MRM - 2019 Universal Registration Document

3

General information on the issuer and its share capital

Consolidated financial statements for the financial year ended 31 December 2019

Changes in properties held for sale

12/31/2019

(in thousands of euros)

NET BALANCE AT OPENING

5,660

Change in fair value

-50

Asset disposals

-5,430

NET BALANCE AT CLOSING

180

As of 31 December 2019, the assets held for sale totalled €180,000, compared with €5,660,000 as of 31 December 2018. The assets are currently being actively marketed with a view to their disposal within the coming twelve months.

4.7 Trade receivables

Accounting principles

Receivables are stated at fair value on initial recognition, and subsequently at amortised cost less any impairment losses.

Impairment of trade receivables is recognised when there are objective indications that the Group will not be able to recover the full amounts due as per the initial terms of the transaction. Serious financial difficulties faced by the debtor, the likelihood of bankruptcy or financial restructuring of the debtor and payment default are indicators of the impairment of a receivable. In general, the Group writes down tenant receivables older than six months by applying an impairment rate of up to 100% (depending on the risk estimated by the Group) of the pre-tax amount of the receivable minus the guarantee deposit which is kept when applicable. The Group uses the expected loss impairment model introduced in IFRS 9 by applying an average depreciation rate based on the history of healthy receivables and doubtful debts that have become irrecoverable over the last five financial years to the invoices to be established. An additional impairment loss is recognised when the calculation involving the historical average depreciation rate is greater than the impairment recognised in accordance with the accounting principle described above, for each asset class previously mentioned.

The amount of impairment is recognised in income under “Provisions and impairment”.

Trade receivables break down as follows:

12/31/2019

12/31/2018

(in thousands of euros)

Total gross trade receivables Impairment of trade receivables TOTAL NET TRADE RECEIVABLES

6,631

3,721

-2,961

-1,367

3,670

2,354

Invoices pending

-253

-132 -971

Rent-free periods staggered over the lease term TOTAL NET TRADE RECEIVABLES DUE

-1,364 2,071

1,251

The aged balance of trade receivables is as follows:

Overdue < 90 days

Overdue < 180 days

Overdue > 180 days

Total

(in thousands of euros)

Trade receivables

1,057

171

843

2,071

TOTAL NET TRADE RECEIVABLES DUE

1,057

171

843

2,071

80

M.R.M. 2019 UNIVERSAL REGISTRATION DOCUMENT