POST-EMPLOYMENT BENEFITS Defined-benefit plans At each closing date, CFM Indosuez Wealth determines its retirement and similar benefits as well as all the employee benefits granted in respect of defined benefit plans. In accordance with IAS 19, these commitments are assessed based on a set of actuarial, financial and demographic assumptions, using the Projected Unit Credit method. Under this method, for each year of service by an employee, a cost is allocated corresponding to the rights accrued over the period. This cost is calculated based on the discounted future benefit. Calculations of costs related to pension benefits and other future employee benefits are based on assumptions made by Management regarding the discount rate, staff turnover rate and changes in salary and social security costs. (see note 7.4 “Retirement benefits – defined benefit plans”). Discount rates are determined based on the average term of the commitment, that is, the arithmetical average of the terms calculated between the valuation date and the payment date, weighted by employee turnover assumptions. The underlying item used is the discount rate by reference to the iBoxx AA. index In accordance with IAS 19, CFM Indosuez Wealth recognises all actuarial gains and losses in equity non-recyclable to income. Actuarial gains and losses consist of experience adjustments (difference between what was estimated and what happened) and the effect of changes in actuarial assumptions. The expected return on plan assets is determined using discount rates applied to measure the defined benefit obligation. The difference between the expected return and the actual return on plan assets is recognised in gains and losses recognised directly in non-recyclable equity. The amount of the provision is equal to: - the present value of the defined benefit obligation as of the balance sheet date, calculated using the actuarial method recommended by IAS 19; - less, if applicable, the fair value of the assets allocated to cover these commitments. These may be represented by an eligible insurance policy. In the event of the obligation being fully covered by a policy that corresponds exactly, both as regards amount and period, to all or part of the benefits payable under the plan, the fair value of the policy is deemed to be the value of the corresponding obligation, (i.e. the amount of the corresponding actuarial liability). Defined-contribution plans Companies with employees contribute to various mandatory pension schemes. The funds are managed by independent organisations and the contributing companies have no legal or constructive obligation to pay additional contributions if the funds have insufficient assets to cover all benefits corresponding to services rendered by employees during the year and in previous years. As a result, CFM Indosuez Wealth has no liability in this respect other than the contributions payable for the past financial year, which constitute the expenses for the financial year. OTHER LONG-TERM BENEFITS Other long-term benefits are those other than postemployment benefits or termination benefits that are to be paid to employees but are not due in full in the twelve months following the end of the period in which the corresponding services were rendered. These include, in particular, bonuses and other deferred remuneration payable twelve or more months after the end of the period in which they were accrued, but which are not share-indexed. The method of assessment is similar to the one used by the Group for post-employment benefits categorised as defined-benefit plans. INCOME TAX (IAS 12) In accordance with IAS 12, income tax includes all income taxes, whether current or deferred. Tax payable IAS 12 defines current tax as "the amount of income tax payable (recoverable) in respect of taxable profit (tax loss) for a period". Taxable profit is the profit (or loss) for a financial year determined in accordance with the rules laid down by the tax authorities, on the basis of which income tax must be paid (recovered). The applicable rates and rules used to determine the current tax liability are those in effect in each country where the Group’s companies are established. The current tax liability includes all taxes on income, payable or recoverable, for which payment is not dependent on the completion of future transactions, even if payment is spread over several financial years. Tax due, until it is paid, must be recognised as a liability. If the amount that has already been paid for the current year and previous years exceeds the amount due for those years, the surplus must be recognised under assets. When tax credits on income from securities portfolios and amounts receivable are effectively used to pay corporate income tax due for the year, they are recognised under the same heading as the income to which they relate. The corresponding tax charge continues to be recognised under “Income tax” in the Income Statement. Annual Report 2024 79
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