BPCE - 2018 Registration document
FINANCIAL REPORT IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2018
recorded in the income statement if the Group determines that the value of the asset will not be recovered in its entirety. For unlisted equity instruments, a qualitative analysis of their situation is carried out. Impairment losses recognized on equity instruments may not be reversed and nor may they be written back to income. Losses are recorded under “Net income from insurance businesses”. A subsequent increase in value is taken to “Gains and losses recognized directly in equity” until disposal of the securities. Impairment losses are recognized on debt instruments such as bonds or securitized transactions (ABS, CMBS, RMBS, cash CDOs) when there is a known counterparty risk. The Group uses the same impairment indicators for debt securities as those used for individually assessing the impairment risk on loans and receivables, irrespective of the portfolio to which the debt securities are ultimately designated. For perpetual deeply subordinated notes, particular attention is also paid if, under certain conditions, the issuer may be unable to pay the coupon or extend the issue beyond the scheduled redemption date.
In the event of an improvement in the issuer’s financial position, impairment losses taken on debt instruments must be written back to the income statement. Impairment losses and write-backs are recorded in “Cost of credit risk” (for the insurer’s net share). Impairment of loans and receivables IAS 39 defines the methods for calculating and recognizing the impairment of loans. A loan or receivable is deemed to be impaired if the following two conditions are met: there is objective evidence of impairment on an individual or ● portfolio basis in the form of triggering events or loss events identifying counterparty risk occurring after the initial recognition of the loans in question. On an individual level, the criteria for deciding whether or not a credit risk has been incurred include the existence of past due payments; these events are liable to lead to the recognition of incurred ● losses. Impairment is determined as the difference between the amortized cost and the recoverable amount of the receivable, i.e. the present value of estimated recoverable future cash flows taking into account the impact of any collateral.
12/31/2018
01/01/2018
in millions of euros
5
Investment property
1,664
1,567
Financial assets at fair value through profit or loss
23,598 54,126
23,591 51,271
Available-for-sale financial assets
Loans and receivables due from credit institutions Loans and receivables due from customers
383
518
12,735
10,268
Held-to-maturity financial assets
2,060
2,655
Share held by cedents and retrocessionaires in liabilities relating to insurance policies and financial contracts
13,063
11,407
Receivables arising from insurance and assumed reinsurance activities
2,139
1,433
Receivables arising from ceded reinsurance activities
96
34
Deferred acquisition costs
431
438
TOTAL INSURANCE BUSINESS INVESTMENTS
110,295
103,182
9.1.1.1 Investment property
12/31/2018
01/01/2018
Accumulated depreciation and impairment
Accumulated depreciation and impairment
Gross amount
Net amount
Gross amount
Net amount
in millions of euros
Investment property – At historical cost Investment property – At fair value Investment property – UL policies
44
(14)
30
44
(13)
31
1,259
1,259
1,173
1,173
374
374
363
363
TOTAL
1,678
(14)
1,664
1,580
(13)
1,567
The fair value of investment property is classified in Level 3 of the fair value hierarchy in accordance with IFRS 13.
335
Registration document 2018
Made with FlippingBook flipbook maker