2019 Universal registration document and annual financial report - BNP PARIBAS 149

4 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 4.1 Profit and loss account for the year ended 31 December 2019 152

4.2 Statement of net income and changes in assets and liabilities recognised directly in equity 153

4.3 Balance sheet at 31 December 2019 154

4.4 Cash flow statement for the year ended 31 December 2019 155

4.5 Statement of changes in shareholders equity between 1 January 2018 and 31 December 2019 156

4.6 Notes to the financial statements prepared in accordance with IFRS as adopted by the European Union 158 Note 1 Summary of significant accounting policies applied by the Group 158

1.a Accounting standards 158

1.a.1 Applicable accounting standards 158

1.a.2 New major accounting standards, published but not yet applicable 159

1.b Consolidation 159

1.b.1 Scope of consolidation 159

1.b.2 Consolidation methods 159

1.b.3 Consolidation rules 160

1.b.4 Business combination and measurement of goodwill 161

1.c Translation of foreign currency transactions 162

1.d Net interest income, commissions and income from other activities 162

1.d.1 Net interest income 162

1.d.2 Commissions and income from other activities 162

1.e Financial assets and liabilities 163

1.e.1 Financial assets at amortised cost 163

1.e.2 Financial assets at fair value through shareholders equity 164

1.e.3 Financing and guarantee commitments 164

1.e.4 Regulated savings and loan contracts 164

1.e.5 Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders equity 165

1.e.6 Cost of risk 167

1.e.7 Financial instruments at fair value through profit or loss 167