GROUPAMA / 2019 Universal Registration Document

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

Other reserves 3.9.2 Other reservesconsistof the followingitems: retained earnings; ● group consolidation reserves; ● other regulated reserves; ● the impact of changes in accounting methods; ●

forcing it to top up the scheme in the event that the assets are not sufficient to pay, to all employees, the benefits due for services rendered during the current fiscal year and previous fiscal years. Pension schemes that are not defined contribution schemes are defined benefit schemes. This is the case, for example, for a scheme that defines the amount of the pension benefit that will be collected by an employee at retirement, which is generally a function of one or more factors, such as age, seniorityand salary. The liabilities recorded in the balance sheet for defined-benefit schemes and similar schemes correspondto the discountedvalue of the obligation linked to the defined-benefitschemes at closing, after deductingthe closing fair value of the schemeassets. The actuarial gains and losses resulting from experience-based adjustments and modifications in the actuarial assumptions are recognised directly in equity. The costs of past services are immediately recognised in income, regardlessof whether the rights are ultimatelyacquired in the event of a change ofpensionscheme. With regard to defined-contribution schemes, the Group pays contributionsto retirementinsuranceschemesand is not bound by any other payment commitment.The contributionsare booked as expenses related to personnel benefits when they are due. The contributionspaid in advance are recorded as assets to the extent that the advancepaymentresults in a reductionof future payments or a cashreimbursement. Financing debt 3.11 Financing debt includes subordinated liabilities, financing debt represented by securities, and financing debt to banking institutions. In the absence of a specific IFRIC interpretation,commitmentsto purchasenon-controllinginterestsare recorded in financingdebt at current fair value (strike price of the option). The cross-entry of these debts is recognisedeither in goodwill for put options granted before 1 January 2010 or as a reduction in group’s equity for put optionscontracted subsequent to this date. Initial recognition 3.11.1 Financingdebt is recognisedwhen the Groupbecomesparty to the contractual provisions of this debt. The amount of the financing debt is then equal to the fair value, adjusted if necessary for the transaction costs directly chargeable to the acquisition or issue of such debt. Valuation rules 3.11.2 Financing debt is subsequentlyvalued at amortised cost using the effective interest rate method. Derecognition 3.11.3 Financingdebt is derecognisedwhen the obligationspecified in the contract is discharged,cancelledor expires.

equity instrumentsakin to deeply subordinatedinstruments(TSS) ● or perpetual subordinated bonds (TSDI) whose features allow recognitionin group’sequity. Remunerationfrom these securities is treated like a dividendon group’s equity. Foreign exchange adjustments 3.9.3 Foreign exchange adjustments result from the consolidation process owing to the translationof statutoryfinancial statementsof foreign subsidiariespreparedin a 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). Reserves for contingent liabilities 3.10 Reserves for contingenciesand charges are liabilities for which the due date or the amount is uncertain.A reservemust be recognised if the followingthree conditions are met: the Companyhas a current legal or implicit obligationthat is the ● result of a past event; it is probablethat an outflowof resourcesrepresentingeconomic ● benefits will be necessary to dischargethe 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 dischargethe obligation. The Group’s companies have different retirement schemes. The schemes are generally financed by contributionspaid to insurance companies or other funds, which are administeredand valued on the basis of periodic actuarial calculations. The Group has defined-benefit schemes and defined-contribution schemes. A defined-contributionscheme is a retirement scheme under which the Group pays fixed contributionsto an independententity. In this case, the Group is not bound by any legal or implied obligation Personnel benefit 3.10.1 Pension commitments (a)

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Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES