GROUPAMA / 2019 Universal Registration Document

7 FINANCIAL STATEMENTS Annual financial statements and notes

for the other receivables: ● tax combination loans or advancesto daughtercompanies, ● receivables from government bodies and social security ● agencies, loans or advancesto variousother entities, ● other income due. ● In the event of a probable loss, an impairmentis recognisedfor the estimated amount that cannot be recovered.

deductingits own pre-consolidationlosses (equivalentto statement no 2058-A-Bis-SD).On this basis, each member entity calculates an amount of corporate tax at the rate applicable to the head company of the tax consolidation group, i.e., calculated at the normal rate and increased by additional contributions (rate of 34.43%), whatever the actual amount of tax owed by the Group. This amount of corporate tax is paid to Groupama Assurances Mutuelles via tax consolidationcurrent accounts. The tax savings realised by the Group relating to losses are reported at the Groupama AssurancesMutuelles parent company level. They are treatedas an immediategain for the yearand not as a simple cash saving. The savings achieved by the consolidated group, not related to losses,are also retainedby the parent company,with the exception of the tax savings achieved on the neutralisation of intra-group dividends between Groupama Assurances Mutuelles and the regional mutuals. These two items are recorded in the financial statementspursuant to the provisions of notice 2005-G dated 12 October 2005 of the EmergencyCommitteeof the ConseilNationalde la Comptabilité. for direct insuranceoperations(these concern non-life insurance ● operations in co-insurance and co-reinsurance groupings and the operations of the regional mutual of Antilles Guyane not having administrative authorisation to carry out insurance operations): policyholders’ creditaccounts, ● commissions on premiums earned but notwritten, ● advancesor loans fromco-insurers; ● for inwardreinsuranceoperations: ● advancesor loans with theceding offices, ● payables owed for inward transactions from these ceding ● entities; for outward transactions: ● advancesor loans with outward reinsurers, ● payables owed for inward transactions from these outward ● reinsurers; for the other payables: ● advances or loans of a financial and operational nature with ● various otherentities, bank overdrafts, ● taxes and social security owed. ● Accruals – Liabilities 3.3.10 Accrual accounts on the liabilities side correspond mainly to the amortisation of differences on bondredemptionprices. Debts 3.3.9 Payables mainly consist of:

Tangible operating assets 3.3.5 The tangible operatingassets accountmainly includes: fixtures and improvements of premises; ● transportationequipment; ● office equipment; ● furniture; ●

computer hardware; ● other tangible assets. ●

These assets are amortisedusing either the straight-linemethod or the accelerated method over the estimated useful lives, which ranges from2 to 10 years depending on the type of asset. Accruals – Assets 3.3.6 The accruals accounts on the asset side are mainly composed of:

interest accruedand income receivable; ● differenceson bond-redemption prices; ● acquisition costscarried forward tofuture years. ● accruals relatedto FFIs. ●

Reserves (other than underwriting) 3.3.7 Reserves (other than underwriting) are set up in accordance with the provisions of ANC regulation 2014-03 on the French national accountingsystem and concern risks and charges that are clearly specifiedwhen they are applicablebut whose due date or amount cannot be fixedprecisely. This item also includes regulated provisions consisting mainly of accelerated amortisation on acquisition costs of equity securities. Reserves for retirement commitments and similar obligations are measured and recognised in accordance with ANC recommendation2013-02, the applied method being the method based on revised IAS 19 published in June 2011 with the immediate recognitionof actuarial gains and losses on the income statement. Corporate income tax 3.3.8 Groupama Assurances Mutuelles is the parent company of a tax combination group comprising 60 tax-combinedentities. As such and in accordance with the provisions of Article 223 B of the French General Tax Code, Groupama Assurances Mutuelles is solely liable for the tax dueby the consolidated group. In addition, each member of the tax consolidationgroup (including Groupama Assurances Mutuelles as a member of the Group) determines its taxable income as if it were not part of the consolidated group, i.e., it determines its taxable income after

Change in accounting method 3.4 No changein accountingmethod was notedduring this fiscal year.

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Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES