2018 Registration document and annual fi nancial report - BNP PARIBAS150

4 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

4

1.e.8 Financial liabilities and equity instruments 168

1.e.9 Hedge accounting 169

1.e.10 Determination of fair value 170

1.e.11 Derecognition of financial assets and financial liabilities 170

1.e.12 Offsetting financial assets and financial liabilities 171

1.f Accounting standards specific to insurance activities 171

1.f.1 Profit and loss account 171

1.f.2 Financial investments of insurance activities 171

1.f.3 Technical reserves and other insurance liabilities 172

1.g Property, plant, equipment, and intangible assets 173

1.h Leases 174

1.h.1 Group company as lessor 174

1.h.2 Group company as lessee 174

1.i Non-current assets held for sale and discontinued operations 174

1.j Employee benefits 175

1.k Share-based payments 175

1.l Provisions recorded under liabilities 176

1.m Current and deferred tax 176

1.n Cash flow statement 176

1.o Use of estimates in the preparation of the financial statements 177

Note 2 Impacts of presentation changes and of the fi rst time adoption of IFRS 9 and IFRS 15 177

2.a Impacts of presentation changes and of the securities accounting at settlement date 178

2.b Impacts of the adoption of IFRS 9 and IFRS 15 182

Note 3 Notes to the profi t and loss account for the year ended 31 December 2018 188

3.a Net interest income 188

3.b Commission income and expense 189

3.c Net gain on financial instruments at fair value through profit or loss 189

3.d Net gain on financial instruments at fair value through equity and on financial assets at amortised cost 190

3.e Net income from insurance activities 191

3.f Net income from other activities 191

3.g Other operating expenses 191

3.h Cost of risk 192

3.i Corporate income tax 195

Note 4 Segment information 196

Note 5 Notes to the balance sheet at 31 December 2018 200

5.a Financial instruments at fair value through profit or loss 200

5.b Derivatives used for hedging purposes 201

5.c Financial assets at fair value through equity 204

5.d Measurement of the fair value of financial instruments 205

5.e Financial assets at amortised cost 214

5.f Impaired financial assets (stage 3) 216

5.g Financial liabilities at amortised cost due to credit institutions and customers 216

5.h Debt securities and subordinated debt 217

5.i Financial investments of insurance activities 219

5.j Technical reserves and other insurance liabilities 221

5.k Current and deferred taxes 222