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I
NOTES TO THE COMPANY FINANCIAL STATEMENTS
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 head office is based at 6 rue Juvénal
Viellard, Grandvillars, France.
The final annual balance at December 31, 2017 was €886,698,376. The
annual income statement showed a profit of €20,110,606.
The financial year runs over twelve (12) months, from January 1, 2017 to
December 31, 2017.
The notes and tables below form an integral part of the Company
financial statements.
3.1
I
ACCOUNTING PRINCIPLES AND POLICIES
The financial statements for 2017 are drawn up in line with current
French accounting regulations. The accounting principles and policies
have been applied in linewith the prudence principle andwith 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 2017 were drawn up are identical to those for 2016.
The preparation of financial statements requires LISI tomake 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 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 fromeach 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 showany 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.
LISI 2017 FINANCIAL REPORT
COMPANY FINANCIAL STATEMENTS
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