70 The outstanding amounts in USD LIBOR carried forward are those with a maturity date after 30/06/2023, the date on which the JJ, 1-month, 3-month, 6-month and 12-month tenors disappear or are no longer representative. For the other indices, contracts switched to the alternative rate by activation of the fallback clause were excluded from the list. Consequently, the outstanding amounts in EONIA and CHF LIBOR correspond to contracts for which the contractual renegotiation had not been fully finalised by 31 December 2021 and for which it is not planned to make use of the legislative provisions in force. Outstanding amounts in GBP and JPY LIBOR correspond to the residual stock of contracts for which renegotiations with customers have not beensuccessful andwhichshouldbecoveredby theEuropean Commission's mechanism currently being put in place (1). For non-derivative financial instruments, the exposures correspond to the nominal value of the securities and the outstanding principal of the amortisable instruments. Accounting implications of the April 2021 IFRS IC decision on allocating post-employment benefits to periods of service for defined benefit plans In December 2020, the IFRS IC received a question on the methodology for calculating actuarial liabilities for defined benefit plans and on the vesting period to be used where there is a cap on the number of years of service giving rise to thegrantingof rights. Among several approaches analysed, the IFRS IC retained the approach of straight-lining over the capped period prior to the retirement age at which the rights can be obtained. The plans affected by the IFRS IC IAS 19 decision are those for which: - The granting of rights depends on being present in the company at the time of retirement (with loss of all rights in the event of early retirement); - Entitlements depend on seniority, but are capped after a certain number of years of service. This decision represents a change in the Group's approach. The impact of this decision, which has been recorded as at 1 January 2021 without comparison, amounts to 220,000 euros in terms of actuarial liabilities (see Note 7 - Employee benefits and other remuneration). (1) Estimated date: end Q1 2022. TLTRO III mechanism A third round of LTROs was decided in March 2019 by the ECB, the terms of which were reviewed in September 2019 and then in March, April and December 2020 in connection with the COVID-19 situation. The TLTRO III mechanism aims to provide long-term refinancing, with a subsidy applied over a one-year period from June 2021 to June 2022, if a target growth rate of loans to businesses and households is achieved. CFM IWMparticipates in the programme through CAIWE, which has been appointed as a bridgehead to the ECB for operation 8 of TLTRO-III on 10/05/2021. The Group has valued the interest accrued at the Deposit Facility rate - 50 bps floored at -100 bps over the special interest rate period (24 June 2021 - 31 December 2021 for the period relating to the financial year 2021), taking into account the achievement of incentive-specific thresholds during the additional special reference period. Accordingly, theGroupexpects tobenefit fromthesubsidy when this financing matures, as the conditions for benefiting from it will be met by 31 December 2021. CAIWE has taken out these TLTRO III loans fromthe ECB. Given its participation in the programme through the contribution of its eligible assets, CFM IndosuezWealth benefits from these subsidies. 1.2 ACCOUNTING PRINCIPLES AND POLICIES USE OF JUDGEMENT AND ESTIMATES IN PREPARING THE FINANCIAL STATEMENTS The assessments needed todrawup the financial statements by their nature require certain assumptions to bemade and involve risks and uncertainties as to whether they will be met in the future. Future realisations can be influenced by many factors, including: • national and international market activities; • fluctuations in interest rates and foreign exchange rates; • economic and political conditions in certain business sectors or countries; • changes in regulations or legislation. This list is not exhaustive. Accountingestimateswhich require assumptions tobemade are mainly used for the following measurements: • financial instruments measured at fair value; • impairment of debt instruments at amortised cost at fair value through other comprehensive income recyclable to income; • provisions; • deferred tax assets; The procedures for the use of judgement or estimates are described in the relevant sections below.
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