BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

IFRS CONSOLIDATED FINANCIAL STATEMENTS OF GROUPE BPCE AS AT DECEMBER 31, 2019

5.9

PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

Accounting principles This item includes property owned and used in the business, equipment acquired under operating leases, property acquired under finance leases and temporarily unleased assets held under finance leases. Interests in non-trading real estate companies (SCIs) are accounted for as property, plant and equipment. In accordance with IAS 16 and IAS 38, property, plant and equipment and intangible assets are recognized as assets only if they meet the following conditions: it is probable that the company will enjoy future economic • benefits associated with the asset; the cost of the asset can be measured reliably. • Property, plant and equipment and intangible assets used in operations are initially recognized at cost plus any directly attributable acquisition costs. Software developed internally that fulfills the criteria for recognition as a non-current asset is recognized at its production cost, which includes external charges and the payroll costs of employees directly assigned to the project. The component-based approach is applied to all buildings. After initial recognition, property, plant and equipment and intangible assets are measured at cost less any accumulated depreciation, amortization or impairment. The depreciable amount of the asset takes account of its residual value where this is material and can be measured reliably. Property, plant and equipment and intangible assets are depreciated or amortized in order to reflect the pattern in which the asset’s future economic benefits are expected to be consumed by the entity, which generally corresponds to the asset’s useful life. Where an asset consists of a number of

components that have different uses or economic benefit patterns, each component is recognized separately and depreciated over a period that reflects the useful life of that component. The depreciation and amortization periods used by the Group are as follows: buildings: 20 to 60 years; •

internal fixtures and fittings: 5 to 20 years; • furniture and special equipment: 4 to 10 years; •

computer equipment: 3 to 5 years; • software: not more than 5 years. •

Other items of property, plant and equipment are depreciated over their estimated useful life, which generally ranges from five to ten years. Property, plant and equipment and intangible assets are tested for impairment whenever there is any evidence that they may be impaired at the balance sheet date. If this is the case, the revised recoverable amount of the asset is compared to its carrying amount. If the revised recoverable amount of the asset is lower than its carrying amount, an impairment loss is recognized in income. This loss is reversed in the event of a change in the estimated recoverable amount or if there is no longer any evidence of impairment. Equipment leased under operating leases (Group as lessor) is recognized as an asset on the balance sheet under property, plant and equipment.

12/31/2019

12/31/2018 (1)

Accumulated depreciation and impairment

Accumulated depreciation and impairment

Gross amount

Gross amount

Net amount

Net amount

in millions of euros

Property, plant and equipment

11,720

(7,570) (2,167) (5,403)

4,150 2,158 1,993

11,503

(7,508) (2,142) (5,367)

3,995 1,993 2,001

Real estate assets Movable assets

4,324 7,396

4,135 7,368

Property, plant & equipment leased under operating leases

733 733

(255) (255) (568) (556)

478 478

651 651

(227) (227)

424 424

Movable assets

Right of use for lease contracts (1)

2,388 2,352

1,820 1,795

/// /// /// /// ///

/// /// /// /// ///

/// /// /// /// ///

Real estate assets

o/w contracted during the period

138

(24) (12)

114

Movable assets

36

24

o/w contracted during the period

6

(1)

5

TOTAL PROPERTY, PLANT & EQUIPMENT

14,841

(8,393) (2,817)

6,448 1,089

12,154

(7,735) (2,857)

4,419 1,198

Intangible assets Leasehold rights

3,906

4,056

140

(80)

60

389

(222)

166 638 394

Software

2,990

(2,344)

646 383

2,949

(2,312)

Other intangible fixed assets TOTAL INTANGIBLE ASSETS

775

(392)

718

(324)

3,906 1,198 Information as at December 31, 2018 has not been restated to account for the impacts of the first-time application of IFRS 16 “Leases” in accordance with the option offered by (1) this standard. The impacts of the first-time application of IFRS 16 on the balance sheet at January 1, 2019 (right-of-use assets in lessee’s leasing arrangements) are described in Note 2.2. (2,817) 1,089 4,056 (2,857)

266

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

www.groupebpce.com