2 MAJOR STRUCTURAL TRANSACTIONS AND MATERIAL EVENTS DURING THE PERIOD The scope of consolidation and changes to it as at 31 December 2024 are shown in detail at the end of the notes in Note 13 “Scope of consolidation as at 31 December 2024”. PILLAR TWO - GLOBE The new international tax rules established by the OECD, aimed at subjecting large international groups to additional taxation when the Effective Tax Rate (ETR) of a jurisdiction in which they are based is less than 15%, came into force on 1 January 2024. These rules will apply for the first time in 2024. Based on the provisions of the European Directive adopted at the end of 2022 and its transposition in the countries of the European Union, the Group has estimated the additional GloBE tax for 2024. In addition, in accordance with the amendments to IAS 12 published by the IASB on 23 May 2023 and adopted by the European Union on 8 November 2023, the Group applies the mandatory and temporary exception to the recognition of deferred tax arising from the implementation of the GloBE rules. 3 FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY Banking risks within CFM Indosuez Wealth are managed by the Risk and Permanent Control Department (DRCP) and the Finance and Strategy Department (DFS). These departments report to the Chief Executive Officer and are tasked with the management and ongoing control of credit, financial and operational risks. A description of these processes with detailed comments is provided in the "Risk Factors" chapter of the management report, as permitted by IFRS 7 Financial Instruments: Disclosures. The accounting breakdowns are shown in the financial statements. 3.1 CREDIT RISK 3.1.1 Changes in carrying amounts and value adjustments for losses during the period Value adjustments for losses correspond to the impairment of assets and to provisions for off-balance sheet commitments recognised in net income (“Cost of risk”) relating to credit risk. The following tables present a reconciliation of the opening and closing balances of value adjustments for losses recognised under Cost of Risk and the related carrying amounts, by accounting category and type of instrument. Annual Report 2024 85
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