Groupama // Universal Registration Document 2022

7

FINANCIAL STATEMENTS Combined financial statements and notes

3.10.1

Personnel benefits

the cumulative impact of the deferred tax gain or loss generated by the transactions described above. ❯

3.11 Financing debts Financing debts include subordinated liabilities, financing debts represented by securities, and financing debts owed to banking institutions. In the absence of a specific IFRIC interpretation, commitments to purchase non ‑ controlling interests are recorded in financing debt at current fair value (strike price of the option). The cross ‑ entry of these debts is recognised either in goodwill for put options granted before 1 January 2010 or as a reduction in Group’s IFRS equity for put options contracted subsequent to this date. Pension commitments The Group’s companies have different retirement schemes. The schemes are generally financed by contributions paid to insurance companies or other funds, which are administered and valued on the basis of periodic actuarial calculations. The Group has defined ‑ benefit schemes and defined ‑ contribution schemes. A defined ‑ contribution scheme is a retirement scheme under which the Group pays fixed contributions to an independent entity. In this case, the Group is not bound by any legal or implied obligation forcing it to top up the scheme in the event that the assets are not sufficient to pay, to all employees, the benefits due for services rendered during the current fiscal year and previous fiscal years. Pension schemes that are not defined contribution schemes are defined benefit schemes. This is the case, for example, for a scheme that defines the amount of the pension benefit that will be collected by an employee at retirement, which is generally a function of one or more factors, such as age, seniority and salary. The liabilities recorded in the balance sheet for defined ‑ benefit schemes and similar schemes correspond to the discounted value of the obligation linked to the defined ‑ benefit schemes at closing, after deducting the closing fair value of the scheme assets. The actuarial gains and losses resulting from experience ‑ based adjustments and modifications in the actuarial assumptions are recognised directly in equity. The costs of past services are immediately recognised in income, regardless of whether the rights are ultimately acquired in the event of a change of pension scheme. With regard to defined ‑ contribution schemes, the Group pays contributions to retirement insurance schemes and is not bound by any other payment commitment. The contributions are booked as expenses related to personnel benefits when they are due. The contributions paid in advance are recorded as assets to the extent that the advance payment results in a reduction of future payments or a cash reimbursement.

(b) Other reserves Other reserves consist of the following items: retained earnings; ❯ group consolidation reserves; ❯ other regulated reserves; ❯ the impact of changes in accounting methods; ❯

(c) Foreign exchange adjustments Foreign exchange adjustments result from the consolidation process owing to the translation of statutory financial statements of foreign subsidiaries prepared in a currency other than the euro. Non ‑ controlling interests Non ‑ controlling interests represent the share in the net assets and net income of a fully consolidated Group company. This share represents the interests that are not held directly by the parent company or indirectly through subsidiaries (concerning non ‑ controlling interests relating to consolidated mutual funds and the purchase of non ‑ controlling interests, refer to paragraphs 3.7 and 3.11). equity instruments akin to perpetual subordinated bonds (TSDI) whose features allow recognition in Group’s IFRS equity. Remuneration from these securities is treated like a dividend on Group’s IFRS equity. ❯ (d) Reserves for contingencies and charges are liabilities for which the due date or the amount is uncertain. A reserve must be recognised if the following three conditions are met: the Company has a current legal or implicit obligation that is the result of a past event; ❯ it is probable that an outflow of resources representing economic benefits will be necessary to discharge the obligation; ❯ it is possible to obtain a reliable estimate of the amount of the reserve. ❯ When the impact of the time value of the money is substantial, the amount of the reserves is discounted to the present value of the expected expenditures, which the Company believes necessary to discharge the obligation. 3.10 Reserves for contingencies and charges

194

Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES