Equity instruments at fair value through other comprehensive income not recyclable to income (irrevocable option) The irrevocable option to recognise equity instruments at fair value through other comprehensive income on items that may not be reclassified is adopted at the transactional level (line by line) and applies from the date of initial recognition. These securities are recorded at the trade date. The initial fair value includes transaction costs. During subsequent valuations, changes in fair value are recognised in other comprehensive income on items that may not be reclassified. In the event of disposal, these changes are not reclassified to profit or loss, and the gain or loss on disposal is recognised in other comprehensive income. Only dividends are recognised in income if: - the entity's right to collect payment is established; - it is likely that the economic benefits associated with the dividends will flow to the entity; - the amount of dividends can be reliably measured. This category of financial assets is not impaired. Derecognition of financial assets A financial asset (or group of financial assets) is derecognised in whole or in part: - when the contractual rights to the cash flows related to the asset expire; - or when they are transferred or considered as such because they have one or more beneficial owners and when substantially all the risks and benefits of the financial asset are transferred. In this case, any rights or obligations created or retained at the time of transfer are recognised separately as assets and liabilities. If the contractual rights to the cash flows are transferred but only some of the risks and rewards as well as control are retained, CFM Indosuez Wealth continues to recognise the financial asset to the extent of the entity’s continued involvement in this asset. The continuing involvement represents the portion of the asset that remains exposed to changes in the value of the transferred asset. Financial assets renegotiated for commercial reasons without any financial difficulties of the counterpart and with the aim of developing or keeping a commercial relationship are derecognised at the date of the renegotiation. The new loans granted to customers are recorded at their fair value on the date of renegotiation. Subsequent accounting treatment will depend on the business model and the SPPI test. Financial liabilities Classification and valuation of financial liabilities On the balance sheet, financial liabilities are classified into two accounting categories: - financial liabilities at fair value through profit or loss, either by default or as an option - financial liabilities at depreciated cost. Financial liabilities at fair value through profit or loss, by default Financial instruments issued primarily with a view to being bought back in the short term, instruments forming part of an identified portfolio of financial instruments that are managed together and which show indications of a recent short-term profit-taking profile, and derivatives (with the exception of certain hedging derivatives) are measured at fair value by nature. Changes in the fair value of this portfolio are booked to the Income Statement. Financial liabilities designated at fair value through profit or loss Financial liabilities meeting one of the following three conditions stipulated by the standard may be designated for measurement at fair value through profit or loss: hybrid issues comprising one or more separable embedded derivatives; reduction or elimination of the distortion of accounting treatment; or groups of managed financial liabilities whose performance is measured at fair value. This option is irrevocable and application is mandatory at the date of initial recognition of the instrument. In subsequent measurements, these financial liabilities are measured at fair value, with changes in fair value not related to credit risk recognised in profit or loss, and changes in fair value related to credit risk recognised in non-recurring equity, unless this exacerbates the accounting mismatch (in which case changes in fair value related to credit risk are recognised in profit or loss, as required by the standard). Financial liabilities measured at amortised cost All other liabilities matching the definition of a financial liability (excluding derivatives) are valued at amortised cost. These liabilities are initially measured at fair value (including transaction income and costs) and subsequently recognised at amortised cost using the effective interest rate method. Deposits Deposits are classified under the category ‘Financial liabilities at amortised cost – Amounts due to customers’, despite the nature of the deposit collection process within the Crédit Agricole Group, whereby deposits from the regional banks are centralised at Crédit Agricole S.A. The final counterpart of these deposits for the Group remains the customers. They are initially measured at fair value and subsequently at amortised cost. Regulated savings products are by nature deemed to be at market rates. Where applicable, home savings schemes and home savings accounts give rise to a provision as detailed in Note 6.15, Provisions. Annual Report 2025 83
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