Groupe Renault - 2020 Universal Registration Document

398 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 Find out more at group.renault.com 04 CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS subject to a tax inspection or preliminary audit. No assigned tax receivables remained in the balance sheets at December 31, 2020. The assigned receivables are derecognized when the associated risks and benefits are substantially transferred, as described in note 2-P. The Automotive segments assign their dealership receivables to the Sales financing segment. The total dealership receivables transferred to the Sales financing segment principally concerns the Groupe Renault. The amounts are presented in note 15-D. Automotive segments financing by reverse factoring programs The accounting treatment for these programs is described in note 2-P Assignment of receivables and reverse factoring. At December 31, 2020, reverse-factoring programs concerned €26 million of financial liabilities (€44 million at December 31, 2019). FINANCIAL INSTRUMENTS BY CATEGORY, FAIR VALUE AND IMPACT ON NET INCOME NOTE 24 Financial instruments by category and fair 24 - A - value by level IFRS 9 defines three categories of financial instruments: financial assets at fair value through other components of P comprehensive income; financial assets at fair value through profit or loss; P loans and receivables carried at amortized cost. P The following breakdown by level of fair value is presented for financial instruments carried in the balance sheet at fair value: level 1: instruments whose fair values are derived from quoted P prices in an active market; fair value is generally identical to the most recent quoted price; level 2: instruments whose fair values are derived from observable P market prices and are not included in level 1; level 3: instruments whose fair values are derived from P unobservable inputs on the market; the fair value of investments in non-controlled entities is generally based on the share of net assets. Fair values have been determined on the basis of information available at the end of the year and do not therefore take account of subsequent movements. In 2020, no financial instruments were transferred between level 1 and level 2, or into or out of level 3. FINANCIAL ASSETS AND OTHER ASSETS (€ million) Notes December 31, 2020 Balance sheet value Fair value of financial assets at amortized cost Fair value level of financial assets at fair value Total Fair value through profit and loss Fair value through equity Amortized cost Equity instruments valued under the applicable standard Sales Financing receivables 15 40,820 - - 40,820 40,645 (1) 3 Automotive customer receivables 16 910 - - 910 (2) Tax receivables (including current taxes due) 17 1,951 - - 1,951 (2) Other receivables and prepaid expenses 17 2,680 - - 2,680 (2) Derivatives on operating transactions of the Automotive segments 17 31 8 23 - 2 Derivatives on financing operations of the Sales Financing segment 17 230 196 34 - 2 Investments in unconsolidated controlled entities 17 91 - 91 Daimler shares 22 951 951 1 Other investments in non-controlled entities 22 46 46 - 3 Marketable securities and negotiable debt instruments 22 426 94 332 - 1 Derivatives on financing operations of the Automotive segments 22 393 393 - - 2 Loans and other 22 618 - - 618 (2) 3 Cash and cash equivalents 22 21,697 8,709 380 12,608 (2) 1 & 3 TOTAL FINANCIAL ASSETS AND OTHER ASSETS 70,844 9,446 1,720 59,587 91 The fair value of sales financing receivables is estimated by discounting future cash flows at rates that would be applicable to similar loans (conditions, maturity and debtor (1) quality) at the year-end. Receivables with a term of less than one year are not discounted, as their fair value does not differ significantly from their net book value. This is a level 3 fair value, as it uses recognized models for which certain significant data, such as the credit risk associated with the portfolio of receivables, are not based on observable market data. The Group does not report the fair value of financial assets such as Automotive customer receivables, tax receivables or cash and cash equivalents because their net book (2) value after impairment is a reasonable approximation of their fair value.