Groupe Renault - 2019 Universal Registration Document

04

CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Financing by assignment of receivables 23 – E – Some of the Automotive segment’s external financing comes from assignment of commercial receivables to non-Group financial establishments. Details of financing by assignment of commercial receivables is as follows:

December 31, 2019

December 31, 2018

Receivables assigned to non-Group entities and derecognized

Receivables assigned and not derecognized

Receivables assigned to non-Group entities and derecognized

Receivables assigned and not derecognized

(€ million)

Automotive (excluding AVTOVAZ)

1,805

- - -

1,375

- - -

AVTOVAZ

5

-

TOTAL ASSIGNED

1,810

1,375

The total amount of tax receivables assigned and derecognized in 2019 is €438 million, comprising €324 million of CIR receivables, €54 million of CICE receivables and €60 million of VAT receivables (€218 million of CIR receivables, €60 million of CICE receivables and €85 million of VAT receivables in 2018). French tax receivables assigned outside the Group (the “CIR” Research Tax Credit and “CICE” Tax Credit For Competitiveness and Employment), with transfer of substantially all the risks and benefits

associated with ownership of the receivables, are only derecognized if the risk of dilution is deemed to be non-existent. This is notably the case when the assigned receivables have already been subject to a tax inspection or preliminary audit. No assigned tax receivables remained in the balance sheets at December 31, 2019. The assigned receivables are derecognized when the associated risks and benefits are substantially transferred, as described in note 2-P.

FINANCIAL INSTRUMENTS BY CATEGORY, FAIR VALUE AND IMPACT ON NET INCOME NOTE 24 Financial instruments by category and fair 24 – A – value by level IFRS 9, which is applicable from 2018, defines three categories of financial instruments: financial assets at fair value through other components of P comprehensive income;

level 2: instruments whose fair values are derived from observable P market prices and are not included in level 1; level 3: instruments whose fair values are derived from P unobservable inputs on the market; the fair value of investments in non-controlled entities is generally based on the share of net assets. Fair values have been determined on the basis of information available at the end of the year and do not therefore take account of subsequent movements. In 2019, no financial instruments were transferred between Level 1 and Level 2, or into or out of Level 3.

financial assets at fair value through profit or loss; P loans and receivables carried at amortized cost. P The following breakdown by level of fair value is presented for financial instruments carried in the balance sheet at fair value; level 1: instruments whose fair values are derived from quoted P prices in an active market; fair value is generally identical to the most recent quoted price;

398 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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