Moncler Group | Annual Report 2024 Consolidated Financial Statements 350 Moncler Group | Annual Report 2024 Consolidated Financial Statements 351

2. Summary of material accounting principles

used in the preparation of the Consolidated

Financial Statements

The accounting principles set out below have been applied

consistently for f iscal year 2024 and the prior year.

2.1 Basis of consolidation

The Consolidated Financial Statements comprise those

o

f the Parent Company and its subsidiaries, of which the Parent

owns, directly or indirectly, a majority of the voting rights

and over which it exercises control, or from which it is able

to benef it by virtue of its power to govern the subsidiaries’

f inancial and operating policies.

The f inancial results of the subsidiaries are prepared

for the same reporting period as the Parent Company,

using consistent accounting policies.

Subsidiaries are consolidated from the date on which

c

ontrol is transferred to the Group and cease to be consolidated

from the date on which control is transferred out of the Group.

Wher

e the Group loses control of a subsidiary, the Consolidated

Financial Statements include the results for the portion

of the reporting period during which the Parent Company

had control. In the Consolidated Financial Statements,

non-controlling interests are presented separately within

equity and in the statement of income. Changes in the parent’s

ownership interest, that do not result in a loss of control

or changes that represent acquisition of non-controlling

interests after the control has been obtained, are accounted

for as changes in equity.

In preparing the Consolidated Financial Statements,

the ef fects, the balances as well as the unrealized prof it

or loss recognised in assets resulting from intra-group

transactions are fully eliminated.

Investments in associates

Investments in associates are accounted for using the equity

method whereas the initial recognition is stated at acquisition

cost and adjusted thereafter for the post-acquisition change

in the investor’s share of net assets. On acquisition

of the investment any dif ference between the cost of the investment

and the investors share of the net fair value of the associates

assets and liabilities is included in the carrying amount

of the investment If the investors share of losses of the associate

equals or exceeds its interest in the associate the investors

interest is reduced to zero and additional losses are provided

for and a liability is recognised to the extent that the investor has

incurred a legal obligation or has the intention to make payments

on behalf of the associate

2.2 Foreign currency

Items included in the f inancial statements of each of the Group’s

entities are measured using the currency of the primary

economic environment in which the entity operates (the

functional currency).

Transactions in foreign currencies

Foreign currency transactions are recorded by applying the spot

exchange rate at the date of the transaction. Monetary assets

and liabilities denominated in foreign currencies, which are held

at year-end, are translated into the functional currency

at the exchange rate ruling at the reporting date. Exchange

dif ferences arising on the settlement on the translation

of monetary transactions at a rate dif ferent from those

at which they were translated at initial recognition are recognised

in the consolidated income statement in the period in which

they arise.

Translation of the results of overseas businesses

Assets and liabilities of overseas subsidiaries included in the

Consolidated Financial Statements are translated into

th

e Group’s reporting currency of Euros at the exchange rate

ruling at the reporting date. Income and expenses are translated

at

the average exchange rate for the reporting period, as it is

considered to approximate at best the actual exchange rate

at the transaction date. Dif ferences arising on the adoption

of this method are recognised separately in other comprehensive

income and are presented in a separate component of equity

as translation reserve until disposal of the foreign operation.

Goodwill and fair value adjustments arising on the acquisition

of a foreign operation are treated as assets and liabilities

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 Consolidated Financial Statements of foreign subsidiaries

as at and for the years ended 31 December 2024 and

31 December 2023 are as follows:

Average rate Rate at the end of the period

Year 2024 Year 2023 As at 31 December 2024 As at 31 December 2023

AED 3.975000 3.971000 3.815400 4.058100

AUD 1.639700 1.628800 1.677200 1.626300

BRL 5.828300 5.401000 6.425300 5.361800

CAD 1.482100 1.459500 1.494800 1.464200

CHF 0.952600 0.971800 0.941200 0.926000

CNY 7.787500 7.660000 7.583300 7.850900

CZK 25.119800 24.004300 25.185000 24.724000

DKK 7.458900 7.450900 7.457800 7.452900

GBP 0.846620 0.869790 0.829180 0.869050

HKD 8.445400 8.465000 8.068600 8.631400

HUF 395.303900 381.852700 411.350000 382.800000

JPY 163.851900 151.990000 163.060000 156.330000

KRW 1,475.400000 1,412.880000 1,532.150000 1,433.660000

KZT 507.910000 493.570000 544.980000 502.480000

MOP 8698800 8718900 8310700 8890300

MXN 19831400 19183000 21550400 18723100

MYR 4950300 4932000 4645400 5077500

NOK 11629000 11424800 11795000 11240500

NZD 1788000 1762200 1853200 1750400

PLN 4305800 4542000 4275000 4339500

RON 4974600 4946700 4974300 4975600

RUB 100187300 92599400 106102800 100550600

SEK 11432500 11478800 11459000 11096000

SGD 1445800 1452300 1416400 1459100

TRY 35573400 25759700 36737200 32653100

TWD 34748300 33698300 34056600 33874000

UAH 43490100 39540000 43685500 41996000

USD 1082400 1081300 1038900 1105000