58 CONSOLIDATED FINANCIAL STATEMENTS 58 Income statement 60 Net income and gains and losses recognised directly in equity 61 Balance sheet assets 62 Balance sheet liabilities 63 Statement of changes in equity 64 Cash flow statement 66 NOTES TO THE FINANCIAL STATEMENTS 68 1 PRINCIPLES AND METHODS APPLICABLE TO THE GROUP, JUDGEMENT AND ESTIMATES USED 68 1.1 Applicable standards and comparability 68 1.2 Accounting principles and policies 70 1.3 Consolidation principles and methods (IFRS 10, IFRS 11 and IAS 28) 85 2 MAIN ORGANISATIONAL CHANGES AND SIGNIFICANT EVENTS OF THE PERIOD 86 3 FINANCIAL MANAGEMENT, RISK EXPOSURE AND HEDGING POLICY 86 3.1 Credit risk 86 3.2 Market risk 108 3.3 Liquidity and funding risk 113 3.4 Cash flow and fair value hedges on interest rates and foreign exchange positions 115 3.5 Operational risk 122 3.6 Capital management and regulatory ratios 122 4 NOTES ON NET INCOME AND GAINS AND LOSSES RECOGNISED DIRECTLY IN EQUITY 123 4.1 Interest income and expenses 123 4.2 Fee and commission income and expenses 123 4.3 Net gains or losses on financial instruments at fair value through profit or loss 124 4.4 Net gains or losses on financial instruments at fair value through equity 125 4.5 Net gains or losses resulting from the derecognition of financial assets at amortised cost 125 4.6 Net gains or losses on reclassification of financial assets to fair value through profit or loss [if applicable] 125 4.7 Net income (expenses) from other activities 125 4.8 Operating expenses 125 4.9 Depreciation, amortisation and impairment of property, plant and equipment and intangible assets 126 4.8 Cost of risk 126 4.9 Net gains or losses on other assets 127 4.10 Taxes 127 4.11 Change in gains and losses recognised directly in equity 128 CONSOLIDATED FINANCIAL STATEMENTS at 31 December 2021
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