Registration document 2007 - Total.com

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