BIC_Registration_Document_2017
FINANCIAL STATEMENTS Consolidated financial statements
Interest rate risk 24-3 As of December 31, 2017 BIC Group has no significant debt or related hedging instruments. The exposure to interest rate fluctuations on borrowings is very limited. All local funding needs are directly indexed on a variable rate. Borrowers’ positions are insignificant and are of too limited a time scale to require any relevant hedging.
Every day, Group Treasury adjusts the liquidity situation of the current accounts as a result of currency swaps realized on the market. This strategy, even though it uses exchange instruments, cannot be considered as a full foreign exchange risk management hedging program, as there is no definitive translation of bank accounts. It only equates to optimization of funding by SOCIÉTÉ BIC through foreign liquidity management.
Impact of interest rate and foreign exchange risk hedging on the consolidated 24-4 financial statements as of December 31, 2017 The following amounts have been booked as the fair value of derivatives as of December 31, 2017 (in thousand euros):
Net financial income/ (expense) before tax (a) – Note 6
Income from operations – Note 4
Other comprehensive income before tax (a)
Derivative instruments and revaluation
Hedge income qualification/ hedged risk
Current assets (b)
Non-current assets
Current Liabilities
Non-current Liabilities
Hedging revaluation impact
Cash flow hedge/Foreign exchange risk
Commercial flows
396
5,584
30,361
23,488
38
(1,915)
(104)
Net investment/Foreign exchange risk
Dividends
-
-
2,892
2
-
-
-
Subtotal (1)
396
5,584
33,253
23,490
38
(1,915)
(104)
Revaluation of cross-currency
swaps backed by cash positions in foreign currencies
At fair value through P&L/Foreign exchange risk
192 192 588
- -
- -
131 131
- -
(305)
- -
Subtotal (2) TOTAL 1+2
(305)
5,584 (104) This corresponds to mark-to-market of hedging instruments in the portfolio at December 31, 2017, restated for the reversal of the mark-to-market of the portfolio (a) of hedging instruments as of December 31, 2016. Including options not yet exercised held by SOCIÉTÉ BIC representing current assets for 701 thousand euros. (b) 33,253 23,621 38 (2,220)
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BIC GROUP - 2017 REGISTRATION DOCUMENT
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