NATIXIS_REGISTRATION_DOCUMENT_2017

5 FINANCIAL DATA

Consolidated financial statements and notes

IFRS 5 was maintained as the completion of the sale was outsideof Natixis’control. A discontinuedoperationis a clearly identifiablecomponentof an entity that either has been disposedof, or is classifiedas held for sale, and: represents a separate major line of business or geographic a area of operations; is part of a single coordinated plan to dispose of a separate a major line of businessor geographicarea of operations; or is a subsidiaryacquiredexclusivelywith a view to resale. a Assets and liabilities relating to discontinued operations are accountedfor in the balancesheet in the sameway as groups of assets held for sale. Gains or losses from these operations are presented on a separate line of the income statement and include the post-tax gain or loss resulting from operations discontinued before disposal and from the sale or valuation of assets or disposal groups held for sale at fair value less costs to sell. Financial liabilities at fair value 5.10 through profit or loss These include financial liabilities held for trading (including derivative financial instruments)and those designated as at fair value on initial recognitionpursuant to the option availableunder IAS 39. The conditionsfor applying IAS 39were describedin the amendmentto the standardpublishedin June 2005. Financial liabilities in this category are carried at fair value at the reporting date and shown in the balance sheet as “Financial liabilitiesat fair value throughprofit or loss”. Changesin fair value are recognized in income for the period under “Net gains or losses on financial instruments at fair value through profit or loss”, except for changes in fair value attributableto own credit risk on financial liabilities at fair value through profit or loss, as such recognition does not create or increase an accounting mismatch. These are recognized in “Revaluation of own credit risk on financialliabilitiesdesignatedat fair value throughprofit or loss” under “Gains and losses recognized directly in other comprehensive income” in accordance with IFRS 9, for which this component was applied early by Natixis as of January 1, 2016 (see the Statementof changesin shareholders’equity) . In the event of early redemptionof financial liabilitiesdesignated at fair value through profit or loss, realized fair value gains or losses attributableto own credit risk are directlytransferredfrom “Revaluationof own credit risk on financial liabilities designated at fair value through profit or loss” to “Consolidatedreserves” under equity. Debt 5.11 Debt originated by Natixis that is not classified within financial liabilitiesat fair value throughprofit or loss is measuredusing the amortized cost method and recognized in the balance sheet under “Deposits from banks”, “Customer deposits”, “Debt securitiesin issue”or “Subordinateddebt”. On initial recognition,debt securitiesare measuredat their issue price including transaction costs. They are subsequently measured at amortized cost, with issue expenses recognized over the termof the instrumentsused.

Gains or losses on disposals Gains or losses on disposals of assets used in the business are recognized in the income statement under “Gains or losses on other assets”,while gains and losses on disposalsof investment property are recorded within “Income from other activities” or “Expensesfromother activities”. Scrapping or discontinuation of fixed assets under construction The expense incurred from the scrapping of a fixed asset is booked to “Depreciation, amortization and impairment of property, plant and equipment and intangible assets” on the consolidatedincomestatement. The discontinuationof IT projects under developmentresults in their derecognition. A corresponding expense is posted to “Gains or losses on property,plant and equipmentand intangible assets”on the consolidatedincomestatement. A non-currentasset (or group of assets) is meant to be disposed of when its book value is recovered by means of a sale. This asset (or group of assets) must be immediatelyavailable for the sale, and it must be highly likely that the sale will happenwithin twelvemonths. A sale is highly likely if: a plan to sell the asset (or group of assets) involving active a marketingis made by management; a non-binding offer has been submitted by at least one a potentialbuyer; it is unlikelythat significantchangeswill be made to the plan or a that it will be withdrawn. The relevantassets are classifiedin the “Non-currentassets held for sale” line item and cease to be amortizedas soon as they are reclassified.An impairmentloss is recognizedif their book value is higher than their fair value less costs to sell. Associated liabilities are also identified on a separate line of the balance sheet. If the disposal has not taken place within twelve months of classification in “Non-current assets held for sale”, the asset ceases to be classified in this category, barring special circumstancesindependentof Natixis’control. At December 31, 2016, Natixis had entered into a sale agreement related to one of its life insurance portfolios and securities representing these commitments.The completion of this sale was subject to approvalby the ACPR (FrenchPrudential Supervisory Authority). Securities representing insurance commitments initially recognized as “Available-for-salefinancial assets” and “Financial assets and liabilities under the fair value through profit or loss option” were reclassified as “Non-current assets held for sale”. In accordancewith IFRS 5, the reclassified securitieswere valued accordingto the provisionsof IAS 39 and the technical provision of insurance commitments was discounted. At December 31, 2017, since Natixis had not yet obtainedthe above-mentionedapproval,their classificationunder Non-current assets held for sale and 5.9 discontinued operations

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Natixis Registration Document 2017