BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

IFRS CONSOLIDATED FINANCIAL STATEMENTS OF BPCE SA GROUP AS AT DECEMBER 31, 2020

12/31/2020

12/31/2019

Accumulated depreciation and impairment

Accumulated depreciation and impairment

Gross amount

Net amount

Gross amount

Net amount

in millions of euros

Property recognized at historic cost TOTAL INVESTMENT PROPERTY

194

(129)

65 65

215

(142)

73 73

Investment property held by the insurance subsidiaries is reported with insurance investments (see Note 9). The fair value of investment property came to €105 million at December 31, 2020 (€112 million at December 31, 2019).

The fair value of investment property is classified in Level 3 of the fair value hierarchy in accordance with IFRS 13.

PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

5.9

Accounting principles This item includes property owned and used in the business, equipmentacquiredunder operating leases, propertyacquired 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 equipmentand intangibleassets are recognizedas 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 recognitionas a non-currentasset is recognized at its production cost, which includes external charges and the payroll costs of employeesdirectly 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 depreciationand amortizationperiods 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 equipmentare depreciated over their estimated useful life, which generally ranges from five to ten years. Property, plant and equipment and intangible asseatsre tested for impairmentwhenever 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 reversedin 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.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE