75 - Capital gains and losses realised on financial assets at fair value through profit or loss; - Changes in fair value and income from the sale or termination of derivative instruments that are not subject to a fair value hedging or cash flow hedging relationship. This item also includes the ineffective portion of hedging transactions. Net gains (losses) on financial instruments at fair value through other comprehensive income For financial assets recognised at fair value through other comprehensive income, this item includes the following items of income: - Dividends from equity instruments classified as financial assets at fair value through other comprehensive income not recyclable to income: - Capital gains and losses and income related to the termination of the hedging relationship on debt instruments classified as financial assets at fair value through recyclable equity; - Income from the sale or termination of fair value hedges of financial assets at fair value through other comprehensive income when the hedged item is sold. FINANCING AND FINANCIAL GUARANTEE COMMITMENTS GIVEN Financing commitments that are not classified as assets measured at fair value through profit or loss or that are not considered to be derivative instruments within the meaning of IFRS 9 are not included in the balance sheet. However, they are subject to provisions for credit risk in accordance with IFRS 9. A financial guarantee contract is a contract requiring the issuer to make specific payments to reimburse the holder for a loss incurred due to a specific debtor's failure to make a payment when due, in accordance with the initial or modified terms and conditions of a debt instrument. Financial guarantee contracts are initially measured at fair value and subsequently at the one of the following, whichever is greater: - the value adjustment amount for losses determined in accordance with the provisions of the “Impairment” section of IFRS 9; or - the amount initially recognised less, if any, accumulated income recognised in accordance with the principles of IFRS 15 Revenue from Contracts with Customers. PROVISIONS (IAS 37) CFM Indosuez Wealth identifies legal or implicit obligations resulting from a past event, in cases in which it is likely that an outflow of resources will be required to settle them, where the timing or amount are uncertain but of which a reliable estimate can be made. These estimates are discounted, where applicable, whenever there is a material impact. In respect of non-credit risk obligations, CFM Indosuez Wealth has set up provisions that cover: - operational risks; - employee benefits; - performance risk on off-balance sheet commitments; - litigation and liability guarantees. - tax risks (excluding income tax); Commitments are established taking into account, in particular: - the modelled behaviour of the subscribers, using assumptions of changes in these behaviours, based on historical observations and which may not reflect actual future changes; - an estimate of the amount and duration of future borrowings based on historical long-term observations; - the curve of observable rates on the market and reasonably anticipated changes in such rates. The amount of the following provisions may also be estimated: - the provision for operating risks, for which an inventory of proven risks and an assessment by Management of the frequency of the incident and the amount of the potential financial impact are taken into account. - provisions for legal risks resulting from Management’s best assessment, taking into account the information in its possession at the end of the financial year. Detailed information is provided in Note 6.17 “Provisions”. EMPLOYEE BENEFITS (IAS 19) Employee benefits, in accordance with IAS 19, fall into four categories: - short-term benefits, such as wages, social security contributions, holidays, incentive bonuses, profit-sharing, and bonuses, are those expected to be paid within 12 months of the year in which the services were rendered; - retirement benefits, which are themselves classified into the two categories described below: defined benefit plans and defined contribution plans. - other long-term benefits (long-service awards, bonuses and remuneration payable 12 months or more after the end of the financial period); - severance pay. POST-EMPLOYMENT BENEFITS Defined-benefit plans At each closing date, CFM Indosuez Wealth determines its retirement and similar benefits as well as all the employee benefits granted in respect of defined benefit plans.
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