MRM - 2018 Registration document

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General information on the issuer and its capital

Consolidated financial statements for the financial year ended 31 December 2018

2.2.1 Statement of consolidated financial position

• renegotiation of financial liabilities: IFRS 9 modifies the accounting treatment applicable to financial debt modification, exchange and restructuring operations that do not pre-empt derecognition. Given the absence of historical debt that was subject to restructuring in the financial statements as of 31 December 2018, the Group has not identified any impact relating to the implementation of this part of the standard.

The statement of financial position is presented by separating current and non-current assets and liabilities: • non-current assets consist of investment property, property, plant and equipment and intangible assets, and deposits paid; • current assets consist of property assets held for sale, all operating and tax-related receivables, and any other assets with an initial maturity of under one year or undated; • liabilities are classified as current or non-current depending on their due date. As a result, bank borrowings, guarantee deposits received and tax-related liabilities have been split into liabilities of under one year and liabilities of over one year, in accordance with the repayment schedules. Operating payables with a maturity of under one year constitute current liabilities. 2.2.2 Statement of consolidated comprehensive income Income and expense items recognised during the period are presented in two statements: • one statement detailing profit or loss items – the consolidated income statement; • one statement starting with profit (loss) for the period and itemising other items of comprehensive income – the consolidated comprehensive income statement. The consolidated income statement thus splits out the following items: • operating income, as defined by CNC recommendation 2009 R-03, includes recurring items of current income as well as changes in the fair value of properties, gains (losses) on disposal or the scrapping of investment properties (total or partial), and other operating income and expenses; • financial profit (loss) is the sum of financial income and expenses, other financial income and expenses, changes in the value of financial instruments (interest rate caps and marketable securities), and discounted payables and receivables; • net profit (loss) before tax is the sum of operating income, financial profit (loss) and other non-operating income and expenses. Other items of comprehensive income include income and expenses (including adjustments and reclassifications) that are not recognised in profit or loss as required or permitted by certain IFRS.

Standards, amendments and interpretations not mandatory as of 1 January 2018

Texts adopted by the European Union as of 31 December 2018 The following standards and amendments adopted by the European Union as of 31 December 2018 but with a subsequent effective date of application were not adopted in advance: • IFRS 16 – Leases: applicable as of 1 January 2019; • amendments to IFRS 9 – Prepayment Features with Negative Compensation: applicable as of 1 January 2019; • IFRIC 23 - Uncertain Income Tax Treatments: applicable as of 1 January 2019. Subject to their final approval by the European Union, standards, amendments to standards and interpretations published by the IASB and presented below are applicable according to the IASB as follows: • amendments to IAS 28 – Long-term Interests in Associates and Joint Ventures applicable as of 1 January 2019; • amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture date of adoption postponed; • amendments to IAS 19 - Employee Benefits, in connection with accounting for plan amendments, curtailments and settlement: applicable as of 1 January 2019; • amendments to IFRS 3 - Definition of a Business: applicable as of 1 January 2020; • amendments to IAS 1 and IAS 8 – The definition of material: applicable as of 1 January 2020; • amendment to the conceptual framework of the IFRS standards: applicable as of 1 January 2020; • annual improvements to IFRS – 2015-2017 cycle applicable as of 1 January 2019. The Group did not opt for the early adoption of these amendments, they will have no material impact on its results and financial position. Texts not adopted by the European Union as of 31 December 2018

M.R.M. 2018 REGISTRATION DOCUMENT

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