CFM INDOSUEZ Wealth Management - 2020 Annual Report

48 CONSOLIDATED FINANCIAL STATEMENTS 48 Consolidated income statement 50 Net income and gains and losses recognised directly in equity 51 Balance sheet assets 52 Balance sheet liabilities 53 Statement of changes in equity 54 Cash flow statement 56 NOTES TO THE FINANCIAL STATEMENTS 58 Note 1: Principles and methods applicable to the Group, judgement 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) 74 1.4 Scope of consolidation 75 Note 2: Main organisational changes and significant events of the period 75 Note 3: financial management, risk exposure and hedging policy 75 3.1 Credit risk 75 3.2 Market risk 98 3.3 Liquidity and funding risk 103 3.4 Cash flow and fair value hedges on interest rates and foreign exchange positions 105 3.5 Operational risk 112 3.6 Capital management and regulatory ratios 112 Note 4: Notes to the net income statement and gains and losses recognised directly in equity 113 4.1 Interest income and expenses 113 4.2 Fee and commission income and expenses 113 4.3 Net gains or losses on financial instruments at fair value through profit or loss 114 4.4 Net gains or losses on financial instruments at fair value through other comprehensive income 115 4.5 Net income and expenses from other activities 115 4.6 Operating expenses 115 4.7 Depreciation, amortisation and impairment of property, plant and equipment and intangible assets 116 4.8 Cost of risk 116 4.9 Net gains or losses on other assets 116 4.10 Income tax 117 4.11 Change in gains and losses recognised directly in equity 117 CON SOL I DAT ED F I NANC I AL S TAT EMENT S AT 3 1 DECEMBE R 2 0 2 0