NATIXIS_REGISTRATION_DOCUMENT_2017
5 FINANCIAL DATA
Consolidated financial statements and notes
BASIS OF PRESENTATION
NOTE 1
IFRS standards and 1.1
IFRS 9 defines the new rules for classifying and measuring financial assets, the new impairment methodology for credit risk on financial assets, and hedge accounting, except for macro-hedging, which the IASB is currently studying in a separate draft standard. The following treatmentswill apply to fiscal years beginning as of January 1, 2018, replacing the accounting standards currently used to recognize financial instruments.Pursuant to the transitional provisions of IFRS 9, Natixis does not intend to provide comparativeinformationfor its financialstatements. Classification and Measurement On initial recognition, financial assets were classified at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss. For debt instruments, this depended on how the entity managed its financial instruments(its businessmodel) and the characteristics of their contractual cash flows (Solely Payments of Principal & The entity’s business model represents the way in which it manages its financial assets to produce cash flow. The entity must exercisejudgmentto determinethe businessmodelused. The choice of business model must take into account all information regarding the manner in which cash flows were generated in the past, along with all other relevant information. For example: the way in which the performance of financial assets is a assessedand presentedto the main executiveofficers; risks which have an impact on the business model’s a performance, in particular the way in which these risks are managed; the way in which executive officers are paid (for example, if a pay is based on the fair value of assets under managementor on the contractualcash flows received); the frequency,volumeand purposeof sales. a Moreover,the choiceof businessmodel must be made at a level which reflects the way in which groups of financial assets are managed collectivelywith a view to achieving a given economic objective. The business model is therefore not decided on an instrument-by-instrumentbasis, but rather at a higher level of aggregation,by portfolio. The standarduses three businessmodels: a business model for which the objective is to hold financial a assets in order to receive contractual cash flows (“hold to collect” model); However, classification under this model, under which the concept of “holding” is relatively similar to holding to maturity, remains valid if disposals occur under the followingconditions: the disposalsare due to an increasein credit risk, j the disposals occur just before maturity and at a price that j reflectsthe contractualcash flows that are still owed, Interest– “SPPI”). Business model
IFRIC interpretations applied by the Group
As required by European regulation 1606/2002of July 19, 2002, Natixis has preparedits consolidatedfinancialstatementsfor the year ended December 31, 2017, in accordance with IAS/IFRS standardsand IFRIC interpretationsas adopted by the EuropeanUnion and applicableon that date (1) . Natixis’ consolidated financial statements include a balance sheet, income statement, statement of net income/(loss) and other comprehensive income (previously referred to as the statement of net income/[loss], gains and losses recorded directly in equity), statementof changes in shareholders’equity, cash flow statementand notes to the financialstatements. The financial statements presented for comparative purposes were publishedby Natixis in the 2016 registrationdocumentfiled with the Autorité des Marchés Financiers (AMF – French Financial Markets Authority) on March 21, 2017. In accordance with European regulation 809/2004 relating to information contained in prospectuses,the financial statementsfor the year ended December 31, 2015, that were published in the 2015 registrationdocumentfiled with the AMF on March 10,2016, are incorporatedfor referenceinto this registrationdocument. Texts in force since January 1, 2017 The amendmentto IAS 7 “Statementof Cash Flows” entitled a “Disclosure Initiative” adopted by the European Commission on November 6, 2017, with mandatory application from January 1, 2017, to Natixis’ financial statements. This amendment is intended to enhance the disclosures made regarding changes in debt arising from financing activities, whether or not these changes result from cash flows. This amendmenthad no impacton Natixis’financialstatements; The amendment to IAS 12 “Income Taxes” entitled a “Recognition of deferred tax assets for unrealized losses” adopted by the European Commissionon November 6,2017, with mandatory application from January 1, 2017, to Natixis’ financialstatements.This amendmentis intendedto clarify the accountingon deferredtax assetsfor unrealizedlosseson debt instrumentsmeasured at fair value. This amendment had no impacton Natixis’financialstatements; Natixis did not opt for early application of the following standards adopted by the EuropeanUnion at December 31, 2017, but whichhad not yet enteredinto force: The new standard, IFRS 9 “Financial instruments,” was a adopted by the EuropeanCommissionon November 22,2016 and will be applicable retrospectively as of January 1, 2018. However, as permitted by the standard, Natixis has opted for early applicationof the provisions relating to financial liabilities designated at fair value through profit or loss in Natixis’ financialstatementsas of January 1,2016 (see below).
The complete body of standards adopted by the European Union may be consulted on the European Commission website at: (1) http://ec.europa.eu/finance/company-reporting/ifrs-financial-statements/index_fr.htm.
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Natixis Registration Document 2017
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