LISI FINANCIALREPORT2013 I
73
COMPANYFINANCIALSTATEMENTS
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The impact of the expense relating to the awards of free performance
shares is included inthepayrollexpenses. foremployeesofLISIS.A.only.
f)Loansandreceivables
Receivables are valued at their face value. A depreciation provision is
recordedwhentherecoverablevalue is lessthanthebookvalue.
g)Provisionsforrisksandcharges
Provisions for risks and charges are recognized in line with the CRC
regulation2000-06on liabilities,datedDecember7,2000.
This regulation stipulates that a liability is recognizedwhena company
has anobligation to a thirdparty and it is probable or certain that this
obligationwillnecessitateanoutflowofresourcestothethirdparty,with
no equivalent or larger payment in return. Theobligationmust exist at
theclosingofaccounts inordertoberecognized.
Provisions are calculated with help from the Group’s lawyers and
consultants,basedoncurrentprotocolandanassessmentof the risksat
thedateofclosingofaccounts.
h)Financialinstruments
Results relating to financial instrumentsused inhedgingoperationsare
calculated and recognized in such away as tobalance the income and
expensesrelatingtothehedgedelements.
i)Taxesonprofits
LISI S.Abenefits from the tax integration regime enactedby the lawof
December31,1987.Thisregimeallowsthetaxableresultsofprofit-making
companies tobeoffsetby thedeficitsofother companies,under certain
conditions.
Each company covered by the tax integration regime calculates and
recognizes itstaxpayableas if itweretaxed individually.
LISI S.A. recognizes the savings or additional taxburden resulting from
thedifferencebetween the taxowedby the subsidiaries coveredby the
regime,andthetaxresulting fromthecalculationofthe jointresult.
The tax integration agreement stipulates that tax gains generated by
loss-makingsubsidiariesshouldberetainedattheparentcompany level.
