Subordinated notes
The Group issued subordinated notes in several tranches.
These instruments have no maturity and the coupon’s settlement could be deferred at the option of the issuer. They are booked in equity.
As equity instruments are recognized at historical value, the tranche denominated in foreign currency is never re-measured. Where appropriate, a translation adjustment impact will be booked in equity at the exercise date of any purchase option.
The holders’ payment is directly booked in equity at the date of the decision to pay the coupons.
The tax effect relating to the payment is accounted for as net income and the one relating to the remeasurement of the foreign exchange portion is accounted for as equity.