LISI 2012 FINANCIAL REPORT
81
4
COMPANY FINANCIAL STATEMENTS
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
performance shares is included in the payroll expenses. for
employees of LISI S.A. only.
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 recognized when 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 integration 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 integration 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 integration agreement stipulates that tax gains
generated by loss-making subsidiaries should be retained at the
parent company level.
