MRM // 2022 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 2022

4.6 Assets held for sale

Accounting principles

Under IFRS 5, assets and liabilities that the Company has decided to sell and the carrying amount which will be recovered principally through a sale transaction rather than through continuing use are to be classified as “Assets held for sale” and “Liabilities held for sale”.

The “Assets held for sale” item includes all receivables on benefits granted to property tenants.

For the sale to be highly likely, an asset sale plan must have been undertaken, and an active programme for finding a buyer must have been launched. Properties in this category continue to be measured using the fair-value model as follows: • property under sale agreement: sale value in the sale agreement net of the costs and commissions required to complete the sale; • property for sale: appraisal value excluding transfer taxes net of costs and commissions required to complete the sale.

As of 31 December 2022, as on 31 December 2021, the Group did not carry assets held for sale.

4.7 Trade receivables and related accounts

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:

31/12/2022

31/12/2021

(in thousands of euros)

7,748

7,164

Total gross trade receivables Impairment of trade receivables

-3,535 4,213

-2,916 4,248

TOTAL NET TRADE RECEIVABLES

Invoices pending

-73

-61

Rent-free periods and rent reductions spread over the term of the lease

-1,719 2,421

-1,922 2,264

TOTAL NET TRADE RECEIVABLES DUE

M.R.M. 2022 UNIVERSAL REGISTRATION DOCUMENT

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