Registration document 2007 - Total.com

Impact on net income
The amount of the cost of net debt after hedging instruments is disclosed in the consolidated statement of income under “Cost of net
debt”.
The effective interest rate resulting from the cost of net debt approximates market conditions for the current debt. This effective rate may
differ substantially from the interest rate of non-current loans as disclosed above, as the hedging instruments of interest rates are swaps
that convert Group financing conditions to short-term market conditions (3-month average).
The 2006 gain for hedging instruments on debenture loans amounts to 18 M€ after tax ((23) M€ expense in 2005 and (12) M€ expense in
2004).
B) Current borrowings, bank overdrafts and related financial instruments
Current borrowings consist mainly of commercial papers or treasury bills or draws on bank loans. These instruments bear interest at rates
that are close to market rates.
As of December 31, (in M€) 2006 2005
Current financial debt and bank overdrafts 3,348 2,928
Current portion of non-current financial debt 2,510 992
Current borrowings and bank overdrafts 5,858 3,920
Current portion of financial instruments for interest rate swaps liabilities - 6
Other current financial instruments - liabilities 75 27
Other current financial liabilities (note 27) 75 33
Current deposits beyond 3 months (3,496) -
Current portion of financial instruments for interest rate swaps - assets (341) (44)
Other current financial instruments - assets (71) (290)
Current financial assets (note 27) (3,908) (334)
Current borrowings, bank overdrafts and related financial assets and liabilities, net 2,025 3,619
Changes in the value of current financial instruments are, in accordance with the methods described in note 1M to the consolidated
financial statements, recognized in the net income of the period under “Financial interest on debt”, except for instruments qualified as net
investment hedge, which are recognized directly in shareholders’ equity, for an amount of (5) M€ as of December 31, 2006 ((146) M€ as of
December 31, 2005).
21) Other creditors and accrued liabilities
Appendix 1 – Consolidated financial statements
Notes to the consolidated financial statement
As of December 31, (in M€) 2006 2005
Advances from customers 1,430 1,416
Accruals and deferred income 163 253
Payable to states (including taxes and duties) 7,204 7,644
Payroll 879 1,015
Other 2,833 2,741
Total 12,509 13,069
9
TOTAL – Registration Document 2006 213