173 SEPARATE FINANCIAL STATEMENTS172 SEPARATE FINANCIAL STATEMENTS MONCLER GROUP 2022

2.16 ACCOUNTING STANDARDS AND RECENTLY PUBLISHED INTERPRETATIONS

ACCOUNTING STANDARDS, AMENDMENTS AND INTERPRETATIONS EFFECTIVE FROM 1 JANUARY 2022

Title Issued date Effective date Endorsment date EU regulation and date of publication Annual Improvements to May 2020 1 January 2022 28 June 2021 (UE) 2021/1080 IFRS Standards 2 July 2021 2018 2020 Cycle [Amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41] Property, plant and May 2020 1 January 2022 28 June 2021 (UE) 2021/1080 equipment: proceeds 2 July 2021 before intended use (Amendments to IAS 16) Onerous contracts - Cost May 2020 1 January 2022 28 June 2021 (UE) 2021/1080 of fulfilling a contract 2 July 2021 (Amendments to IAS 37) Reference to the May 2020 1 January 2022 28 June 2021 (UE) 2021/1080 Conceptual Framework 2 July 2021 (Amendments to IFRS 3)

The adoption of these amendments had no impacts on the Compa- ny financial statements.

alised or the deferred tax liability is settled. Deferred tax assets and liabilities are not discounted.

Deferred tax assets recognised on tax losses and on deduct- ible differences are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.

Tax liabilities include the estimate of risks associated with uncertainties on the tax treatments adopted for determining in- come taxes in accordance with the new IFRIC 23. These uncertain- ties can arise from: i) unclear or complex tax rules; ii) changes in tax regulations or clarifications by tax authorities; iii) ongoing tax audits and/or disputes; iv) public information on ongoing tax assessments and/or disputes involving other entities.

2.14 FOREIGN CURRENCY

The amounts included in the financial statements of each Group company are prepared using the currency of the country in which the company conducts its business.

FOREIGN CURRENCY TRANSACTIONS Foreign currency transactions are recorded at the exchange rate in effect at the transaction date. The assets and liabilities denominat- ed in foreign currencies at the reporting date are translated at the exchange rate prevailing at that date. Exchange differences arising from the conversion or settlement of these items due to different rates used from the time of initial recognition are recorded in the in- come statement.

2.15 FAIR VALUE

IFRS 13 is the only point of reference for the fair value measure- ment and related disclosures when such an assessment is required or permitted by other standards. Specifically, the principle defines fair value as the consideration received for the sale of an asset or the amount paid to settle a liability in a regular transaction between market participants at the measurement date. In addition, the new standard replaces and provides for additional disclosures required in relation to fair value measurements by other accounting stan- dards, including IFRS 7.

IFRS 13 establishes a hierarchy that classifies within different lev- els the inputs used in the valuation techniques necessary to mea- sure fair value. The levels, presented in a hierarchical order, are as follows:

level 1: Fair values measured using quoted prices (un- adjusted) in active markets for identical assets or lia- bilities;

level 2: Fair values measured using inputs other than quoted prices included within Level 1 that are observ- able for the asset or liability, either directly (i.e. as pric- es) or indirectly (i.e. derived from prices);

level 3: Fair values measured using inputs for the asset or liability that are not based on observable market da- ta (i.e. unobservable inputs).