BPCE - 2020 Universal Registration Document

FINANCIAL REPORT

BPCE PARENT COMPANY ANNUAL FINANCIAL STATEMENTS

4.4

EQUITY INTERESTS, AFFILIATES AND OTHER LONG-TERM INVESTMENTS

Accounting principles Investments in associates and affiliates

Other long-term investments Other long-term investmentsare securities acquired with the intention of promoting the development of lasting business relationships, by creating special ties with the issuer, without taking an active part in its management due to the small percentage of voting rights that the investment represents. Other long-term investments are recognized at acquisition cost, less transaction costs. They are included in the balance sheet at the lower of historical cost or value in use. Value in use is determined for listed and unlisted securities based on the amount the company would agree to pay to obtain the securities,given its investment objective, if it were to acquire them. An impairment charge is recognized for any unrealized capital losses. Unrealized capital gains are not recognized. Securities classified as other long-term investmentsmay not be transferred to any other accounting category.

Securities falling into this categoryare securitieswhich, if held over the long term, are deemed useful for the company’s operations, mainly by allowing the company to exercise significant influence or control over the administrativebodies of the issuing companies. Investments in associates and affiliates are recorded at cost, including transaction costs, if the amounts are significant. They are individually measured at the balance sheet date at the lower of acquisition cost or value in use. Value in use is determined, in particular, on the basis of criteria such as the strategic nature of the investment, the intentiotno support the business or retain the investment, share price performance, net assetsor restatednet assets, and forecasts.Impairmentis recognized for any unrealized capital losses, calculated for each line of securities,and is not offset with unrealizedcapital gains. Unrealized capital gains are not recognized. Securities recorded under investments in associates and affiliates cannot be transferred to any other accounting category.

4.4.1

CHANGES IN EQUITY INTERESTS, INVESTMENTS IN AFFILIATES AND LONG-TERM INVESTMENTS

12/31/2019

Increase

Decrease

Conversion Other changes

12/31/2020

in millions of euros

Equity interests and other long-term investments

4,038

37 24

(91)

(100)

1,615

5,499

Investments in affiliates

27,639

(1)

0

(1,789)

25,873

o/w current account advances & perpetual deeply subordinated notes

5

2,821

0

(1)

(93)

0

2,727

Gross amount

31,677

61

(92)

(100)

(174)

31,372

Equity interests and other long-term investments

(430)

(17)

22

0 0

(10)

(435)

Investments in affiliates

(5,826)

(1,892)

541

10

(7,167)

o/w current account advances & perpetual deeply subordinated notes

(5)

0

2

0 0

0 0

(3)

Impairment

(6,256) 25,421

(1,909) (1,848)

563 471

(7,602) 23,770

TOTAL

(100)

(174)

553

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE