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

4.13 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 2019, 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:

12/31/2019

12/31/2018

(in thousands of euros)

Bank debts

74,701

72,056

Lease liability

100

-

1,006

906

Guarantee deposits received

NON CURRENT

75,808

72,962

Bank debts

2,446

2,044

Lease liability

35

-

Guarantee deposits received

616

809

Accrued interest

78

91

CURRENT

3,174

2,944

78,982

75,906

TOTAL LOANS AND BORROWINGS

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

12/31/2019

1 year

1 to 5 years Over 5 years

(in thousands of euros)

Bank debts

77,147

2,446

74,701

- -

Lease liability

135

35

100 820

1,622

616

186

Guarantee deposits received

Accrued interest

78

78

-

-

TOTAL LOANS AND BORROWINGS

78,982

3,174

75,622

186

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

M.R.M. 2019 UNIVERSAL REGISTRATION DOCUMENT

85