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LISI 2011 —
74
— financial report
Company financial statements
.3
Notes to the company accounts
line or diminishing balance method, in accordance with their expected
useful life:
Economic
depreciation
Fiscal
depreciation
Buildings
33.33 years straight
line
20 years straight
line
Transport equipment
5 years straight
line
3 years straight
line
Office equipment
5 years straight
line
5 years straight
line
Office furniture
10 years straight
line
10 years straight
line
LISI S.A. does not calculate depreciation of individual elements:
its tangible assets either cannot be broken down into individual
elements, or are not of a type requiring such a calculation.
b) Financial fixed assets
Participating shares and other financial fixed assets are valued at their
purchase price, excluding the costs incurred in their acquisition. If these
values are higher than the value in use, a provision for depreciation is
recorded to account for the discrepancy.
The value in use is calculated from each line of investment, based
on the profitability and performance outlook for the companies
concerned; on developments in the economic sectors in which they
operate; and on their positions within these sectors.
The inventory value has been brought into line with the value in use
calculated for the impairment tests, which did not show any loss in
value.
c) Marketable securities
Marketable securities are valued at their purchase price, excluding the
costs incurred in their acquisition. Theymay be depreciated in linewith
the average price or the year-end price.
d) Treasury stock
Treasury stock is held as marketable securities. These latter are valued
at their lowest acquisition price or market value (average stock market
price for December) for treasury stocks purchasedunder price regulation
or equity not allocated to staff stock option or share allocation plans. For
shares allocated to plans, CNC notice no. 2008-17 applies.
e) Free shares and options
Where an outflow of resources relating to share purchase options
and free share awards on the basis of performance is probable, the
amount of the future expense is provisioned in proportion to the
LISI. S.A. is a public limited company with a Board of Directors,
with capital of €21,572,988 representing 10,786,494 shares with
€2 face value. It is registered at the Belfort trade registry, under no.
536 820 269. Its registered offices are based at Le Millenium, 18 rue
Albert Camus, Belfort.
The final annual balance at December 31, 2011 was €368,049,353. The
annual income statement showed a profit of €19,308,622.
The financial year runs over 12 (twelve) months, from January 1, 2010
to December 31, 2011.
The notes and tables below form an integral part of the company
accounts.
3.1
Accounting rules and methods
The accounts for 2011 are drawn up in line with current French
accounting regulations. The accounting rules and methods have
been applied in line with the prudence principle and with underlying
assumptions which aim to provide an accurate picture of the
company:
– the continuity of operations;
– the comparability of accounting methods;
– the independence of financial years.
Items listed on the balance sheet are, depending on the item, valued at
historic cost, transfer value, or net asset value.
The accounting principles on which the company accounts for 2011
were drawn up are identical to those for 2010.
The preparation of financial statements requires LISI to make
estimates and speculative forecasts which are liable to impact on
both its assets and liabilities as well as those of its subsidiaries and
holdings.
The latter are exposed both to specific, industry-related risks as well as
risks relating to the wider international environment.
In LISI S.A.’s financial statements, the estimates and forecasts involved
in implementing accounting methods particularly affect equity
investments, as valuations (see note b, below) are based on affiliates’
forecast data.
a) Tangible fixed assets
Tangible assets are valued at their historical cost (price of purchase
and related expenses), and depreciation is calculated using the straight