MRM - 2020 Universal Registration Document

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General information on the issuer and its share capital

Consolidated financial statements for the financial year ended 31 December 2020

4.13 Borrowings and financial debt

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 IAS 23 amended – “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 20120, 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:

12/31/2020

12/31/2019

(in thousands of euros)

Bank debts

74,541

74,701

Lease liability

64

100

Guarantee deposits received

1,025

1,006

NON CURRENT

75,630

75,808

Bank debts

2,300

2,446

Lease liability

32

35

Guarantee deposits received

636

616

Accrued interest

73

78

CURRENT

3,041

3,174

TOTAL LOANS AND BORROWINGS

78,671

78,982

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

12/31/2020

1 year

1 to 5 years Over 5 years

(in thousands of euros)

Bank debts

76,840

2,300

74,541

- -

Lease liability

95

32

64

Guarantee deposits received

1,662

636

925

101

Accrued interest

73

73

-

-

TOTAL LOANS AND BORROWINGS

78,671

3,041

75,529

101

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

M.R.M. 2020 UNIVERSAL REGISTRATION DOCUMENT

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