BIC_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Consolidated financial statements

Estimated fair value of shares granted and impact on the income statement

Plans’ unit fair value – binomial model (in euros)

Expense/(income) booked in income statement (in thousand euros)

Free share plan date

Dec. 31, 2016

Dec. 31, 2017

Feb. 14, 2012 Feb. 12, 2013 Feb. 11, 2014 Feb. 10, 2015 May 18, 2016 Feb. 10, 2017

62.90 85.39 75.70

25

-

382 301 551 295

(63) 301 438 453 467

111.49 109.85 109.05

 -

TOTAL

1,554

1,596

As of December 31, 2017, the total fair value of options and shares granted amounted to 7,851 thousand euros.

FINANCIAL INSTRUMENTS NOTE 24

Accounting policies Financial assets and financial liabilities are recognized on the Group’s balance sheet when the Group becomes a party to the contractual provisions of the instrument. a) Trade receivables See Note 14. b) Investments Investments are recognized and derecognized on a transaction date basis where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by regulations or the market concerned, and are initially measured at fair value, plus directly attributable costs. After initial recognition, investments for which the Group has the positive intention and ability to hold to maturity (Held-to-maturity investments) are measured at amortized cost using the effective interest method, less any impairment loss booked to reflect unrecoverable amounts. An impairment loss is recognized in the income statement when there is objective evidence that the asset is impaired and the amount of the loss is measured at the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The impairment loss is reversed in a subsequent period if there is objective evidence that the amount of the impairment loss has decreased and the reversal will not result in a carrying amount of the financial asset that exceeds the amortized cost that would have been obtained on the date of reversal if the impairment had not been recognized. The amount of the reversal is recognized in profit or loss for the period. Investments other than those held to maturity are classified as either investments held for trading (marketable securities) or as available-for-sale assets (equity investments), and are measured at fair value. Where securities are held for trading purposes, gains and losses arising from changes in fair value are included in profit or loss for the period. For available-for-sale securities, gains and losses arising from changes in fair value are recognized directly in equity, until the security is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognized in equity is transferred to profit or loss for the period. Impairment losses recognized in profit or loss for equity investments (shares) classified as available-for-sale are not subsequently reversed through profit or loss. Impairment losses recognized in profit or loss for debt instruments (bonds), are subsequently reversed if an increase in the fair value of the instrument can be objectively observed.

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BIC GROUP - 2017 REGISTRATION DOCUMENT