GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

7 FINANCIAL STATEMENTS Consolidated financial statements and notes

eliminating transactions and accounts between the fully ❯ consolidated company and the other consolidated companies; distributing shareholders’ equity and net income among the ❯ interests of the consolidatingcompany and the interests of the holders of minority interests. Related companies and joint ventures (c) Investments in associates in which the Group has a significant influence and investmentsin joint venturesare accountedfor under the equity method. When the consolidatingcompany holds, directly or indirectly, 20% or more of the voting rights in an entity, it is assumed to exert significant control, unless it is otherwisedemonstrated.Conversely, when the consolidating company directly or indirectly owns less than 20%of the voting rights of the entity, it is assumednot to exert a significant influence, unless it can be demonstrated that such influence exists. A joint venture is a partnership in which the parties who exercise joint control over the entity have rights to its net assets. The consolidating company has joint control over a partnership when the decisions concerning the relevant activities of the partnership require the unanimous consent of the parties sharing control. The equity methodconsistsof replacing the carryingamount of the shares held by the Group, with the share of Group's equity converted at year end, includingthe net income for the fiscal year in accordance with consolidation rules. Deconsolidation (d) When an entity is in run-off mode (no longer taking new business) and the main aggregates of the balance sheet or the income statement are not significant compared with those of the Group, this entity is deconsolidated. The securities of such entity are then posted on the basis of their equivalent value, under securities held for sale at the time of deconsolidation. Subsequent changes in values are recorded in accordance with the methodology defined for thtiyspe of securities. List of entities included in the scope 2.3.2 of consolidation and changes The list of entities included in the scope of consolidation of the Group’s financial statements and the changes in this scope are described Note 50 to the financial statements. Uniformity of accounting principles 2.3.3 The Groupama Assurances Mutuelles consolidated accounts are presented consistentlyacross the entity formed by the companies includedwithin the scope of consolidation,taking into account the characteristics inherent in consolidationand the financial reporting objectives required for consolidated accounts (predominance of substance over form, elimination of locatal x accounting entries). Restatements under the principles of consistency are made when they are material.

The judgementsmade by managementpursuant to the application of IFRS primarily concern: initial valuation and impairment tests performed on intangible ❯ assets, particularly goodwill (paragraphs 3.1.1 and 3.1.2); evaluation of technical reserves (paragraph 3.12); ❯ estimationof certain fair values on unlisted assets or real estate ❯ assets (paragraphs 3.2.1 and 3.2.2); estimation of certain fair values of illiquid listed assets ❯ (paragraphs 3.2.1); recognition in assets of profit sharing (paragraphs 3.12.2.b)and ❯ deferred taxes (paragraph 3.14); calculation of reserves for contingencies and charges and ❯ particularly valuation of employee benefits (paragraph 3.10). Scope and methods of consolidation 2.3.1 A company is included in the consolidation scope once its consolidation, or that of the sub-groupwhich it heads, whether on a stand-alone basis or with other consolidated businesses, is material in relation to the consolidated financial statements of all companies included in the scope of consolidation. In accordance with the provisions of IAS 10 and IAS 28, mutual funds and property investment companies are consolidatedeither through full consolidationor through the equity method. Control is examined for each mutual fund on a case-by-case basis. Non-controllinginterests pertaining to mutual funds subject to full consolidation are measured at fair value and disclosed separately as a special liability item in the balance sheet. Underlying financial assets appear in the Group’s insurance activity investments. Equity-consolidated mutual funds are recognised at fair value and included in “Financial investmentsexcludingunit-linkeditems” in the balance sheet. Consolidating company (a) A consolidatingcompany is one that exclusively or jointly controls other companies, regardless of their form, or that has a considerable influence over other companies. Controlled entities (b) Controlled entities are fully consolidated. These entities are consolidatedonce they are controlled.An entity is controlledwhen the consolidatingcompanyholds power over this entity, is exposed or is entitled to variable returns because of its ties with this entity, and when it has the ability to exercise its power over this entity in order to have an influence on the amount of returns that it obtains. An entity ceases to be fully consolidated once the consolidating company loses control of this entity. Full consolidation involves: integrating in the consolidatingcompany’saccounts the items in ❯ the financial statements of the consolidated entities, after any restatements; Consolidation principles 2.3

157 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES