101 CONSOLIDATED FINANCIAL STATEMENTS100 CONSOLIDATED FINANCIAL STATEMENTS MONCLER GROUP 2022

on the acquisition of a foreign operation are treated as assets and li- abilities of the foreign operation and translated at the exchange rate ruling at the reporting date.

The main exchange rates used to convert into Euro the Con- solidated Financial Statements of foreign subsidiaries as at and for the years ended 31 December 2022 and 31 December 2021 are as follows:

Average rate Rate at the end of the period As at As at Year 2022 Year 2021 31/12/2022 31/12/2021 AED 3.867320 4.343610 3.917100 4.159500 AUD 1.516690 1.574940 1.569300 1.561500 BRL 5.439900 6.377890 5.638600 6.310100 CAD 1.369500 1.482600 1.444000 1.439300 CHF 1.004710 1.081150 0.984700 1.033100 CNY 7.078800 7.628230 7.358200 7.194700 CZK 24.565900 25.640500 24.116000 24.858000 DKK 7.439560 7.437030 7.436500 7.436400 GBP 0.852761 0.859604 0.886930 0.840280 HKD 8.245100 9.193180 8.316300 8.833300 HUF 391.286000 358.516000 400.870000 369.190000 JPY 138.027000 129.877000 140.660000 130.380000 KRW 1,358.070000 1,354.060000 1,344.090000 1,346.380000 KZT 485.587000 504.428000 492.900000 492.750000 MOP 8.492690 9.468970 8.565800 9.098300 MXN 21.186900 23.985200 20.856000 23.143800 MYR 4.627900 4.898200 4.698400 4.718400 NOK 10.102610 10.163330 10.513800 9.988800 NZD 1.658200 1.672400 1.679800 1.657900 PLN 4.686100 4.565200 4.680800 4.596900 RON 4.931310 4.921480 4.949500 4.949000 RUB 72.634900 87.152700 76.076500 85.300400 SEK 10.629600 10.146500 11.121800 10.250300 SGD 1.451160 1.589100 1.430000 1.527900 TRY 17.408790 10.512370 19.964900 15.233500 TWD 31.322300 33.036100 32.760300 31.367100 UAH 34.010500 32.259200 39.037000 30.921900 USD 1.053050 1.182740 1.066600 1.132600

2.3 BUSINESS COMBINATIONS

Business combinations are accounted under the acquisition method. Under this method, the identifiable assets acquired and the li-

abilities assumed are measured initially at their acquisition-date fair values. The costs incurred in a business combination are account- ed as expenses in the periods in which the services are rendered.

Goodwill is determined as the excess of the aggregate of the considerations transferred, of any non-controlling interests and, in a business combination achieved in stages, the fair value of pre- viously held equity interest in the acquiree compared to the net amounts of fair value of assets transferred and liabilities assumed at the acquisition date. If the fair value of the net assets acquired is greater than the acquisition cost, the difference is recognised di- rectly in the statement of income at the acquisition date. Non-con- trolling interests could be measured either at their fair value at the acquisition date or at the non-controlling interests proportionate share of the identifiable net assets. The election of either method is done for each single business combination.

If the initial accounting for a business combination is incom- plete by the end of the reporting period in which the combination occurred, the Group shall report in the financial statements pro- visional amounts for the items for which the accounting is incom- plete. During the measurement period, that shall not exceed one year from the acquisition date, the provisional amounts are ret- rospectively adjusted to reflect new information obtained about facts and circumstances that existed at the acquisition date and, if known, would have affected the measurement of assets and liabili- ties recognised at that date.

2.4 NON-CURRENT ASSETS AVAILABLE FOR SALE AND DISCONTINUED OPERATIONS

Non-current assets available for sale and discontinued operations are classified as available for sale when their values are recoverable mainly through a probable sale transaction. In such conditions, they are valued at the lower of their carrying value or fair value, net of cost to sell if their value is mainly recoverable through a sale trans- action instead of continued use.

Discontinued operations are operations that: include a separate line of business or a different geographi-

cal area; are part of a single coordinated plan for the disposal of a sep-

arate major line of business or geographical area of activity; consist of subsidiaries acquired exclusively for the purpose

of being sold.

In the consolidated income statement, non-current assets held for sale and disposal groups that meet the requirements of IFRS 5 to be defined as discontinued operations , are presented in a single caption that includes both gains and losses, as well as losses or gains on disposal and the related tax effect. The comparative peri- od is subsequently restated in accordance with IFRS 5.

As far as the financial position is concerned, non-current as- sets held for sale and disposal groups that meet the requirements of IFRS 5 are reclassified as current assets and liabilities in the pe- riod in which such requirements arise. The comparative financial statements are not restated or reclassified.

2.5 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at acquisition or manufac- turing cost, not revalued net of accumulated depreciation and im- pairment losses ( impairment ). Cost includes original purchase price and all costs directly attributable to bringing the asset to its working condition for its intended use.

DEPRECIATION Depreciation of property, plant and equipment is calculated and rec- ognised in the consolidated income statement on a straight-line ba- sis over the estimated useful lives as reported in the following table:

Category Depreciation period Land No depreciation Buildings From 25 to 33 years Plant and equipment From 8 to 12 years Fixtures and fittings From 5 to 10 years Electronic machinery and equipment From 3 to 5 years Leasehold improvements Useful life of improvements Rights of use Lease period Other fixed assets Depending on market conditions generally within the expected utility to the entity

Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will take ownership of the asset by the end of the lease term.

Depreciation period is reviewed at each reporting period and adjusted if appropriate.

GAIN/LOSSES ON THE DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT Gains and losses on the disposal of property, plant and equipment represent the difference between the net proceeds and net book value at the date of sale. Disposals are accounted when the rele- vant transaction becomes unconditional.