2012 Registration document and annual financial report - BNP Paribas

4CONSOLIDATEDFINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2012Notes to the financial statementsChanges in value taken directly to equity are determined as follows:4In millions of eurosFixed-incomesecuritiesEquities andother variableincomesecurities31 December 2012 31 December 2011TotalFixed-incomesecuritiesEquities andother variableincomesecuritiesChanges in value of non-hedged securitiesrecognised in "available-for-sale financialassets" 6,414 2,868 9,282 (5,120) 1,621 (3,499)Deferred tax linked to these changes in value (2,162) (556) (2,718) 1,959 (228) 1,731Insurance policyholders' surplus reservefrom insurance entities, after deferred tax (3,854) (558) (4,412) (307) (21) (328)Group share of changes in value ofavailable-for-sale securities owned byassociates, after deferred tax and insurancepolicyholders' surplus reserve 504 94 598 58 96 154Unamortised changes in value of availablefor-salesecurities reclassified as loans andreceivables (172) - (172) (395) - (395)Other variations (33) 25 (8) (38) 23 (15)Changes in value of assets taken directl y toequity under the heading "Financial assetsavailable for sale and reclassified loans andreceivables" 697 1,873 2,570 (3,843) 1,491 (2,352)Attributable to equity shareholders 340 1,809 2,149 (3,644) 1,448 (2,196)Attributable to minority interests 357 64 421 (199) 43 (156)Total5.d MEASUREMENT OF THE FAIR VALUE OFFINANCIAL INSTRUMENTSFinancial instruments are classified into three levels in descendingorder of the observability of their value and of the inputs used for theirvaluation:■ Level 1 – Financial instruments with quoted market prices:This level comprises financial instruments with quoted prices in anactive market that can be used directly.It notably includes liquid shares and bonds, short sales of theseinstruments, derivatives traded on organised markets (futures andoptions, etc.), and units in funds with net asset value calculated ona daily basis.■ Level 2 – Financial instruments measured using valuation techniquesbased on observable inputs:This level consists of financial instruments measured by referenceto the price of similar instruments quoted in an active market or toidentical or similar instruments quoted in a non-active market, butfor which transactions are observable or, lastly, instruments measuredusing valuation techniques based on observable inputs.This level notably includes illiquid shares and bonds, short sales ofthese instruments, short-term repurchase agreements not measuredbased on a quoted price directly observed in the market, units in civilproperty companies (SCIs) held in unit-linked policy portfolios, wherethe underlying assets are appraised from time to time using observablemarket data, units in funds for which liquidity is provided on a regularbasis, derivatives traded in OTC markets measured using techniquesbased on observable inputs and structured debt issues measured usingonly observable inputs.■ Level 3 – Financial instruments measured using valuation techniquesbased on non-observable inputs:This level comprises financial instruments measured using valuationtechniques based wholly or partially on non-observable inputs. Anon-observable input is defined as a parameter, the value of which isderived from assumptions or correlations based neither on observabletransaction prices in the identical instrument at the measurement datenor observable market data available at the same date.An instrument is classified in Level 3 if a significant portion of itsvaluation is based on non-observable inputs.This level notably comprises unlisted shares, bonds measured usingvaluation models employing at least one significant non-observableinput or derived from price data in a non-active market (such as CDO,CLO and ABS units), long-term or structured repurchase agreements,units in funds undergoing liquidation or the listing of which has beensuspended, complex derivatives with multiple underlyings (hybridinstruments, synthetic CDOs, etc.) and the structured debt underlyingthese derivatives.1422012 Registration document and annual financial report - BNP PARIBAS