 months and for leases on low-value assets by recognising the rents from these assets as expenses in the income statement. Other property, plant and equipment 3.6.2 Directly owned property,plant and equipmentother than operating property are initially recognisedat acquisition cost, which consists of the purchase price, customs duties, discounts and rebates, direct costs necessary for installation, andpaymentdiscounts. The depreciation methods reflect the method of economic consumption. Tangible fixed assets 3.6

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 of withdrawalcosts and thevalue in use. The method of recognition and valuation of rights of use of other property, plant and equipment held by the lessee under a lease agreementis identical to the method set out for the rights of use of operatingproperty. and payables, other assets and other liabilities Operatingreceivablesand other assets are recordedat face value, taking into accountany transactioncosts. Operatingpayablesand other liabilitiesare recordedat the fair value of the consideration received in exchange at the origin of the contract, net of transaction costs. 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 exchangefor cash is a financial liability. The change in this liability is recognised through the income statement. Operating receivables 3.7

3.8 Cash corresponds toavailablecash.

Cash and cash equivalents

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

3.9

Group’s equity

Revaluation reserves 3.9.1 The revaluation reserve contains the differences resulting from the revaluationat fair value of balance sheet items, particularly: the effects of the revaluationof derivativesassignedto cash flow ● hedgesand net investments in currencies pursuantto IAS 21; the effects of the revaluationof financial assets available-for-sale ● in accordance with the provisions of IAS 39. These are unrealised capital gains/losses; the cumulative impact of the gain or loss from shadow ● accounting of investment assets available-for-sale; the cumulativeimpact of the deferred tax gain or loss generated ● by the transactions described above.

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Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES