MRM_REGISTRATION_DOCUMENT_2017

3

General information on the issuer and its share capital

Consolidated financial statements for the year ended 31 December 2017

Note 2

Accounting principles and methods

The main accounting methods applied in preparing the consolidated financial statements are presented below. Unless stated otherwise, these methods have been applied consistently across all periods presented.

2.1 Going concern principle The financial statements as of 31 December 2017 were prepared on the basis of the going concern principle, taking into account the operations carried out during the year and described in note 1, section 1.2 “Highlights of the period”. financial statements in accordance with IFRS Pursuant to Regulation (EC) No 1606/2002 of 19 July 2002, M.R.M. group’s consolidated financial statements as of 31 December 2017 were prepared in accordance with the standards and interpretations applicable at that date published by the International Accounting Standards Board (IASB) and adopted by the European Union at the date the financial statements were approved by the Board of directors. These accounting rules, which can be accessed via the European Commission’s website (https://ec.europa.eu/ info/business-economy-euro/company-reporting-and- auditing/company-reporting/financial-reporting_en), are the international accounting standards (IAS) and international financial reporting standards (IFRS) and interpretations by the Standing Interpretations Committee (SIC) and the International Financial Reporting Interpretations Committee (IFRIC). The Group’s consolidated financial statements were prepared on the basis of the historical cost principle except for investment properties, financial instruments and assets held for sale which are measured at fair value as per IAS 40, IAS 32 & 39 and IFRS 5. Preparing the financial statements in accordance with IFRS requires certain critical accounting estimates to be made. The Group is also required to exercise its judgement when applying accounting methods. The most critical areas in terms of judgement or complexity, or those for which the assumptions and estimates are material with respect to the consolidated financial statements, are set out in note 4.4 on the fair value of investment properties. On 22 February 2018, the Board of directors authorised the publication of the Group’s consolidated financial statements as of 31 December 2017. 2.2 Presentation of the consolidated

Standards, amendments and interpretations applicable as of 1 January 2017 Standards, amendments to standards and interpretations published by the IASB and presented below are applicable for the financial year beginning 1 January 2017: • Amendments to IAS 7 – Disclosure Initiative applicable as of 1 January 2017; • Amendments to IAS 12 – Recognition of Deferred Taxes for Unrealised Losses applicable as of 1 January 2017; • Annual improvements to IFRS – 2014-2016 cycle – IFRS 12. These amendments did not have a material impact on the Group’s results and financial position. Texts adopted by the European Union as of 31 December 2017 The following standards and amendments adopted by the European Union as of 31 December 2017 but with a subsequent effective date of application were not adopted in advance: • IFRS 9 – Financial Instruments (recognition and measurement of financial assets and liabilities); • IFRS 15 – Revenue from Contracts with Customers applicable as of 1 January 2018; • IFRS 16 – Leases applicable as of 1 January 2019. Subject to their final approval by the European Union, standards, amendments to standards and interpretations published by the IASB and presented below are applicable according to the IASB as follows: • IAS 40 – Investment Property applicable as of 1 January 2018; • Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture date of adoption postponed; Texts not adopted by the European Union as of 31 December 2017 Standards, amendments and interpretations not mandatory as of 1 January 2017

M.R.M. 2017 REGISTRATION DOCUMENT

79