UNIVERSAL REGISTRATION DOCUMENT 2023

7 FINANCIAL STATEMENTS Combined financial statements and notes

2.3 2.3.1 The judgements made by management pursuant to the application of IFRS primarily concern: initial measurement and impairment testing of intangible assets, particularly goodwill (paragraphs 3.1.1 and 3.1.2); ❯ estimation of certain fair values on unlisted assets or property assets (paragraphs 3.2.1 and 3.2.2); ❯ estimation of certain fair values on illiquid listed assets (paragraph 3.2.1); ❯ measurement of impairment of financial instruments (paragraph 3.2.2.(b)); ❯ measurement of insurance contract and reinsurance contract assets and liabilities (paragraph 3.12); ❯ recognition of deferred tax in assets (paragraph 3.14); ❯ calculation of provisions for contingent liabilities and particularly valuation of employee benefits (paragraph 3.10). ❯ All figures on the combined balance sheet, combined income statement, statement of profit or loss and gains and losses recognised directly in shareholders’ equity, the statement of changes in shareholders’ equity, cash flow statements and notes to the accounts are stated in millions of euros unless otherwise stated. These figures are rounded. This might generate rounding differences. A company is included in the combination scope once its inclusion, or that of the sub ‑ group it heads, on a stand ‑ alone basis or with other combined businesses, is material in relation to the combined financial statements of all companies included in the scope of combination. In accordance with the provisions of IAS 10 and IAS 28, mutual funds and property investment companies are consolidated either through full consolidation or through the equity method. Control is examined for each mutual fund on a case ‑ by ‑ case basis. Non ‑ controlling interests 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 business investments. Equity ‑ consolidated mutual funds are recognised at fair value and included in “Financial investments” in the balance sheet. (a) Combining company The combining company is responsible for preparing the combined financial statements. Its designation is the subject of a written agreement between all companies of the combination scope, where this combination does not result from any capital tie. (b) Aggregated companies Companies related to each other through a combination tie are consolidated through aggregation of financial statements according to rules identical to those for full consolidation. Consolidation principles Combination and consolidation scope and methods

(c) Controlled entities Controlled entities are fully consolidated. These entities are consolidated once they are controlled. An entity is controlled when the combining company holds 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 combining company loses control of this entity. Full consolidation involves: integrating in the consolidating company’s accounts the items in the financial statements of the consolidated entities, after any restatements; ❯ 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 consolidating company and the interests of the holders of minority interests. ❯ (d) Related companies and joint ventures Investments in associates in which the Group has a significant influence and investments in joint ventures are accounted for under the equity method. When the combining company holds, directly or indirectly, 20% or more of the voting rights in an entity, it is assumed to exert significant control, unless it can be demonstrated otherwise. Conversely, when the combining company directly or indirectly owns less than 20% of the voting rights of the entity, it is assumed not 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 combining 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 method consists of replacing the carrying amount of the shares held by the Group, with the share of shareholders’ equity converted at year end, including the net income for the fiscal year in accordance with consolidation rules. (e) Deconsolidation 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 this type of securities.

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Document d’Enregistrement Universel 2023 GROUPAMA ASSURANCES MUTUELLES