CFM Indosuez Wealth Management Annual Report 2022 80 1.3 CONSOLIDATION PRINCIPLES AND METHODS (IFRS 10, IFRS 11 AND IAS 28) SCOPE OF CONSOLIDATION The consolidated financial statements include the accounts of CFM Indosuez Wealth and those of all the companies over which, according to the provisions of IFRS 10, IFRS 11 and IAS 28, CFM Indosuez Wealth has the power to control, joint control or significant influence, with the exception of those that are not significant in relation to all the companies included in the consolidation scope. DEFINITION OF CONTROL In accordance with international accounting standards, all the entities listed above are under the exclusive control of CFM Indosuez Wealth and are therefore fully consolidated. All consolidated companies have their accounts kept in EUR. CONSOLIDATION METHODS Consolidation methods are set out in IFRS 10, IFRS 11 and IAS 28 respectively. They are based on the nature of the control exercised by CFM Indosuez Wealth over entities within the scope of consolidation, regardless of their activity and whether or not they have legal status: - full consolidation for controlled entities, including entities with different account structures, even if their activity is not in line with that of CFM Indosuez Wealth; - the equity method, for entities over which significant influence is exercised and jointlyowned businesses (excluding joint ventures). Full consolidation consists of replacing the value of the securities with all of the subsidiary’s asset and liability items. The equity and income attributable to non-controlling interests is presented separately in the consolidated balance sheet and Income Statement. The equity method consists of replacing the value of the securities with the Group's share of equity and the profit or loss of the companies concerned. As the two consolidated subsidiaries were created by CFM Indosuez Wealth, no goodwill has been recognised. RESTATEMENTS AND ELIMINATIONS In accordance with IFRS 10, CFM Indosuez Wealth makes the restatements necessary to harmonise the valuation methods of consolidated companies. The impact on the consolidated balance sheet and income statement of internal Group operations is eliminated for fully consolidated entities. Capital gains or losses from asset sales between consolidated companies are eliminated; any impairments recorded on an internal transfer are recognised. 2 MAJOR STRUCTURAL TRANSACTIONS AND MATERIAL EVENTS DURING THE PERIOD IMPACT OF MILITARY OPERATIONS IN UKRAINE On 24 February 2022, a large-scale military operation was launched by Russia against Ukraine, associated with an invasion of the territory of Ukraine by the armed forces of Russia, with the involvement of Belarus. The European Union condemned this act of war and in response announced the implementation of restrictive, sectoral and individual measures. CFM Indosuez, in conjunction with the Crédit Agricole Group, has set up a crisis unit to monitor the impact of the decisions taken by the European Union and the Principality's government. The CFM Indosuez Wealth Group has no investments in Ukraine and Russia. These events had no significant impact on the 2022 accounts. As things stand, the impact on the 2023 accounts should be limited.
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