IFRS 9 / IFRS 7 - Classification and measurement of financial instruments The amendments to IFRS 9 and IFRS 7, published in May 2024 and applicable to accounting periods beginning on or after 1 January 2026, subject to adoption by the European Union, clarify the classification of financial assets with contingent features, such as environmental, social and governance (ESG) features, in the context of the SPPI test. Standards, Amendments or Interpretations First-time application date: financial years starting from: Potential material effect for the Group IAS 27 - Merger between parent and subsidiary in separate financial statements 30 January 2024 No IAS 37 - Climate-related commitments 29 April 2024 No (*) IFRS 3 - Payments contingent on continued employment during transfer periods 29 April 2024 No IFRS 8 - Disclosure of revenues and expenses for reportable segments 29 July 2024 No (*) Given the commitments made by CFM Indosuez Wealth as at 31 December 2024, no provision needs to be recorded. These amendments will require additional disclosures regarding investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. Work is underway to analyse and prepare for implementation within the Group. IFRS IC decisions, finalised and approved by the IASB, that may affect the Group No decision with a material impact on the Group at 31 December 2024. 1.2 ACCOUNTING PRINCIPLES AND POLICIES USE OF JUDGEMENTS AND ESTIMATES IN PREPARING THE FINANCIAL STATEMENTS Given their nature, the assessments required to prepare financial statements require the use of assumptions and involve risks and uncertainties regarding their future outcome. 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. • financial instruments measured at fair value (including non-consolidated holdings); • pension plans and other future benefits; • 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. 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. 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. Annual Report 2024 67
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