Registration document 2007 - Total.com
Registration document 2007 - Total.com
Registration document 2007 - Total.com
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The net periodic pension cost is recognized under “Other<br />
operating expenses”.<br />
S. Consolidated statement of cash flows<br />
The consolidated statement of cash flows prepared in foreign<br />
currencies have been translated into euros using the average<br />
exchange rate of the period. Currency translation differences<br />
arising from the translation of assets and liabilities denominated in<br />
foreign currency into euros using exchange rates at the end of<br />
the period are shown in the balance sheet under “Effect of<br />
exchange rates and changes in reporting entity”. Therefore, the<br />
consolidated statement of cash flows will not agree with the<br />
figures derived from the consolidated balance sheet.<br />
Cash and cash equivalents<br />
Cash and cash equivalents <strong>com</strong>prise cash on hand and highly<br />
liquid short term investments that are easily convertible into<br />
known amounts of cash and are subject to insignificant risks of<br />
changes in value.<br />
Investments with maturity over 3 months and less than<br />
12 months are shown under “Current financial assets”.<br />
Changes in bank overdrafts are included in the financing activities<br />
section of the consolidated statement of cash flows.<br />
Non-current debt<br />
Changes in non-current debt have been presented as the net<br />
variation to reflect significant changes mainly related to revolving<br />
credit agreements.<br />
T. Emission rights<br />
In the absence of a current IFRS standard or interpretation on<br />
accounting for emission rights of CO , the following principles<br />
2<br />
have been applied:<br />
• emission rights granted free of charge are accounted for at<br />
zero book value;<br />
• the liabilities resulting from potential differences between<br />
available quotas and quotas to be delivered at the end of the<br />
<strong>com</strong>pliance period are accounted for as liabilities, at fair<br />
market value;<br />
• spot market transactions are recognized at cost in operating<br />
in<strong>com</strong>e;<br />
• forward transactions are recognized at their fair market value<br />
on the face of the balance sheet. Changes in the fair value of<br />
such forward transactions are recognized in operating in<strong>com</strong>e.<br />
U. Non-current assets held for sale and discontinued<br />
operations<br />
Pursuant to IFRS 5 “Non-current assets held for sale and<br />
discontinued operations”, assets and liabilities of affiliates that are<br />
held for sale are presented separately on the face of the balance<br />
sheet.<br />
Appendix 1 – Consolidated financial statements<br />
Notes to the consolidated financial statement<br />
Net in<strong>com</strong>e from discontinued operations is presented separately<br />
on the face of the statement of in<strong>com</strong>e. Therefore, the notes to<br />
the consolidated financial statements related to the statement of<br />
in<strong>com</strong>e refer only to continuing operations.<br />
A discontinued operation is a <strong>com</strong>ponent of the Group for which<br />
cash flows are independent. It represents a major line of business<br />
or geographical area of operations which has been disposed of<br />
or is held for sale.<br />
V. Information related to the first-time application of IFRS<br />
Pursuant to IFRS 1 “First-time adoption of International Financial<br />
Reporting Standards”, the Group has chosen to apply the<br />
following exemptions:<br />
• offsetting currency translation adjustment (CTA) against<br />
retained earnings, as of January 1, 2004;<br />
• recording unrecognized actuarial losses and gains related to<br />
employee benefit obligations as of January 1, 2004 in retained<br />
earnings;<br />
• no retroactive restatement of business <strong>com</strong>binations that<br />
occurred before January 1, 2004;<br />
• retrospective application of IFRS 2 “Share-based payment”<br />
to all transactions within the scope of IFRS 2 and not solely<br />
to the share-based <strong>com</strong>pensation plans granted after<br />
November 7, 2002.<br />
The other exemptions included in IFRS 1 “First Time Adoption”<br />
have not been applied at the transition date to the IFRS or did<br />
not have any material impact on the consolidated financial<br />
statements.<br />
IAS 32 “Financial Instruments: Disclosure and Presentation” and<br />
IAS 39 “Financial Instruments: Recognition and Measurements”<br />
have been applied as from January 1, 2004. The Group has<br />
decided on an early application in 2004 of IFRS 6 “Exploration for<br />
and Evaluation of Mineral Resources”. This standard is<br />
<strong>com</strong>patible with previously used methods to record exploration<br />
and production costs (see note 1H to the consolidated financial<br />
statements “Oil and gas exploration and producing properties”).<br />
Description of the effects of the transition to IFRS on the net<br />
equity and the results of the Group were provided for in the 2005<br />
<strong>Registration</strong> Document. This information is presented in the note<br />
32 to the consolidated financial statements as of<br />
December 31, 2005.<br />
The financial data for 2004 and 2003 were presented under<br />
French GAAP in the 2004 <strong>Registration</strong> Document.<br />
9<br />
W. Alternative IFRS methods<br />
For measuring and recognizing assets and liabilities, the following<br />
choices among alternative methods allowable under IFRS have<br />
been made:<br />
TOTAL – <strong>Registration</strong> Document 2006 179