BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

5.4

FOREIGN CURRENCY TRANSACTIONS

Accounting principles Gains and losses on foreign currency transactions are determined in accordance with ANC Regulation No. 2014-07. Receivables, liabilities, and off-balance sheet commitments denominated in foreign currencies are measured at the exchange rate prevailing at the balance sheet date. Realized and unrealized foreign exchange gains and losses are recognized in the income statement. Income and expenses paid or received in foreign currencies are recognized at the exchange rate prevailing at the transaction date. Fixed assets and investments in associates denominated in foreign currencies but financed in euros are recognized at acquisition cost. Non-settled spot foreign exchange transactions are measured at the exchange rate prevailing at the balance sheet date. Discounts or premiums on foreign exchange forward contracts used for hedging purposes are recognized in the income statement on a pro rata basis. Other foreign exchange contracts and forward and futures instruments denominated in foreign currencies are marked to market. Outright foreign exchange forward contracts, and those hedged by forward and futures instruments, are restated over the remaining term. Foreign exchange swaps are recognized as pairs of spot purchase/forward sale transactions. Currency swaps are subject to the provisions of ANC Regulation No. 2014-07.

12/31/2019

12/31/2018

in millions of euros

Spot foreign exchange transactions Currencies receivable not received Currencies deliverable not delivered

116 116 232

13 13 26

TOTAL

Other information Note 6

CONSOLIDATION 6.1 In reference to Article 4111-1 of ANC Regulation No. 2014-07, and in accordance with Article 1 of CRC Regulation No. 99-07, BPCE prepares its consolidated financial statements under international accounting standards. Its individual company financial statements are incorporated in the consolidated financial statements of Groupe BPCE and BPCE SA group. AND COMMITMENTS Total remuneration paid in 2019 to members of the Management Board amounted to €3.8 million and €0.3 million was paid to members of the Supervisory Board. Provisions for retirement bonuses for fiscal year 2019 amounted to €3 million for members of the Management Board. REMUNERATION, RECEIVABLES, LOANS 6.2

have not entered into an administrative assistance agreement with France for the exchange of information with the aim of combating tax fraud and tax evasion. These obligations are part of the broader worldwide goal of combating non-cooperative tax havens, which were defined at OECD meetings and summits, and are also designed to prevent money laundering and terrorist financing. Since its foundation, Groupe BPCE has adopted a prudent approach. It ensures that entities belonging to its networks are regularly informed about updates to the OECD list of territories that are considered as non-cooperative when it comes to exchanging information for tax purposes, and about the potential consequences of maintaining operations in non-cooperative territories. In addition, lists of non-cooperative territories have been integrated, in part, into software packages used to prevent money laundering with the objective of ensuring appropriate due diligence for transactions with non-cooperative countries and territories (implementation of Ministerial Decree No. 2009-874 of July 16, 2009). A central inventory of the Group’s locations and activities in non-cooperative territories has been drawn up for the information of executive bodies. This statement is based on the list of countries given in the April 8, 2016 Ministerial Decree, taken in accordance with Article 238-0-A of the French General Tax Code. At December 31, 2019, BPCE had no offices or activities in non-cooperative tax havens.

6.3

OPERATIONS IN NON-COOPERATIVE

COUNTRIES

The provisions of Article L. 511-45 of the French Monetary and Financial Code and the Order of October 6, 2009, issued by the French Economy Minister, require credit institutions to disclose, in the notes to their annual financial statements, information on their presence and activities in countries and territories that

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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