Moncler Group | Annual Report 2024 Separate Financial Statements 434 Moncler Group | Annual Report 2024 Separate Financial Statements 435

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

a

mounts in the Company’s f inancial statements. Current

and

deferred tax assets and liabilities are of fset when income

t

axes 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

ar

e expected to be enforced when the related deferred income

t

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

D

eferred 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

a

gainst 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.

2.14 Foreign currency

The amounts included in the f inancial 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 ef fect at the transaction date. The assets and liabilities

denominated in foreign currencies at the reporting date

are

translated at the exchange rate prevailing at that date

Exchange dif ferences arising from the conversion

or settlement of these items due to dif ferent rates used

from the time of initial recognition are recorded in

the income statement

2.15 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

fo

r the sale of an asset or the amount paid to settle a liability

i

n 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

q

uoted 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).

2.16 Accounting standards and recently

published interpretations

Accounting standards, amendments

and interpretations effective from 1 January 2024

The adoption of these amendments had no impacts on the

Company f inancial statements.

The changes introduced to IAS 12 relating to the recognition

of deferred taxation on leasing contracts had no impact

since t

he Company had already previously recognised these ef fects.

New standards and interpretations not yet effective

and not early adopted by the Group

At the date when these annual f inancial statements were prepared,

the European Union's competent authorities concluded

the approval process needed for the adoption of the accounting

standards and amendments described below. With reference

of the applicable principles, the Group has decided not to exercise

the option of the early adoption, if applicable.

TITLE Issued date Effective date Endorsment date EU regulation

and date of publication

Lack of Exchangeability

(Amendment to IAS 21)

August 2023 1 January 2025 12 November 2024(EU) 2024/2862

13 November 2024

TITLE Issued date Effective date Endorsment date EU regulation

and date of publication

Lease liability in a sale

and leaseback

(Amendments to IFRS 16)

September 2022 1 January 2024 20 November 2023(EU)

2023/2579

21 November 2023

Classif ication of liabilities as current

or non-current (Amendments

to IAS 1) and non-current liabilities

with covenants (Amendments

to IAS 1)

January 2020

October 2022

1 January 2024 19 December 2023(EU)

2023/2822

20 December 2023

Supplier Finance Arrangements

(Amendments to IAS 7

and IFRS 7)

May 2023 1 January 2024 15 May 2024(EU)

2024/1317

16 May 2024