CFM INDOSUEZ Wealth Management - 2019 annual report

C O N S O L I DAT E D F I N A N C I A L S TAT E M E N T S 4 8 Consolidated income statement 50 Net income and gains and losses recognised directly in other comprehensive income 51 Balance sheet assets 52 Balance sheet liabilities 53 Statement of changes in equity 54 Cash flow statement 56 N OT E S TO T H E F I N A N C I A L S TAT E M E N T S 5 8 Note 1: Principles and methods applicable to the Group, judgements and estimates used 58 1.1 Applicable standards and comparability 58 1.2 Accounting principles and policies 59 1.3 Consolidation principles and methods (IFRS 10, IFRS 11 and IAS 28) 70 1.4 Scope of consolidation 71 Note 2: Main organisational changes and significant events of the period 71 Note 3: Financial management, risk exposure and hedging policy 71 3.1 Credit risk 72 3.2 Market risk 94 3.3 Liquidity and funding risk 99 3.4 Cash flow and fair value hedges on interest rates and foreign exchange positions 101 3.5 Operational risks 108 3.6 Capital management and regulatory ratios 108 Note 4: Notes to the net income statement and gains and losses recognised directly in other comprehensive income 109 4.1 Interest income and expenses 109 4.2 Fee and commission income and expenses 109 4.3 Net gains or losses on financial instruments at fair value through profit or loss 110 4.4 Net gains or losses on financial instruments at fair value through other comprehensive income 111 4.5 Net income and expenses from other activities 111 4.6 Operating expenses 111 4.7 Depreciation, amortisation and impairment of property, plant and equipment and intangible assets 112 4.8 Cost of risk 112 4.9 Net gains or losses on other assets 112 4.10 Taxes 113 4.11 Change in gains and losses recognised directly in other comprehensive income 113 C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S A T 3 1 D E C E M B E R 2 0 1 9 48 CFM Indosuez Wealth Management