La banque d'un monde qui change 2004 - BNP Paribas

• BNP Paribas records provisions to cover the creditrisks inherent to its business (notes 1, 4, 8 and 19 to theconsolidated financial statements). As part of our assessment ofthese estimates, we examined the control procedures applicablefor monitoring credit risks, assessing irrecoverability risks anddetermining the related specific and general provisions;• BNP Paribas uses internal models to value its positionson financial instruments which are not listed on organisedexchanges (note 1 to the consolidated financial statements).As part of our assessment of these estimates, we examinedthe control procedures applicable to the verification of thesemodels and the determination of the parameters used;• investments in non-consolidated undertakings, otherparticipating interests and equity securities held for long-terminvestment are recorded at the lower of cost and fair value.Fair value is determined based on available information using amulti-criteria approach (note 1 to the consolidated financialstatements). As part of our assessment of these estimates,we examined the data used to determine fair value for themain items within these portfolios.We assessed whether these estimates were reasonable.Our assessments on these matters were made in the contextof the performance of our audit of the consolidated financialstatements taken as a whole and therefore contributed toexpressing our opinion set out in the first part of this report.Specific verificationIn accordance with professional standards applicable in France,we have also verified the information given in the Groupmanagement report. We have no matters to report with regardto its fair presentation and conformity with the consolidatedfinancial statements.Neuilly-sur-Seine, Paris and La Défense, 25 February 2005The Statutory AuditorsBarbier Frinault & Autres PricewaterhouseCoopers Audit Mazars & GuérardMazarsRadwan Hoteit Étienne Boris Hervé Hélias268BNP PARIBAS - ANNUAL REPORT 2004