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

4.12 Loans and borrowings

Accounting principles

Borrowings Financial liabilities comprise borrowings and other interest-bearing liabilities.

On initial recognition, they are measured at fair value, taking account of transaction costs directly attributable to the issuance of the financial liability. They are subsequently recognised at amortised cost using the effective interest rate method. The effective interest rate includes the nominal interest rate and actuarial amortisation of issue expenses and issue and redemption premiums.

Borrowings of less than one year are classified as “Current borrowings”.

Borrowing costs Revised IAS 23 – Borrowing costs removes the option of expensing borrowing costs and requires companies to capitalise borrowing costs directly attributable to the purchase, construction or production of a qualifying asset as a component of the cost of the asset. The Group borrows money specifically for the acquisition, construction or production of a specific qualifying asset. Financial expenses directly associated with this asset are accordingly easily determined and capitalised in the cost of the qualifying asset.

As of 31 December 2018, the Group no longer had any qualifying assets allowing the capitalisation of interest costs. The breakdown of current and non-current loans and borrowings is as follows:

31/12/2018

31/12/2017

(in thousands of euros)

Bank debts

72,056

71,141

906

1,083

Guarantee deposits received

NON CURRENT

72,962

72,223

Bank debts

2,044

2,244

Loan granted by SCOR SE Guarantee deposits received

-

21,889

809

921 189

Accrued interest

91

CURRENT

2,944

25,244

75,906

97,467

TOTAL LOANS AND BORROWINGS

The breakdown of loans and borrowings by maturity is as follows:

31/12/2018

1 year

1 to 5 years Over 5 years

(in thousands of euros)

Bank debts

74,100

2,044

72,056

-

Guarantee deposits received

1,715

809

783

122

91

91

-

-

Accrued interest

TOTAL LOANS AND BORROWINGS

75,906

2,944

72,839

122

The debt maturing within a year comprises the contractual repayments to be made over the next twelve months.

90

M.R.M. 2018 REGISTRATION DOCUMENT