AFD_REGISTRATION_DOCUMENT_2017

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS 6 Notes to the consolidated financial statements

6.2.2 Accounting standards

6.2.1.3 Supervision of AFD Group AFD approval changed on 30bJune 2017. The European Central Bank (ECB) approved a status change from Bank to Financing company. This change affected neither its EPIC (industrial and commercial public undertaking) status under French law, nor its mission, as the objectives remained the same. Because of the approval change, on 30bJune 2017 AFD ceased to be supervised by the ECB and was placed under the supervision of the French Prudential Supervisory Authority (Autorité de contrôle prudentiel et de résolution or ACPR). The ACPR began an audit of AFD and Proparco in Octoberb2017. On 28bSeptember 2017, a meeting of AFD’s Board of Directors approved the disposal of stakes AFD held on its own behalf in SIDR, SIM, SIGUY and Simar. The disposal took effect on 31bDecember 2017band resulted in the exit of Simar (Société immobilière de la Martinique) from the scope of consolidation. Until that point, it had been an equity- accounted company in AFD Group’s consolidated financial statements. 6.2.1.5 Method change for the collective provision allocation The method was fine-tuned to ensure better consideration and harmonisation of changes to the collective provision allocation models in the group’s consolidated financial statements. The adjustment led to a €48.5M reversal of collective provisions. The main aim of this audit is to review credit risk. 6.2.1.4 Disposal of equity stakes in SIDOM

applied to Agence Française debDéveloppement

The financial statements given in this document include the summary financial statements and the notes to the financial statements. They are presented in accordance with French Accounting Standards Authority (ANC) Recommendation 2013- 04 of 7bNovember 2013bconcerning the format of the summary documents of companies subject to banking and finance regulations under international accounting standards. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The IFRSbstandards include the accounting standards issued by the International Accounting Standards Board (IASB) and the interpretations published by the IFRSbInterpretations committee. The accounting standards used in the preparation of AFD’s financial statements at 31bDecember 2017bare described in Noteb3.2. These consolidated financial statements are presented in thousands of euros. The standards and interpretations used in the financial statements as at 31bDecember 2017bwere supplemented by the provisions of IFRSbstandards as adopted by the European Union that must be applied for the first time to this financial year. They relate to:

Date of adoption

Date of application: financial years starting

Standards

Amendments to IASb12 “Recognition of deferred tax assets for unrealised losses”

Novemberb2017 Novemberb2017

1bJanuary 2017 1bJanuary 2017

Amendments to IASb7 Disclosure initiative

These amendments had no impact on AFD’s financial statements at 31bDecember 2017. The most important new standards published but not yet applicable to the 2017bfinancial year are as follows:

Dates of publication by the European Union

Date of application: financial years starting

Standards, amendments or interpretations IFRSb15 Revenue from contracts with customers

Septemberb2016 (EU 2016/1905) Novemberb2016 (EU 2016/2067)

1bJanuary 2018

Replacement of IASb11 Construction Contracts and IASb18 Revenue

IFRSb9 Financial Instruments

1bJanuary 2018

Replacement of IASb39 –bFinancial Instruments: recognition and measurement

Amendments to IFRSb9

The date of adoption by the EU has not yet been fixed

1bJanuary 2019

Prepayment features with negative compensation IFRSb16 Leases

Octoberb2017

1bJanuary 2019

Replacement of IASb17 –bLeases

IFRSb15 Revenue from contracts with customers IFRSb15 Revenue from contracts with customers will apply for annual periods starting 1bJanuary 2018 (in accordance with regulation EU 2016/1905). The “Clarification of IFRSb15”

Unless otherwise stated, when application of the standards and interpretations adopted by the European Union is optional for a period, AFD did not take up the option.

95

REGISTRATION DOCUMENT 2017

www.afd.fr