2025 Universal Registration Document

Accounting policies

Investments in companies accounted for under the equity method are initially recognised at the cost of acquisition, including acquisition costs and any goodwill. Their carrying amount is then increased or decreased to recognise the Group’s share of the entity’s profits or losses after the date of acquisition. Whenever the cumulative losses are greater than the value of the Group’s net investment in the equity-accounted company, the portion of losses exceeding the value of the investment is not taken to income unless the Group has entered into a commitment to recapitalise the company or provide it with funding.

If there is an indication that an impairment loss has arisen for an equity-accounted investment, the recoverable amount is tested in a way similar to that described in Note E.9.2, “Goodwill impairment tests”. Impairment losses shown by impairment tests are recognised in profit or loss and as a deduction from the carrying amount of the corresponding investments.

The profit or loss of companies accounted for under the equity method is reported on a specific line for the determination of recurring operating income. The terms “associates” and “joint ventures” are defined in Note A.2.2, “Consolidation methods”.