05 Financial performance 2024 consolidated financial statements 2.4 New standards, amendments to existing standards and interpretations that are not yet effective The following new IFRS standards, amendments and interpretations, which were not applicable at December 31, 2024, are not expected to have a material impact on the consolidated financial statements at their application date: Amendments to IAS 21 – Lack of Exchangeability These amendments, published on August 15, 2023, specify how to assess whether a currency is exchangeable, how to determine the exchange rate for a currency that is not exchangeable, and the related disclosure requirements. Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments These amendments, published on May 30, 2024, clarify the classification of financial assets with environmental, social and corporate governance (ESG) linked features. They also provide clarifications concerning the derecognition of liabilities settled through electronic payment systems. IFRS 18 – Presentation and Disclosure in Financial Statements This standard, published on April 9, 2024, will replace the current IAS 1 – Presentation of Financial Statements and will amend IAS 7 – Statement of Cash Flows. It introduces a defined structure for the income statement, based on three categories of income and expenses (Operating, Investment and Financing) and requires the presentation of two subtotals (Operating income and Income before financing and income taxes). Alternative performance measures are clearly defined and the standard requires their disclosure in a single note to the financial statements. The standard also includes enhanced guidance on the principles of aggregation and disaggregation. There are no other new standards, updates or interpretations published but not yet effective whose impact could be material for the Group. 2.5 Foreign currency 2.5.1 Presentation and functional currency The financial statements of the Group entities are measured using their functional currency, which is the currency of the primary economic environment in which they operate and corresponds for most of them to their local currency. The consolidated financial statements are presented in euros (presentation currency), which is the Company's functional currency. 2.5.2 Transactions Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at the transaction date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the revaluation at closing exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Exchange differences on unconsolidated equity investments are included in other comprehensive income until the investment is sold. 2.5.3 Translation The financial statements of the Group entities whose functional currency is different from the Group's presentation currency are translated into euros as follows: assets and liabilities are translated at the closing rate at the date of the consolidated statement of financial position, income and expenses are translated at the average rate for the period (as it is considered a reasonable approximation to actual rates at the transaction date), and all resulting exchange differences are recognized in other comprehensive income. Cash flows are also translated at the average rate for the period. When an entity is disposed of, the translation differences accumulated in other comprehensive income are recycled to the income statement as part of the gain or loss on disposal. On the acquisition of an entity, goodwill and fair value adjustments recognized are treated as assets and liabilities of the acquired entity and translated at the spot rate on the transaction date. 361 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
RkJQdWJsaXNoZXIy NzMxNTcx