Groupe Renault - 2019 Universal Registration Document

04

CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Accounting policies and scope of consolidation

4.2.6.2

APPROVAL OF THE FINANCIAL STATEMENTS NOTE 1 The Groupe Renault’s consolidated financial statements for 2019 were examined at the Board of Directors’ Meeting of February 13, 2020 and will be submitted for approval by the shareholders at the General Shareholders’ Meeting.

ACCOUNTING POLICIES NOTE 2

In application of European regulations, the Groupe Renault’s consolidated financial statements for 2019 are prepared under IFRS (International Financial Reporting Standards) as issued by the lASB (International Accounting Standards Board) at December 31, 2019 and adopted by the European Union at the year-end. Changes in accounting policies 2 – A – Changes in accounting policies in 2019 A1 The Groupe Renault applies the accounting standards and amendments that have been published in the Official Journal of the European Union and are mandatory from January 1, 2019.

NEW AMENDMENTS THAT BECAME MANDATORY ON JANUARY 1, 2019 IFRS 16 Leases IFRIC 23

Uncertainty over income tax treatments

IAS 28 amendment IFRS 9 amendment IAS 19 amendment

Long-term interests in associates and joint-ventures Prepayment features with negative compensation Plan amendment, curtailment or settlement

Annual improvements to IFRS, 2015-2017 cycle

Various measures concerning: Amendments to IFRS 3 “Business Combinations” and IFRS 11 “Joint Arrangements” named “Previously held P interest in a joint operation”; Amendments to IAS 12 “Income Taxes” named “Income tax consequences of payments on financial instruments P classified as equity”; Amendments to IAS 23 “Borrowing Costs” named “Borrowing costs eligible for capitalization”. P

The changes related to application of IFRS 16 and IFRIC 23 are presented below. The other standards and amendments that became mandatory on January 1, 2019 have no significant impact on the Group’s financial statements. The Groupe Renault has opted for early application in 2019 of the amendments to IAS 39, “Financial Instruments: recognition and measurement”, IFRS 9, “Financial instruments” and IFRS 7 “Financial instruments: Disclosures” concerning the interest rate benchmark reform, which were published in the Official Journal of the European Union on January 16, 2020. NEW STANDARDS AND AMENDMENTS PUBLISHED IN THE OFFICIAL JOURNAL OF THE EUROPEAN UNION THAT ARE APPLIED EARLY BY THE GROUP

Due to early application of these amendments in the Group’s consolidated financial statements at December 31, 2019, the interest rate hedging relationships (cash flow hedges or fair value hedges) remain unchanged during the period of uncertainty caused by the replacement of a benchmark rate. As the method and date for replacing LIBOR rates in the interest rate benchmark reform is not yet completely finalized, the Groupe Renault applies these amendments to hedging relationships that include LIBOR rates. The Group considers there is no uncertainty over the Euribor rate as the new method for determining Euribor has been validated by the ESMA (European Security and Market Authority). The Group has not opted for early application of the following new amendments published in the Official Journal of the European Union, which will be mandatory for financial years beginning on or after January 1, 2020.

NEW AMENDMENTS PUBLISHED IN THE OFFICIAL JOURNAL OF THE EUROPEAN UNION THAT ARE NOT APPLIED EARLY BY THE GROUP Amendments to IAS 1 and IAS 8 Definition of material Amendment to IFRS 3 Definition of a business

352 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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