MRM - 2020 Universal Registration Document

3

General information on the issuer and its share capital

Consolidated financial statements for the financial year ended 31 December 2020

As such, the valuations of the Group’s portfolio, carried out by an independent appraiser, could vary significantly depending on the sensitivity of the following data: • the market rental value of the Company’s portfolio; • the yield, calculated on the basis of yields used in the property market. Since these data are tied to the market, they may vary significantly in the current context. They may thus have a material upward or downward impact on the fair value measurement of the property portfolio.

As of 31 December 2020, in the particular context of the health crisis linked to the COVID-19 pandemic, the independent expert JLL in charge of the valuation of part of the assets of M.R.M. indicated in its report that the valuation was carried out on the basis of a “signifcant uncertainty”. As a result, the valuation of M.R.M.’s portfolio as of 31 December 2020 is subject to the possible and still uncertain impacts of the current health crisis on the property market.

Note 3 Scope of consolidation

3.1 Consolidation methods

• in the statement of financial position, the value of shares stated at their cost of acquisition including goodwill, plus or minus changes in the Group’s share of the net assets of the affiliate net of any necessary consolidation adjustments; • in the statement of comprehensive income, a separate line showing the Group’s share of the profits of the affiliate net of consolidation adjustments. The financial statements of affiliates are recognised in the consolidated financial statements from the date the significant in uence begins until it is lost. As of 31 December 2020, the Group had no affiliates.

3.1.1 Subsidiaries Subsidiaries are companies controlled by the Group. A subsidiary is controlled where the Group has the power to directly or indirectly manage the financial and operating policies of the entity so as to obtain benefits from its activities. In general, subsidiaries are deemed to be controlled when M.R.M. directly or indirectly holds more than 50% of the voting rights. The financial statements of subsidiaries are fully consolidated from the date control is obtained and are no longer consolidated when control is transferred outside the Group. The consolidated financial statements include all of the subsidiary’s assets, liabilities, income and expenses. Equity distinguishes between Group share and minority shares. As of 31 December 2020, all entities within the scope of consolidation were wholly controlled by the Group and were therefore fully consolidated. 3.1.2 Associates Affiliates are companies in which the Group exercises significant in uence in terms of operating and financial policy without having control of the entity. In general, significant in uence is obtained when the Group owns at least 20% of the voting rights. The Group’s investments in affiliates are accounted for under the equity method which consists of recognising:

3.1.3 Transactions eliminated from the consolidated nancial statements (intra-group transactions)

Items in the statement of financial position, income and expenses and unrealised gains (losses) resulting from intra-group transactions are eliminated when preparing the consolidated financial statements. Gains resulting from transactions with affiliates are eliminated via investments in affiliates in proportion to the Group’s interest in the Company in question. Unrealised losses are eliminated in the same way as unrealised gains but only insofar as they re ect an impairment loss.

M.R.M. 2020 UNIVERSAL REGISTRATION DOCUMENT

79