UNIVERSAL REGISTRATION DOCUMENT 2023

7 FINANCIAL STATEMENTS Combined financial statements and notes

3.6 3.6.1 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 following situations: it constitutes a major, separate line of business or geographical area; or ❯ it is part of a single, coordinated plan for divestment of a line of business or a major, separate geographical area; or ❯ it is a subsidiary acquired solely in order to be sold. ❯ The following are presented on a particular line of the income statement: net income after taxes from discontinued activities until the transfer date; ❯ profit or loss after taxes resulting from the divestment and measurement at fair value less the costs of the sale of the assets and liabilities constituting the discontinued activities. ❯ 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. It is recorded and valued in the same way as investment property valued at cost. Assets related to the right to use leased operating property are initially recognised at cost, comprising the initial amount of the lease liability, any prepayments made to the lessor net of any benefits received from the lessor, the initial direct costs incurred by the lessee in contracting the lease agreement and the estimated costs of dismantling or restoring the leased property. User rights are amortised using the straight ‑ line method over the term of the lease agreement. The lease term equates to the non ‑ cancellable period of each lease plus the periods covered by renewal options where it is reasonably certain these will be exercised, and termination options that the lessee is reasonably certain not to exercise. The estimation of this lease term takes into account the useful life of the significant improvements made and inseparable from the leased property. The Group has chosen to apply the optional treatment stipulated in IFRS 16 for rental agreements of less than 12 months’ duration and contracts involving low ‑ value assets, recognising the rent for these under expenses in the income statement. Property, plant, and equipment Operating property

3.3.3 Embedded derivatives An embedded derivative is a component of a hybrid contract that meets the definition of a derivative. A derivative embedded in a hybrid instrument is not separated to the extent that the host contract is a financial asset within the scope of IFRS 9. However, where the host contract is a financial liability falling within the scope of IFRS 9, the embedded derivative is separated from the host contract and is recognised as a derivative when the following three conditions are met: the economic characteristics and the risks of the embedded derivative are not closely linked to the economic characteristics and risks of the host contract; ❯ a separate instrument with the same terms as the embedded derivative meets the definition of a derivative; ❯ the hybrid instrument is not measured at fair value, with changes in fair value recognised through net income. ❯ (c) Hedging a net investment in foreign currencies Hedge accounting for a net investment in foreign currencies is identical to that of a cash flow hedge. Accumulated gains and losses in equity are recognised in profit or loss on the disposal or loss of control of the foreign subsidiary. When one of these conditions is not met, there is no separation. 3.5 Non ‑ current assets held for sale and discontinued activities A non ‑ current asset (or a group intended to be sold) is considered to be held for sale if its carrying amount will be mainly recovered through a sale transaction rather than through continued use. In order for this to be the case, the asset (or the group intended to be sold) must be available for immediate sale in its current state, and its sale must be highly probable (within the next 12 months). Non ‑ current assets (or a group intended to be sold) classified as held for sale are valued at the lower value between the net carrying amount and the fair value minus transfer costs. Where there is an unrealised capital loss, impairment is recognised in the income statement. In addition, non ‑ current assets cease to be depreciated once they are reclassified as held ‑ for ‑ sale assets. Investments in associates and joint ventures are consolidated using the equity method. At the time of acquisition, the investment is recorded at the acquisition cost and its net carrying amount is subsequently raised or reduced to take into account particularly the income or losses as well as the change in fair value of financial assets in proportion to the investor’s stake. Investments in related companies and joint ventures under the equity method 3.4

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Document d’Enregistrement Universel 2023 GROUPAMA ASSURANCES MUTUELLES