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LISI 2016 FINANCIAL REPORT
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LISI S.A. is a
Société Anonyme
(public limited company) with
a Board of Directors, with capital of €21,609,550 representing
54,023,875 shares with a nominal value of €0.40. 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, 90008 Belfort-France.
The final annual balance at December 31, 2016 was €742,922,370.
The annual income statement showed a profit of €33,022,190.
The financial year runs over twelve (12) months, from January 1, 2016
to December 31, 2016.
The notes and tables below form an integral part of the Company
financial statements.
3.1
I
ACCOUNTING RULES AND METHODS
The financial statements for 2016 are drawn up in line with current
French accounting regulations. The accounting principles and
policies 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 policies;
–
–
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 2016 were drawn up are identical to those for 2015.
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 policies 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:
Economic
depreciation
Fiscal
depreciation
Software programs
3 years
straight line
3 years
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 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
stock market 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 is probable, the
amount of the future expense is provisioned in proportion to the 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.
3
I
NOTES TO THE COMPANY FINANCIAL STATEMENTS
COMPANY FINANCIAL STATEMENTS
4