PSA_GROUP_REGISTRATION_DOCUMENT_2017

CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2017 Notes to the consolidated financial Statements at December 2017

Effect of financial instruments on profit or loss D.

2017

Analysis by class of instrument

Instruments at fair value through profit or loss

Loans, receivables and other liabilities

Income Statement Impact

Available-for sale financial assets

Borrowings at amortised cost

Derivative instruments

(in million euros)

Finance companies Total interest income Total interest expense

72

- -

- - - - -

72

-

- -

(47)

-

(47)

Remeasurement (1) Net impairment

3

9

6

- -

(12)

(5) 23

-

(5) 73

-

TOTAL - FINANCE COMPANIES

9

(47)

(12)

For instruments classified as “at fair value through profit or loss”, remeasurement includes interest and dividends received. (1)

Concerning the Finance companies, the impact on the income statement of assets and liabilities pursuant to IAS 39 is recognised in “recurring operating income”.

OFF-BALANCE SHEET COMMITMENTS AND CONTINGENT LIABILITIES 13.6.

31 December 2017

31 December 2016

(in million euros)

Financing commitments to customers

12

10

INCOME TAXES NOTE 14

In accordance with IAS 12 “Income Taxes” , deferred taxes are calculated for all temporary differences between the tax base of assets and liabilities and their carrying amount. Deferred tax liabilities are systematically recognised, while deferred tax assets are recognised only when there is a reasonable expectation that they will be recovered. A deferred tax liability is recognised for all taxable temporary differences associated with investments in subsidiaries and equity-accounted companies, except to the extent that both of andthe following conditions are satisfied: the Group is able to control the timing of the reversal of the „ temporary difference; and it is probable that the temporary difference will not reverse in „ the foreseeable future.

In practice: for subsidiaries fully consolidated, a deferred tax liability is „ recognised only in respect of distribution taxes on dividends that will be paid by the subsidiary in the following year by decision of the Group; for equity-accounted companies, a deferred tax liability on „ dividend distributions is recognised for all differences between the tax base of the shares and their carrying amount; current tax benefits generated by intragroup provisions and „ sales are not cancelled by recognising deferred tax liabilities, except when the difference is considered to be temporary, for example, when the Group plans to divest the subsidiary.

INCOME TAXES OF FULLY-CONSOLIDATED COMPANIES 14.1.

2017

2016

(in million euros)

Current taxes Corporate income taxes

(565)

(596)

Deferred taxes Deferred taxes arising in the year

(136) (701)

79

TOTAL

(517)

223

GROUPE PSA - 2017 REGISTRATION DOCUMENT