BPCE - 2018 Registration document
5 FINANCIAL REPORT
IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2018
The ineffective portion of the hedge is recorded in the income statement under “Net gains or losses on financial instruments at fair value through profit or loss”, see Note 4.3. The “Cash flow hedges” reserve corresponds to the effective portion of hedges not due and the balance of hedges that are due and
remaining to be recognized, before tax, including the portion attributable to non-controlling interests. Recycling from “Cash flow hedges” to income is included either in net interest income or in income on derecognition of the hedged item in the same way as the line impacted by the hedged item.
Cash flow hedges – Details of other items recognized in other comprehensive income
Reclassification of the effective portion in income
Hedged item partially or fully extinguished
Change in the effective portion
01/01/2018
12/31/2018
in millions of euros
Amount of equity for cash flow hedging
(495) (495)
22 22
59 59
6 6
(408) (408)
TOTAL
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME 5.4
Accounting principles Financial assets at fair value through other comprehensive income are initially recognized at fair value, plus any transaction costs. Debt instruments measured at fair value through other comprehensive income recyclable to income On the balance sheet date, these instruments are carried at their fair value and changes in fair value (excluding accrued interest) are recorded under ”Gains and losses recognized directly in other comprehensive income recyclable to income” (as the foreign currency assets are monetary assets, changes in the fair value of the foreign currency component affect income). The principles used to determine fair value are described in Note 10. These instruments are subject to IFRS 9 impairment requirements. Information about credit risk is provided in Note 7.1. If they are sold, these changes in fair value are taken to income. Interest income accrued or received on debt instruments is recorded under “Interest and similar income” based on the Effective Interest Method. This method is described in Note 5.5 – Assets at amortized cost. Equity instruments measured at fair value through other comprehensive income not recyclable to income On the balance sheet date, these instruments are carried at their fair value and changes in fair value are recorded under “Gains and losses recognized directly in other comprehensive income not recyclable to income” (as the foreign currency assets are not monetary assets, changes in the fair value of the foreign currency component do not affect income). The principles used to determine fair value are described in Note 10. The designation at fair value through other comprehensive income not recyclable to income is an irrevocable option that is applied on an instrument-by-instrument basis only to equity instruments not held for trading purposes. Realized and unrealized losses continue to be recorded in other comprehensive income with no impact on income. These financial assets are not impaired. In the event of disposal, these changes in fair value are not transferred to income but are taken directly to retained earnings. Only dividends affect income when they correspond to a return on investment. They are recorded in “Net gains or losses on financial instruments at fair value through other comprehensive income”.
12/31/2018
01/01/2018
in millions of euros
Loans and receivables
26
27
Debt securities
37,382
32,890
2,680
2,529
Shares and other equity securities (1)
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
40,088
35,446
o/w impairment for expected credit losses (2)
(67)
(57) 368 390
93
o/w gains and losses recognized directly in other comprehensive income (before tax) (3)
Debt instruments - Equity instruments -
112 (19)
(22) Equities and other equity securities include strategic equity interests and certain long-term private equity securities. As these securities are not held for sale, their classification as equity instruments (1) designated at fair value through other comprehensive income is appropriate. Details are provided in Note 7.1.1. (2) Including the portion attributable to non-controlling interests (-€15 million in fiscal year 2018, compared with €6 million at January 1, 2018). (3)
298
Registration document 2018
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