2019 Universal registration document and annual financial report - BNP PARIBAS 179

4Consolidated finanCial statements for the year ended 31 deCemBer 2019

4

Notes to the financial statements

The following table presents the balance-sheet accounts impacted by the first application of IFRS 16.

In millions of euros 31 December 2018 Effect of the

IFRS 16 adoption 1st January 2019

ASSETS

Current and deferred tax assets 7,220 45 7,265

Accrued income and other assets 103,346 7 103,353

Property, plant and equipment and investment property 26,652 3,357 30,009

Of which gross value 42,006 6,639 48,645

Of which accumulated depreciation, amortisation and impairment (15,354) (3,282) (18,636)

TOTAL EFFECT ON ASSETS 3,409

LIABILITIES

Deposits from credit institutions 78,915 (11) 78,904

Current and deferred tax liabilities 2,255 (2) 2,253

Accrued expenses and other liabilities 89,562 3,568 93,130

TOTAL EFFECT ON LIABILITIES 3,555

EQUITY

Shareholders equity 101,467 (141) 101,326

Minority interests 4,259 (5) 4,254

TOTAL EFFECT ON EQUITY (146)

TOTAL EFFECT ON LIABILITIES 3,409

Note 3 NOTES TO THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2019

3.a NET INTEREST INCOME The BNP Paribas Group includes in Interest income and Interest expense all income and expense calculated using the effective interest method (interest, fees and transaction costs) from financial instruments measured at amortised cost and financial instruments measured at fair value through equity.

These items also include the interest income and expense of non- trading financial instruments the characteristics of which do not allow for recognition at amortised cost or at fair value through equity, as well as of financial instruments that the Group has designated as at fair value

through profit or loss. The change in fair value on financial instruments at fair value through profit or loss (excluding accrued interest) is recognised under Net gain on financial instruments at fair value through profit or loss .

Interest income and expense on derivatives accounted for as fair value hedges are included with the revenues generated by the hedged item. Similarly, interest income and expense arising from derivatives used to hedge transactions designated as at fair value through profit or loss is allocated to the same accounts as the interest income and expense relating to the underlying transactions.