Groupama // Universal Registration Document 2022

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FINANCIAL STATEMENTS Combined financial statements and notes

3.12.4 (a)

Reinsurance operations

3.14 Taxes Corporate income tax includes all current and deferred taxes. When a tax is payable or receivable and payment is not subject to the execution of future transactions, such tax is classified as current, even if the payment is spread over several fiscal years. It appears as an asset or liability on the balance sheet as applicable. Operations carried out by the Group may have positive or negative tax consequences other than those taken into consideration for calculating the payable tax. The result is tax assets or liabilities classified as deferred. This is particularly the case when, because of completed transactions that are posted in either the individual company statements or only in the combined financial statements as restatements and eliminations of inter ‑ company income or losses, differences will appear in future between the tax income and the accounting income of the Company, or between the tax value and the book value of an asset or liability, for example when transactions performed during a fiscal year are taxable only in the following fiscal year. These differences are classified as timing differences. All deferred tax liabilities must be recognised; however, deferred tax assets are only recognised if it is likely that taxable income (against which these deductible timing differences can be charged) will be available. All deferred tax liabilities are recognised. Deferred tax assets are recognised when their recovery is considered as “more probable than improbable”, i.e. , if it is likely that sufficient taxable income will be available in the future to offset the deductible timing differences. In general, a 3 ‑ year horizon is considered to be a reasonable period to assess whether the entity can recover the capitalised deferred tax. However, an impairment charge is booked against the deferred tax assets if their recoverability appears doubtful. Deferred tax assets and liabilities are computed on the basis of tax rates (and tax regulations) adopted as at the balance sheet date. Deferred tax assets and liabilities are not discounted to present value. change to the lease term; ❯ change to the view that the exercising of a purchase option is, or is not, reasonably certain; ❯ fresh estimation of residual value guarantees; ❯ revision to rates or indices on which rents are based when a rent adjustment takes place. ❯ Rental debts are subsequently valued at amortised cost using the effective interest rate method. They are re ‑ assessed in the following situations:

(b) Inward reinsurance Inward reinsurance is booked treaty by treaty without difference on the basis of an assessment of the business accepted. These operations are classified according to the same rules as those described for insurance policies or financial contracts in paragraph 3.12.1. In the absence of sufficient information from the outward reinsurer, estimates are made. An asset deposit is recorded for the amount of the counterparty given to the ceding and retroceding companies. Securities used as hedges are recorded in the statement of commitments given and received. Outward reinsurance Outward reinsurance is recognised in accordance with the terms of the various treaties and according to the same rules as described in note 3.12.1 on insurance policies and financial contracts. A liabilities deposit is recorded for the amount of the corresponding asset received from outward reinsurers and retrocessionaires. Securities from reinsurers (outward reinsurers and retrocessionaires) remitted as collateral are recorded in the statement of commitments given and received. IFRS 16 lease liabilities On the contract’s effective date, the debt representing the obligation to pay rent is recognised at an amount equal to the discounted value of the rent over the term of the lease contract. The amounts included in respect of rents in evaluating this initial liability are: fixed rent; ❯ variable rent, if based on a rate or index, using the rate or index value on the contract’s effective date; ❯ payments to be made by the lessee under a residual value guarantee; ❯ termination or non ‑ renewal penalties; and ❯ the cost of exercising a purchase option if it is reasonably certain to be exercised. ❯ 3.13 Rents are discounted at the interest rate implicit in the lease if such is easily determined, otherwise at the lessee’s marginal borrowing rate.

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Universal Registration Document 2022 - GROUPAMA ASSURANCES MUTUELLES