NATIXIS_REGISTRATION_DOCUMENT_2017

5 FINANCIAL DATA

Consolidated financial statements and notes

In the event of the loss of control of a consolidatedsubsidiary, any retainedequity share is measuredat fair value and the gains or losses on disposal are recognizedamong “Gains or losses on other assets”in the consolidatedincomestatement. Gains or losses on disposalsof associatesare presentedamong “Gains or losses on other assets” in the consolidated income statement. Treatment of put options granted 2.4 to minority shareholders The granting of put options to minority shareholdersby Natixis has no impacton the determinationof Natixis’controllinginterest in the subsidiary in question as long as the option is not exercised, unless Natixis also holds an immediately exercisable call option. The granting of put options to minority shareholders has no impact on Natixis’ percentage of ownership in the subsidiary in questionunless the put option is associatedwith Natixis holding a call option, and the call and put options give immediate entitlementto the economicbenefits attached to the underlying shares. The granting of put options to minority shareholderswhich do not transfer to Natixis the risks and benefits associatedwith the underlyingshares prior to exercise, result in the recognitionof a liability for the estimated present value of the option’s exercise price. The corresponding receivable is booked to equity, deducted in part from minority interests in the amount of their book value, with the rest deducted from consolidated reserves (Group share). Subsequent changes in the liability related to adjustmentsto the exercise price of the put option are recorded in consolidatedreserves(Groupshare). Income generatedfrom minority interests subject to put options are presented in “Net income/(loss for the period – share attributable to minority interests” on the consolidated income statement. Business combinations and goodwill 2.5 The following accounting treatment is applied to business combinationsgiving rise to control: IFRS 3 before revision if they are prior to January 1, 2010, a except for those that occurredbefore January 1,2004. On the initial applicationdate of IFRS, Natixis chose the option offered by IFRS 1 “First-TimeAdoption” to not retrospectivelyrestate businesscombinationspreviousto January 1, 2004pursuantto IFRS 3; revised IFRS 3 (IFRS 3R) if they occur after January 1, 2010. a IFRS 3Rcan be appliedprospectivelyto businesscombinations if their acquisitiondate is the same or later than the adoption date of IFRS 3R. In accordance with IFRS 3 (pre- or post-revision), business combinationsare recorded using the acquisitionmethod. Under the acquisition method, the identifiable assets and liabilities of the acquired entity are measured at their fair value at the valuationdate.

The method used to measure minority interests and goodwill varies dependingon whetherIFRS 3or IFRS 3Ris applied. Application of IFRS 3 to business combinations carried out a beforeJanuary 1, 2010: minority interestsare determinedbased on their share in the j identifiable net assets of the acquired entity, measured at their fair value at the purchasedate (partialgoodwill method); goodwill is the differencebetween the cost of the business j combinationand the share of the purchasingentity’s interest in the net fair value of identifiable assets, liabilities and contingentliabilities. Application of IFRS 3R to business combinations carried out a after January 1, 2010: for each business combination, Natixis chose to determine j minorityinterests: either based on their share in the identifiablenet assets of j the acquired entity, measured at their fair value at the purchase date, and thereforewithout recognizinggoodwill on the minorityinterests(partialgoodwillmethod), or based on their fair value at the purchase date, resulting j in the recognitionof goodwill,both for the group share and the minorityinterests(full goodwillmethod); Hence, goodwill is a residual item determined as the j differencebetween(i) the sum of the purchaseprice, the fair value at the purchasedate of the share of interestheld in the acquiredentity prior to the purchasedate, and the amountof minority interests (determined using the partial or full goodwill method) and (ii) the net amount of the assets and liabilities assumed, measured at their fair value at the purchasedate. Positivegoodwillis recordedon a separateline on the asset side of the balance sheet if it relates to a controlled entity. It is allocated at the purchase date to one or more cash-generating units (CGUs) expected to benefit from the acquisitionand is not amortized.It is tested for impairmentat least once per year, and more oftenwhere there is objectiveevidenceof impairment.The impairment test consists of comparing the carrying amount of the CGU or group of CGUs including goodwill with its recoverableamount. A controlledentity’s negativegoodwill is immediatelyrecognized in incomeunder “Changein value of goodwill”. Goodwillrelatedto an associateor joint-ventureis includedin the book value of “Investmentsin associates” under assets if it is positive; however, it cannot subsequently be amortized. It is tested for impairment,at least once per year (see Note 2.2.2.) . If it is negative, it is immediately recognized in income under “Sharein incomeof associates”. Specific case of business combinations carried out under joint control Combinationsbetween entities or operationsunder joint control are understoodto be combinations in whichseveraloperationsare combined and all interested parties (entities or operations) are ultimatelycontrolledby the same party or parties for a relatively long period before and after the combination.Such combinations do not fall within the scope of IFRS 3R.

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Natixis Registration Document 2017