Groupama // Universal Registration Document 2022

7

FINANCIAL STATEMENTS Combined financial statements and notes

3.7 Operating receivables and payables, other assets and other liabilities Operating receivables and other assets are recorded at face value, taking into account any transaction costs. Operating payables and other liabilities are recorded at the fair value of the consideration received in exchange at the origin of the contract, net of transaction costs. Moreover, non ‑ controlling interests in fully consolidated mutual funds are included in other liabilities. Under IAS 32, a financial instrument that gives the holder the right to return it to the issuer in exchange for cash is a financial liability. The change in this liability is recognised through the income statement. discounts and rebates, direct costs necessary for installation and payment discounts. The depreciation methods reflect the method of economic consumption. An impairment test is conducted once there is an indication of a loss of value. The loss of value is reversible and corresponds to the surplus between the book value over the realisable value, which is the higher of net fair value of withdrawal costs and the value in use. The recognition and valuation method for user rights on other property, plant, and equipment owned by the lessee under a lease is identical to the method described for user rights on investment property.

3.6 3.6.1 The following are presented on a particular line of the income statement: 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 exclusively in order to be sold. ❯ net income after taxes from discontinued businesses 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 businesses. ❯ 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. The recognition and valuation method is identical to the method described for investment property. 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. Tangible fixed assets Operating property

Cash and cash equivalents

3.8

Cash corresponds to available cash. Cash equivalents are short ‑ term liquid investments, easily convertible into a known amount of cash and subject to an insignificant risk of changes in value.

Group’s IFRS equity

3.9 (a)

Revaluation reserves The revaluation reserve contains the differences resulting from the revaluation at fair value of balance sheet items, particularly: the effects of the revaluation of derivatives assigned to cash flow hedges and net investments in currencies pursuant to IAS 21; ❯ the effects of the revaluation of financial assets available for sale in accordance with the provisions of IAS 39. These are unrealised capital gains/losses; ❯ the cumulative impact of the gain or loss from shadow accounting of available ‑ for ‑ sale investment assets; ❯

3.6.2 Other property, plant and equipment Directly ‑ owned property, plant and equipment other than operating property are initially recorded at acquisition cost, which consists of the purchase price, customs duties,

193

Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES