BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

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

5.10

DEBT SECURITIES

Accounting principles Issues of debt securities not classified as financial liabilities at fair value through profit or loss or through other comprehensive income are initially recognized at fair value less any transaction costs. They are subsequently measured at amortized cost at each balance sheet date using the effective interest method. These instruments are recognized on the balance sheet under “Amounts due to banks”, “Amounts due to customers” or “Debt securities”. Debt securities are classified based on the nature of the underlying, with the exception of subordinated notes presented under “Subordinated debt”. Securities are recorded in the balance sheet on the settlement-delivery date. The first-in, first-out (FIFO) method is applied to any partial disposals of securities, except in special cases. A new category of liabilities eligible for the numerator in the TLAC (Total Loss Absorbing Capacity) calculation has been introduced by French law and is commonly referred to as “senior non-preferred debt”. These liabilities rank between own funds and other senior preferred debt.

12/31/2019

12/31/2018

in millions of euros

Bonds

122,808 79,683

122,468 65,928

Interbank market instruments and negotiable debt securities

Other debt securities

2,266

1,919

Senior non-preferred debt

18,297 223,055

12,468 202,783

Total

Accrued interest

1,557

1,899

TOTAL DEBT SECURITIES

224,611

204,681

The fair value of debt securities is presented in Note 10.

5.11

AMOUNTS DUE TO BANKS AND SIMILAR AND CUSTOMERS

Accounting principles These liabilities, which are not classified as financial liabilities at fair value through profit or loss, are carried at amortized cost under “Amounts due to banks” or “Amounts due to customers”. Issues of debt securities (which are not classified as financial liabilities at fair value through profit or loss or through other comprehensive income) are initially recognized at fair value less any transaction costs. They are subsequently measured at amortized cost at each balance sheet date using the effective interest method. These instruments are recognized on the balance sheet under “Amounts due to banks”, “Amounts due to customers” or “Debt securities”. Temporary sales of securities are recorded on the settlement-delivery date. For repurchase transactions, a loan commitment received is recorded between the transaction date and the settlement-delivery date when such transactions are recorded as “Liabilities”.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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