65 - 23 June 2022), the interest rate used is also the rate of the Deposit Facility - 50 bps with a floor of - 100 bps, taking into account the achievement of the criteria for the level of eligible loans specific to the second incentive during the additional special reference period. The IFRS IC decision has had no impact on the way in which the Group accounts for its interests under TLTRO III. At its meeting on 27 October 2022, the Governing Council of the ECB decided to amend the remuneration conditions applicable to these refinancing operations with effect from 23 November 2022 (ECB Decision 2022-2128). European Central Bank Decision (EU) 2022/2128 of 27 October 2022 defined two new periods as follows: • the "interest rate period following the special additional interest rate period " or " postadditional interest rate period (post-ASIRP) " from 24 June to 22 November 2022 (or the early redemption date if earlier); during this period, remuneration of the TLTRO III is calculated on the basis of an average of the Deposit Facility Rates from the drawdown date until the end of this period. • the "last interest rate period" (LIRP): from 23 November 2022 until the expected maturity date of the drawdowns. During the LIRP, the remuneration of the TLTRO III is calculated on the basis of an average of the Deposit Facility Rates from 23 November until the expected redemption date. 1.2 ACCOUNTING PRINCIPLES AND POLICIES USE OF JUDGEMENTS AND ESTIMATES IN PREPARING THE FINANCIAL STATEMENTS The assessments needed to draw up the financial statements by their nature require certain assumptions to be made 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. Accounting estimates which require assumptions to be made are mainly used for the following measurements: • financial instruments measured at fair value (including non-consolidated holdings); • pension plans and other future benefits; • stock option plans; • impairment of debt instruments at amortised cost at fair value through other comprehensive income recyclable to income; • provisions; • impairment losses on goodwill; • deferred tax assets; • valuation of companies accounted for by the equity method; The procedures for the use of judgement or estimates are described in the relevant sections below. FINANCIAL INSTRUMENTS (IFRS 9, IFRS 13, IAS 32 AND 39) Definitions IAS 32 defines a financial instrument as any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity, meaning any contract representing contractual rights or obligations to receive or pay cash or other financial assets. Financial assets and liabilities are treated in the financial statements in accordance with IFRS 9 as adopted by the European Union, including for financial assets held by the Group's insurance entities. Derivatives are financial assets or liabilities whose value changes according to that of an underlying (provided that, in the case of a non-financial variable, the underlying is not specific to one of the parties to the contract), which require little or no initial investment and which are settled at a future date. IFRS 9 defines the principles for classification and measurement of financial instruments, impairment/ provisioning of credit risk and hedge accounting, excluding macro-hedging transactions. However, it should be noted that CFM Indosuez Wealth has made use of the option not to apply the general hedge accounting model under IFRS 9. All hedging relationships consequently remain within the scope of IAS 39, pending future provisions in regard to macro-hedging. "Green" or "ESG" financial assets and "green bond" financial liabilities include a variety of instruments, in particular loans to finance environmental projects. It should be noted that not all financial instruments bearing these qualifications necessarily offer remuneration that varies according to ESG criteria. This terminology is subject to change in line with European regulations on sustainable finance. These instruments are accounted for in accordance with IFRS 9 and the principles set out below.
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