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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.
The impact of the expenses 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 obligationmust 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) Income tax
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.
3.2
I
DETAIL OF THE BALANCE SHEET ITEMS
3.2.1 Gross tangible and intangible fixed assets
(in thousands of euros)
At 12/31/2016
Acquisitions
Disposals/
Deconsolidations
At 12/31/2017
Start-up and development costs
Other intangible fixed asset items
474
46
45
475
Total 1 Intangible assets
474
46
45
475
Land
117
79
38
Buildings on freehold land
364
288
76
Buildings on non-freehold land
Buildings, installations, fixtures and fittings
General installations, fixtures and fittings
531
531
Office and IT equipment, furniture
501
2
503
Total 2 Tangible assets
1,513
2
367
1,148
Tangible assets in progress
134
1,472
0
1,606
Total 3 Tangible assets in progress
134
1,472
0
1,606
TOTAL
2,121
1,520
412
3,229
The item “Tangible assets in progress” is comprised of expenses committed to the future relocation of the LISI S.A. head office.
LISI 2017 FINANCIAL REPORT
COMPANY FINANCIAL STATEMENTS
4