Registration document 2007 - Total.com

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31) Other information
A) Research and development costs
Research and development costs incurred by the Group in 2006
amounted to 569 M€, corresponding to 0.4% of the turnover.
The staff dedicated in 2006 to these research and development
activities are estimated at 4,091 people.
B) Taxes paid to Middle East oil-producing countries for
the portion which TOTAL held historically as concessions
Taxes paid for the portion that TOTAL held historically as
concessions (Abu Dhabi offshore and onshore, Dubai offshore,
Oman and Abu Al Bu Khoosh) included in operating expenses
amounted to 2,906 M€ in 2006 (2,242 M€ in 2005).
C) Emission rights
The principles governing the accounting for Emission Rights are
presented in the note 1T to the consolidated financial
statements.
At December 31, 2006, the Emission Rights delivered to Group
sites were sufficient with respect to the emissions in 2006. Thus,
the Group recognized no provisions for allowances to be returned.
32) Arkema spin-off
The spin-off of Arkema led to the distribution of Arkema shares to
TOTAL shareholders (other than TOTAL S.A). This operation can
be analyzed as an exchange of non-monetary assets for TOTAL
S.A. shareholders.
As International Financial Reporting Standards (IFRS) does not
contain specific rules for this type of transaction, the accounting
treatment of the spin-off in TOTAL’s consolidated financial
statements has been based on Generally Accepted Accounting
Principles in the United States (U.S. GAAP), and more particularly
on opinion APB 29 (Accounting Principles Board Opinions)
“Accounting for Non-monetary Transactions”.
All assets and liabilities which were spun off have been
derecognized on the basis of their net book value, with a
corresponding decrease of consolidated shareholders’ equity and
no impact on the Group’s consolidated net income.
The spin-off of Arkema was approved by the Shareholders’
Meeting held on May 12, 2006. Since Arkema’s results for the
period between April 1, 2006 and May 12, 2006, were not
material, the deconsolidation has been completed on the basis of
Arkema book values as of March 31, 2006, also taking into
account the capital increase that took place in April 2006.
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Appendix 1 – Consolidated financial statements
Notes to the consolidated financial statement
TOTAL – Registration Document 2006
In accordance with IFRS 5 “Non-current assets held for sale and
discontinued operations”, the contribution of Arkema entities has
been reported as discontinued operations since Arkema can be
clearly distinguished and has been spun off in a single and
coordinated plan.
Financial information related to the Arkema’s contribution to the
consolidated accounts is presented below. This contributive
information is not directly comparable to the combined and proforma
accounts filed by Arkema for the purpose of its listing, as
the latter have been based on specific conventions mainly related
to the consolidation perimeter, accounting options and indicators.
Tax losses of Arkema entities, as they occurred, have been used
in the consolidated tax return of the Group.