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COMPANY FINANCIAL STATEMENTS
82
LISI 2015 FINANCIAL REPORT
3
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
Economic
depreciation
Fiscal depreciation
Software programs 3 years straight line
1 year straight line
Buildings
33.33 years
straight line
20 years
straight line
Transport
equipment
5 years
straight line
3 years
diminishing balance
Office equipment
3-5 years
straight line
3-5 years
diminishing balance
Office furniture
5-10 years
straight line
5-10 years
straight line
LISI S.A. does not calculate depreciation of individual elements:
fixed assets that would require such restatement are not of a
significant nature.
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. They may be
depreciated in line with 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
stockmarket price for December) for treasury stocks purchased
under 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
LISI S.A. is a public limited company (société anonyme) with
a Board of Directors, with capital of €21,609,550 representing
54,023,875 shares with €0.40 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-
France.
The final annual balance at December 31, 2015 was €692,928,363.
The annual income statement showed a profit of €30,037,487.
The financial year runs over twelve (12) months, from January 1,
2015 to December 31, 2015.
The notes and tables below form an integral part of the
Company financial statements.
3.1
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ACCOUNTING RULES AND METHODS
The financial statements for 2015 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 financial
statements for 2015 were drawn up are identical to those for
2014.
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 line or diminishing balance method, in
accordance with their expected useful life: