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LISI 2011 —
75
— financial report
Company financial statements
rights acquired since the allocation date. Where relevant, provisions
thus provided for take into account whether or not treasury shares are
allocated to share options or relevant free allocations.
The impact of the expense relating to the awards of free shares on the
basis of performance is included in the payroll expenses.
f) Loans and receivables
Receivables are valued at their face value. A depreciation provision is
recorded when the recoverable value is less than the book value.
g) Provisions for risks and charges
Provisions for risks and charges are recognized in line with the CRC
regulation 2000-06 on liabilities, dated December 7, 2000.
This regulation stipulates that a liability is recognizedwhen a company
has an obligation to a third party and it is probable or certain that this
obligation will necessitate an outflow of resources to the third party,
with no equivalent or larger payment in return. The obligation must
exist at the closing of accounts in order to be recognized.
Provisions are calculated with help from the Group’s lawyers and
consultants, based on current protocol and an assessment of the risks
at the date of closing of accounts.
h) Financial instruments
Results relating to financial instruments used in hedging operations
are calculated and recognized in such a way as to balance the income
and expenses relating to the hedged elements.
i) Taxes on profits
LISI S.A. benefits from the tax consolidation regime enacted by the law
of December 31, 1987. This regime allows the taxable results of profit-
making companies to be offset by the deficits of other companies,
under certain conditions.
Each company covered by the tax consolidation regime calculates and
recognizes its tax payable as if it were taxed individually.
LISI S.A. recognizes the savings or additional tax burden resulting from
the difference between the tax owed by the subsidiaries covered by
the regime, and the tax resulting from the calculation of the joint
result.
The tax consolidation agreement stipulates that tax gains generated
by loss-making subsidiaries should be retained at the parent company
level.
3.2
Detail of balance sheet items
3.2.1 Gross fixed assets
(In €’000)
Gross value
at year start
for the period
Acquisitions
Disposals /
Deconsolidations
Gross value
at year end
for the period
Intangible fixed assets
Concessions, patents, licenses, etc.
198
36
(2)
232
Total
198
36
(2)
232
Tangible fixed assets
Land
216
(60)
156
Buildings
392
392
Other tangible assets
701
45
(41)
705
Tangible assets in progress
15
15
Total
1,309
60
(101)
1,268
Financial assets
Equity interests and related receivables
171,218
10
(31,967)
139,261
– Of which LISI AUTOMOTIVE loan
19,250
(4,500)
14,750
– Of which LISI AUTOMOTIVE accrued interest
126
10
(126)
10
Other long-term investments
9
9
Borrowings and other debts
36
1
37
Total
171,263
10
(31,967)
139,306
Grand Total
172,770
107
(32,070)
140,805
The reduction in financial fixed assets for an amount of €-31.9m results from the divestiture of LISI COSMETICS for €27.3m and from repayments
of intra-group loans for €-4.5m.