BPCE_REGISTRATION_DOCUMENT_2017
FINANCIAL REPORT IFRS Consolidated Financial Statements of BPCE SA group as at December 31, 2017
GOODWILL 5.14 Goodwill relatedto operations for the financial year is analyzed inrespect of the note regarding the scope of consolidation.
12/31/2017
12/31/2016
in millionsof euros
Opening netvalue
3,803
3,725
Acquisitions (1)
193
176
Disposals
(4)
Impairment (2)
(66)
(117)
Reclassifications
(24)
Foreign exchange rateadjustments
(202) 3,728
47
Closing netvalue
3,803
The main transactionsduringthe periodthat led to the recognitionof goodwillare as follows: (1)
in accordancewith IFRS 3,“Businesscombinations”,analysisof the accountingtreatmentof the acquisitionof Fidorgroupwas finalizedin 2017.This analysisled to the recognitionof a haircuton ● a portfolioof financialassetsfor -€52 millionnet of deferredtax assetsand liabilitiesand the recognitionof intangibleassetscoveringthe technologicalplatform,the brandand a majorcontract for +€49 millionnet of deferredtax assetsand liabilities.Furtherto the analysis,goodwillon Fidorgroup,whichhad beenassessedon a provisionalbasisat the end of 2016,was adjustedby +€2 millionand amountedto €82 million; Natixis’acquisitionsof PayPlug(€14 million),Dalenys(€72 million),InvestorMutualLimited– IML (€100 million)and AltheliaEcosphere(€3 million). ● Lossesfor the periodconcernthe followingcash-generatingunits (CGUs):BanquePalatine(€53 million)and BPCE International(€13 million).In 2016, impairmentwas recordedon Coface (2) (€75 million)and BanquePalatine(€42 million).
At December 31, 2017, gross goodwill stood at € 4,247 million and total impairment stoodat € 519 million. Certain goodwill items recognized in the United States gave rise to tax amortizationover 15 years, leading to a difference between the
carrying amount of the goodwill and its tax base. This difference in treatment generated a deferred tax liability of € 311 million at December 31, 2017, compared with € 530 million at December 31,
2016 (see Note5.9).
5
Breakdown of goodwill
Carrying amount
12/31/2017
12/31/2016 (1)
in millions of euros BPCE International
28 82
43 80 53 13 14
Fidor AG
BanquePalatine Crédit Foncier
13
Other (2)
4
Othernetworks
127 163
203
SpecializedFinancialServices (2)
64 93
Insurance (1)
93
Equity interests (Coface) Retail Bankingand Insurance Asset & Wealth Management (1) Corporate& Investment Banking
281 664
282 642
2,987
3,074
77
87
TOTALGOODWILL 3,803 Under the new strategicplan,New Dimension,and in line with the creationof the new Insurancebusinessline, the InvestmentSolutionsCGUwas split into two separateCGUs:“Asset& Wealth (1) Management”and “Insurance”.Goodwillrecordedon the InvestmentSolutionsCGU in the amountof €3,093 millionas of December 31,2016was reassignedto the two new CGUs in line with the entitiesto which the goodwillrelated,sinceeachentity is assignedto just one CGU. Goodwillon S-moneytotaling€12 millionwas reassignedto SpecializedFinancialServicesafter this entitywas transferredto Natixisgroup in 2017. (2) 3,728
409
Registration document 2017
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