between what was estimated and what happened) and the effect of changes in actuarial assumptions. The expected return on plan assets is determined using discount rates applied to measure the defined benefit obligation. The difference between the expected return and the actual return on plan assets is recognised in gains and losses recognised directly in non-recyclable equity. Past service cost, arising from a change to or curtailment of a scheme, is recognised immediately in profit or loss at the time the change or curtailment takes effect. The amount of the provision is equal to: - the present value of the defined benefit obligation as of the balance sheet date, calculated using the actuarial method recommended by IAS 19 - less, if applicable, the fair value of the assets allocated to cover these commitments. These may be represented by an eligible insurance policy. In the event of the obligation being fully covered by a policy that corresponds exactly, both as regards amount and period, to all or part of the benefits payable under the plan, the fair value of the policy is deemed to be the value of the corresponding obligation, (i.e. the amount of the corresponding actuarial liability). Defined contribution plans Companies with employees contribute to various mandatory pension schemes. The funds are managed by independent organisations and the contributing companies have no legal or constructive obligation to pay additional contributions if the funds have insufficient assets to cover all benefits corresponding to services rendered by employees during the year and in previous years. As a result, CFM Indosuez Wealth has no liability in this respect other than the contributions payable for the past financial year, which constitute the expenses for the financial year. OTHER LONG-TERM EMPLOYEE BENEFITS Other long-term benefits are those other than postemployment benefits or termination benefits that are to be paid to employees but are not due in full in the twelve months following the end of the period in which the corresponding services were rendered. These include, in particular, bonuses and other deferred remuneration payable twelve or more months after the end of the period in which they were accrued, but which are not share-indexed. The method of assessment is similar to the one used by the Group for post-employment benefits categorised as defined-benefit plans. TAX ON PROFITS (IAS 12) In accordance with IAS 12, tax on profits includes all income taxes, whether current or deferred. As a reminder, IAS 12 requires that current and deferred tax assets and liabilities be measured using tax rates that have been enacted or substantively enacted. In France, a bill is virtually adopted following a vote in favour by the National Assembly and the Senate and after approval by the Constitutional Council, or as soon as the time limit for referral to the Constitutional Council has expired. It is therefore appropriate to assume that the corporate tax rate in France will remain at 25.83% for the purpose of measuring deferred tax liabilities and assets as at 31 December 2025. Taxes payable IAS 12 defines current tax as "the amount of income tax payable (recoverable) in respect of taxable profit (tax loss) for a period". Taxable profit is the profit (or loss) for a financial year determined in accordance with the rules laid down by the tax authorities, on the basis of which income tax must be paid (recovered). The applicable rates and rules used to determine the current tax liability are those in effect in each country where the Group’s companies are established. The current tax liability includes all taxes on income, payable or recoverable, for which payment is not dependent on the completion of future transactions, even if payment is spread over several years. The current tax liability must be recognised as a liability until it is paid. If the amount that has already been paid for the current year and previous years exceeds the amount due for those years, the surplus must be recognised under assets. When tax credits on income from securities portfolios and amounts receivable are effectively used to pay corporate income tax due for the year, they are recognised under the same heading as the income to which they relate. The corresponding tax charge continues to be recognised under “Income tax” in the Income Statement. CFM Indosuez Wealth Management 92
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