BIC_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Consolidated financial statements

DEFERRED TAX NOTE 13

Accounting policies Deferred tax is recognized on temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases, for using the balance sheet liability method and tax rates enacted or nearly enacted at the balance sheet date. Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that the profits will be available against which deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary differences arise from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognized for taxable temporary differences arising from investments in subsidiaries and associates, and interests in joint ventures and branches, except when the Group is able to control the reversals of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. The carrying amount of deferred taxes is reviewed at each balance sheet date. Deferred tax assets are only recognized to the extent that it appears probable that the Group will generate future taxable profits against which these tax assets will be able to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the periods when the liability is settled or the asset realized. Deferred tax is charged or credited to profit or loss in the period, except when it relates to a transaction or an event directly credited or charged to equity, in which case the deferred tax is also recognized in equity. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

Dec. 31, 2016

Dec. 31, 2017

(in thousand euros)

Deferred tax assets

174,669 (51,358) 123,311

140,637 (48,593) 92,044

Deferred tax liabilities

NET POSITION

The movement for the year in the Group’s deferred tax position was as follows:

Notes

Dec. 31, 2017

(in thousand euros)

At January 1, 2017

123,311

Deferred tax income/(expense) for the period  (a)

11,754

Booked in Shareholders‘ equity

(29,389) (14,014)

Exchange differences

Reintegration of assets held for sale at December 31, 2016 not sold in 2017

382

At December 31, 2017

92,044

Notes

Dec. 31, 2016

(in thousand euros)

At January 1, 2016

111,251

Deferred tax income/(expense) for the period  (a)

CF

21,835

Booked in Shareholders‘ equity

6,984

Transfers to non-current assets held for sale (see Note 20)

20

(18,692)

Exchange differences

1,933

At December 31, 2016

123,311

Excluding amounts booked to provision for risks and charges. (a)

191

BIC GROUP - 2017 REGISTRATION DOCUMENT