Classification criteria

Due to banks, due to customers and outstanding securities cover the various forms of interbank funding, funding with customers, and savings and deposits effected through outstanding bonds, net of any buybacks.

In addition, payables entered by the lessee in finance lease transactions are also included.

Recognition criteria

Due to banks, due to customers and outstanding securities are initially recognised at their fair value, which corresponds to the received payment, net of transaction costs directly attributable to the financial liability.

Measurement criteria

After initial recognition at fair value, these instruments are later measured at amortised cost, using the effective interest method.

Composite debt instruments, connected to share instruments, foreign currency, and credit instruments or indexes are all considered structured instruments. The embedded derivative is separate from the host contract and represents a derivative in itself where the separation criteria are met. The embedded derivative is entered at its fair value and is later measured. Any fair value changes are entered in the income statement.

The value corresponding to the difference between the total collected amount and the fair value of the embedded derivative is attributed to the host contract and later the amortised cost is measured.

Instruments convertible into newly issued treasury shares are considered as structured instruments and entail the recognition, at the date of issue, of a financial liability and a component of equity.

The resulting remaining value, after having subtracted the value separately calculated for a financial liability without conversion clause with the same cash flows from the total value of the financial instrument, is attributed to equity.

The financial liability is recognised net of directly attributable transaction costs and later measured at amortised cost using the effective interest method.

Derecognition criteria

Financial liabilities are derecognised when they expire or are settled. The difference between the carrying amount and the acquisition cost is entered in the income statement.

Such derecognition also applies to buybacks of treasury securities even though such securities are destined for future sale. Profit and loss from such operations are posted to the income statement where the buyback price is superior or inferior to the carrying amount.

Subsequent sales of treasury bonds on the market are considered as issue of a new debt.