BPCE - 2018 Registration document

FINANCIAL REPORT IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2018

ACCRUED EXPENSES AND OTHER LIABILITIES 5.12

12/31/2018

01/01/2018

in millions of euros

Collection accounts Prepaid income Accounts payable

1,499

1,501

327

304

1,233 2,844 5,903

1,177 3,575 6,556

Other accruals

Accrued expenses and other liabilities

Settlement accounts in credit on securities transactions

403

310

Other accounts payable

14,017 14,420 20,323

12,487 12,797 19,353

Other liabilities

TOTAL ACCRUED EXPENSES AND OTHER LIABILITIES

PROVISIONS 5.13

Accounting principles Provisions other than those relating to employee benefit commitments and similar, regulated home savings products, off-balance sheet commitments, and insurance policies mainly consist of provisions for restructuring, claims and litigation, fines and penalties, and tax risks. Provisions are liabilities of which the timing or amount is uncertain, but which can be reliably estimated. They correspond to current obligations (legal or implicit), resulting from a past event, and for which an outflow of funds will probably be necessary to settle them. The amount recognized in provisions is the best estimate of the expense required to extinguish the present commitment at the balance sheet date. Provisions are discounted when the impact of discounting is material. Changes in provisions are recognized in the income statement on the line items corresponding to the nature of the future expenditure.

5

Reversals unused

Other changes (1)

12/31/2018

01/01/2018

Increase

Use (93) (14) (27)

in millions of euros

Provisions for employee benefit commitments (2)

904

138 344 153 289

(50) (16) (63)

(77)

822 360

Provisions for restructuring costs (3)

45

1

Legal and tax risks (4)

1,128

20 (8)

1,211

Loan and guarantee commitments

245

(343)

183

Provisions for regulated home savings products

3

3

Other operating provisions TOTAL PROVISIONS

676

147

(139) (273)

(215) (687)

(1)

469

3,002 3,048 Other changes include revaluation differences on defined-benefit retirement plans (-€40 million before tax), the impact of the reclassification of the BPCE International entities as liabilities held for (1) sale (-€56 million) and translation adjustments for +€45 million. O/w €757 million for post-employment defined-benefit plans and other long-term employee benefits (see Note 8.2.1). (2) At December 31, 2018, provisions for restructuring costs notably included: (3) €316 million for the integration of Crédit Foncier’s activities and the reorganization of its expertise throughout Groupe BPCE; ● €15 million for the employment protection plan for BPCE International; ● €11 million for the COFACE plan (€31 million at December 31, 2017). ● Provisions for legal and tax risks included €543 million for the net insurance exposure on the Madoff fraud. The provision for Madoff net outstandings totaled €389 million at December 31, 2017. (4) 1,071 (65)

463

Registration document 2018