Moncler Group | Annual Report 2024 Consolidated Financial Statements 358 Moncler Group | Annual Report 2024 Consolidated Financial Statements 359

the rules and the treatment of TFR scheme were changed.

Starting from contribution vested on or after 1 January 2007

and not yet paid at the reporting date, referring to entities

with more than 50 employees, Italian post-employment benef its

is recognised as a def ined contribution plan. The contribution

vested

up to 31 December 2006 is still recognised as a def ined

benef it plan and accounted for using actuarial assumptions.

2.12 Provision for risks and charges

Provisions are recognised when the Group has a present legal

or constructive obligation as a result of past events, for which

it is probable that an outf low of economic resources will

be required to settle the obligation and where the amount

of the obligation can be reliably estimated.

Restructuring provision is recognised when the Group

has a detailed formal restructuring plan and the plan has been

implemented or the restructuring plan has been publicly

announced. Identif iable future operating losses up to the date

of a restructuring are not included in the provision.

C

hanges in estimates are recognised in the income statement

in the period in which they occur.

2.13 Share-based payments

The fair value at grant date of the incentives granted

to employees in the form of share-based payments, that are

equity settled, is usually included in expenses with a matching

increase in equity over the period during which the employees

obtain the incentives rights. The amount recognised as an expense

is adjusted to ref lect the actual number of incentives for which

the continued service conditions are met and the achievement

of non-market conditions, so that the f inal amount recognised

as an expense, is based on the number of incentives that fulf il

these conditions at the vesting date. In case the incentives

granted as share-based payments whose conditions are not

to be considered to maturity, the fair value at the grant date

of the share-based payment is measured to ref lect such conditions.

With reference to the nonvesting conditions any dif ference

between amounts at the grant date and the actual amounts will

not have any impact on the Consolidated Financial Statements

The fair value of the amount payable to employees related

to share appreciation rights settled in cash is recognised

as an expense with a corresponding increase in liabilities over

the period during which the employees unconditionally become

entitled to receive the payment The liability is measured

at yearend and the settlement date based on the fair value

of the share appreciation rights Any changes in the fair value

of the liability are recognised in prof it or loss for the year

2.14 Revenue recognition

Based on the f ive-step model introduced by IFRS 15, the Group

recognises revenues after identifying the contracts with its

clients and the related services to be provided (transfer of goods

and/or services), determining the consideration which it believes

it is entitled to in exchange for the provision of each of these

services and assessing the manner in which these services are

provided (at a given time or over time).

Wholesale sales are recognised when goods are dispatched

to trade customers, ref lecting the transfer of risks and rewards.

The provision for returns and discounts, recorded as a revenue

adjustment, is estimated and accounted based on future

expectation, taking into consideration historical return trends

and is recorded as a variable component of the contractual

con

sideration with the concurrent recognition of a liability

for returns and of the corresponding asset in the statement

of f inancial position.

Variable components of the consideration (for example,

the ef fect of returns) are recognised in the f inancial statements

only when it is highly probable that there will be no signif icant

adjustment to the amount of revenue recognised in the future.

Retail sales are recognised at the date of transactions

with f inal customers.

Royalties received from licensee are accrued as earned

on the basis of the terms of the relevant royalty agreement which

is typically based on sales volumes.

Upon receipt of an advance payment from a client, the Group

recognises the amount of the advance payment for the obligation

to transfer assets in the future under Other current liabilities

and derecognises this liability by recognising the revenue when

the assets are transferred.

The Group recognises the amounts paid to customers

as a reduction in revenues when the costs for services cannot

be reliably estimated or in costs when the costs for services

can reliably be estimated.

215 Borrowing costs

Borrowing costs are recognised on an accrual basis taking

into consideration interest accrued on the net carrying amount

of f inancial assets and liabilities using the ef fective interest

rate method

216 Taxation

Tax expense recognised in the consolidated income statement

represents the aggregated amount related to current tax

and deferred tax

Current taxes are determined in accordance with enforced

rules established by local tax authorities Current taxes are

recognised in the consolidated income statement for the period

except to the extent that the tax arises from transactions

o

r events which are recognised directly either in equity or in other

comprehensive income.

Deferred tax liabilities and assets are determined based on

temporary taxable or deductible dif ferences arising between

the tax bases of assets and liabilities and their carrying amounts

in the Group Consolidated Financial Statements. Current

and deferred tax assets and liabilities are of fset when income

taxes are levied by the same tax authority and when there

is a legally enforceable right to of fset the amounts.

Deferred tax liabilities and assets are determined using

tax rates that have been enacted by the reporting date

and are expected to be enforced when the related deferred

income tax asset is realised or the deferred tax liability is settled.

Deferred tax assets and liabilities are not discounted.

Deferred tax assets recognised on tax losses and on

deductible dif ferences are recognised to the extent that it

is probable that future taxable prof its will be available against

which the temporary dif ferences can be utilised.

Tax liabilities include the estimate of risks associated with

uncertainties on the tax treatments adopted for determining

income taxes in accordance with the new IFRIC 23. These

uncertainties can arise from: i) unclear or complex tax rules;

ii) changes in tax regulations or clarif ications by tax authorities;

iii) ongoing tax audits and/or disputes; iv) public information

on ongoing tax assessments and/or disputes involving

other entities.

2.17 Earnings per share

The Group presents the basic and diluted earnings per share.

The basic earnings per share is calculated by dividing

the prof it or loss attributable to holders of the Company shares

by the weighted average of the number of shares for the f inancial

year (def ined as equal to the share capital), adjusted

to consider any treasury shares held. The diluted earnings

per share is calculated by adjusting the prof it or loss attributable

to shareholders and the weighted average of the number

of company shares as def ined above to consider the ef fects

of all potential shares with a dilution ef fect

218 Segment information

For the purposes of IFRS 8 Operating Segments the Groups

business can be classif ied to two operating segments

relati

ng to the Moncler and the Stone Island business aggregated

into a single segment with similar characteristics to those

required by the Standard

2.19 Fair value

IFRS 13 is the only point of reference for the fair value

measurement and related disclosures when such an assessment

is required or permitted by other standards. Specif ically,

the principle def ines 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 standards,

including IFRS 7.

IFRS 13 establishes a hierarchy that classif ies within dif ferent

levels the inputs used in the valuation techniques necessary

to measure fair value. The levels, presented in a hierarchical order,

are as follows:

•

level 1: Fair values measured using quoted prices (unadjusted) in

active markets for identical assets or liabilities;

•level 2: it Fair values measured using inputs other than quoted

prices included within Level 1 that are observable for the asset

or liability, either directly (i.e. as prices) 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 data

(i.e. unobservable inputs).

2.20 Put and call agreements

with minority shareholders

The Group records the f inancial liabilities relating to put options

granted to minority shareholders at the present value of the option

exercise price. On the initial recognition of the liability,

this value is reclassif ied from equity by reducing the minority

share if the terms and conditions of the put option give

the Group access to the economic benef its associated with

the share of the capital option. The Group accounts for this share

as if it had already been purchased in application of the anticipated

interest method. According to IAS 32, the recognised f inancial

liability is equal to the best estimate of the options strike price

and is subsequently remeasured at each closing date in accordance

with IFRS 9 The accounting policy adopted by the Group

provides for the recognition to equity of any change in the value

of the liability