ourexpertise - Crédit Agricole CIB

32010 MANAGEMENT REPORT CRÉDIT AGRICOLE CIB GROUPBUSINESS REVIEW AND FINANCIALINFORMATION• PRESENTATION OF THE CRÉDIT AGRICOLE CIBGROUP’S FINANCIAL STATEMENTSChanges to accounting principlesand policiesPursuant to EC regulation 1606/2002, the annual consolidatedfi nancial statements were prepared in accordance with IAS/IFRSstandards and IFRIC interpretations as adopted by the EuropeanUnion (the « carve-out« version) and uses certain dispensations ofIAS 39 as regards macro-hedge accounting.The standards and interpretations are identical to those usedand described in the Group fi nancial statements at 31 December2009, except for the change in option for the recognition ofactuarial gains and losses on the post-employment-benefi ts ofthe defi ned-benefi t plans. According to IAS 19, actuarial gainsand losses on defi ned-benefi t plans can be recognised:• Either in profi t and loss in their entirety;• Or in profi t and loss for a portion determined according to the« corridor« approach;• Or in other comprehensive income (shareholders’ equity) in theirentirety.Until 31 December 2009, all the actuarial gains and losses wereaccounted for by Crédit Agricole CIB in the profi t and loss of theperiod.To provide information more comparable with the principles appliedby the other companies, Crédit Agricole CIB has decidedto record the actuarial gains and losses in « unrealized gains andlosses recorded directly in shareholders’ equity«. This approach isapplied permanently and homogeneously to all the pension plansas of 1 January 2010.This change in accounting option is in accordance with the accountingstandard IAS 8, with a retrospective application.These standards and interpretations have been supplemented bythe provisions of those IFRS as endorsed by the European Unionat 31 December 2010 and that must be applied in 2010 for thefi rst time.The application of these new provisions did not produce any materialimpact over the accounting period, except for the revisionsof standards IAS 27 and IFRS 3.The prospective application of revised IAS 27 and IFRS 3 to acquisitionseffective as of 1 January 2010 has resulted in a changeof accounting method for the Group. The main issues are:• the initial recognition of non-controlling interests• the acquisition-related costs• certain transactions must be recognised separately from thebusiness combination• the methods of recognising a business combination achieved instages or partial disposals resulting in loss of control• the allocation of price adjustment clauses, when they are fi nancialinstruments, in accordance with the provisions of IAS 39.During the year 2010, Crédit Agricole CIB did not carry out anysignifi cant transactions that are liable to be concerned by thischange of accounting method.Changes in the scope ofconsolidationChanges in the scope of consolidation during the year are describedbelow:• Entries in 2010The following new created companies were added to the scopeof consolidation:• Crédit Agricole CIB Services Private Ltd,• Cheuvreux/CLSA Global Portfolio Trading Pte Ltd.• Disposals in 2010The following company, whose business activities were no longermaterial, is deconsolidated:• Chauray Contrôle SAS.The following companies are removed out of the scope of consolidationbecause they were liquidated in the fourth quarter of 2010:• Calyon Bank Polska SA,• EDELAAR EESV.The following three companies merged and are removed out ofthe scope of consolidation:• CAAM Distribution AV,• CAAM Espana Holding,• Doumer Philemon SAS.Crédit Agricole CIB Saudi Fransi Limited which is held for sale isdeconsolidated at 31 December 2010.Finally, because the Caisse Régionale du Crédit Agricole deFranche Comté acquired shares of Crédit Agricole FinancementSuisse, our voting interest declined below the consolidation requirementsto be accounted for under the equity method, thissubsidiary is removed of the scope of consolidation accordingly.78SHELF-REGISTRATION DOCUMENT CRÉDIT AGRICOLE CIB 2010