2012 Registration document and annual financial report - BNP Paribas

4CONSOLIDATEDFINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2012Notes to the financial statements41.f.2Lessee accountingLeases contracted by the Group as lessee are categorised as either financeleases or operating leases.Finance leasesA finance lease is treated as an acquisition of an asset by the lessee,financed by a loan. The leased asset is recognised in the balance sheetof the lessee at the lower of its fair value or the present value of theminimum lease payments calculated at the interest rate implicit in thelease. A matching liability, equal to the fair value of the leased asset orthe present value of the minimum lease payments, is also recognised inthe balance sheet of the lessee. The asset is depreciated using the samemethod as that applied to owned assets, after deducting the residualvalue from the amount initially recognised, over the useful life of theasset. The lease obligation is accounted for at amortised cost.Operating leasesThe asset is not recognised in the balance sheet of the lessee. Leasepayments made under operating leases are taken to the profit and lossaccount of the lessee on a straight-line basis over the lease term.1.g NON-CURRENT ASSETS HELD FOR SALEAND DISCONTINUED OPERATIONSWhere the Group decides to sell non-current assets and it is highlyprobable that the sale will occur within 12 months, these assets areshown separately in the balance sheet, on the line “Non-current assetsheld for sale”. Any liabilities associated with these assets are also shownseparately in the balance sheet, on the line “Liabilities associated withnon-current assets held for sale”.Once classified in this category, non-current assets and groups of assetsand liabilities are measured at the lower of carrying amount or fair valueless costs to sell.Such assets are no longer depreciated. If an asset or group of assets andliabilities becomes impaired, an impairment loss is recognised in theprofit and loss account. Impairment losses may be reversed.Where a group of assets and liabilities held for sale represents acash generating unit, it is categorised as a “discontinued operation”.Discontinued operations include operations that are held for sale,operations that have been shut down, and subsidiaries acquiredexclusively with a view to resell.All gains and losses related to discontinued operations are shownseparately in the profit and loss account, on the line “Post-tax gain/losson discontinued operations and assets held for sale”. This line includesthe post-tax profits or losses of discontinued operations, the post-tax gainor loss arising from remeasurement at fair value less costs to sell, andthe post-tax gain or loss on disposal of the operation.1.h EMPLOYEE BENEFITSEmployee benefits are classified in one of four categories:■ short-term benefits, such as salary, annual leave, incentive plans,profit-sharing and additional payments;■ long-term benefits, including compensated absences, long-serviceawards, and other types of cash-based deferred compensation;■ termination benefits;■ post-employment benefits, including top-up banking industry pensionsand retirement bonuses in France and pension plans in other countries,some of which are operated through pension funds.Short-term benefitsThe Group recognises an expense when it has used services rendered byemployees in exchange for employee benefits.Long-term benefitsThese are benefits, other than post-employment benefits and terminationbenefits, which are not settled fully within 12 months after the employeesrender the related service. This relates, in particular, to compensationdeferred for more than 12 months and not linked to the BNP Paribasshare price, which is accrued in the financial statements for the periodin which it is earned.The actuarial techniques used are similar to those used for definedbenefitpost-employment benefits, except that actuarial gains and lossesare recognised immediately as is the effect of any plan amendments.Termination benefitsTermination benefits are employee benefits payable as a result of adecision by the Group to terminate a contract of employment before thelegal retirement age or a decision by an employee to accept voluntaryredundancy in exchange for these benefits. Termination benefits due morethan 12 months after the balance sheet date are discounted.Post-employment benefitsIn accordance with IFRS, The BNP Paribas Group draws a distinctionbetween defined-contribution plans and defined-benefit plans.Defined-contribution plans do not give rise to an obligation for theGroup and do not require a provision. The amount of the employer’scontributions payable during the period is recognised as an expense.Only defined-benefit schemes give rise to an obligation for the Group.This obligation must be measured and recognised as a liability by meansof a provision.The classification of plans into these two categories is based on theeconomic substance of the plan, which is reviewed to determine whetherthe Group has a legal or constructive obligation to pay the agreed benefitsto employees.1222012 Registration document and annual financial report - BNP PARIBAS