BPCE - 2019 Universal Registration Document

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FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

Accounting principles and methods Note 2

2.1

MEASUREMENT AND PRESENTATION

2.4

PRINCIPLES APPLICABLE TO BANKING

METHODS BPCE’s parent company financial statements are prepared and presented in accordance with rules that comply with Regulation No. 2014-07 of the Autorité des normes comptables (ANC – French Accounting Standards Authority). 2.2 There were no changes to accounting methods in respect of the 2019 fiscal year. The texts adopted by the ANC that had mandatory application in 2019 did not have a significant impact on the parent company financial statements. Unless otherwise stated, BPCE did not elect to apply in advance the texts adopted by the ANC for which application is optional. MEASUREMENT METHODS The financial statements for the fiscal year are presented in identical format to those for the previous fiscal year. Generally accepted accounting principles have been applied in compliance with the principle of prudence based on the following principles: the going-concern principle; • consistency of accounting methods from one period to the • next; independence of fiscal years; • and observance of the general rules governing the preparation and presentation of annual financial statements. The basic method for valuing accounting entries is the historical cost method and all balance sheet items are presented, as appropriate, net of amortization, provisions and allowances for impairment. Specific accounting principles are presented in the Notes to which they refer. CHANGES IN ACCOUNTING METHODS ACCOUNTING PRINCIPLES AND 2.3

RESOLUTION MECHANISMS The terms and conditions governing the establishment of the deposit and resolution guarantee fund were amended by the Ministerial Order of October 27, 2015. For the Guarantee Fund in respect of cash, collateral and securities deposits, the cumulative amount of contributions made by the Group represented a non-material amount. Contributions (which are non-refundable in the event of a voluntary withdrawal of authorization) had no material impact on BPCE’s financial statements. Contributions paid in the form of partner or association certificates and cash security deposits recognized as assets in the balance sheet were not material. The resolution fund was set up in 2015 in accordance with European directive 2014/59/EU (Bank Recovery and Resolution Directive), which established a framework for the recovery and resolution of banks and investment firms, i.e. European Regulation 806/2014 (Single Resolution Mechanism (SRM) Regulation). As of 2016, it became the Single Resolution Fund (SRF), formed by the Member States participating in the Single Supervisory Mechanism (SSM). The SRF is a financing mechanism available to the resolution authority (Single Resolution Board) for the implementation of resolution procedures. The Single Resolution Board set the level of contributions for 2019 in accordance with Delegated Regulation 2015/63 and Implementing Regulation 2015/81 supplementing BRRD on ex-ante contributions to bank resolution financing mechanisms. The amount of contributions made available for the fiscal year totaled €49.6 million, of which €42.2 million recognized as an expense and €7.4 million in cash security deposits recognized as assets in the balance sheet (15% of funds in cash security deposits). The cumulative amount of contributions recognized as assets on the balance sheet totaled €22.2 million at December 31, 2019.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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