Annual report 2001 - GL events
Annual report 2001 - GL events
Annual report 2001 - GL events
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4<br />
2-2-4 Methods of Currency Translation for the Consolidation of Foreign Subsidiaries :<br />
The financial statements of the foreign subsidiaries have<br />
been translated using the following methods :<br />
• share capital and reserves are converted at the historic rate,<br />
• the balance sheet (not including share capital and<br />
reserves) is converted at year end rate,<br />
• the income statement is converted at average rate.<br />
The translation difference as a result of the application of<br />
historic rates and the average rates, compared to year end<br />
rate, are charged to the consolidated reserves (for the<br />
proportion relative to the group).<br />
2-2-5 Elimination of intra-group transactions and balances<br />
All reciprocal balance sheet accounts between group companies are eliminated. Other transactions between group<br />
companies (purchases and sales, dividends, etc.) as well as the estimated expenses on the consolidated trade investments<br />
are eliminated.<br />
2-2-6 Year end date<br />
A situation is established at 31 December for the companies with year end date other than the 31st of December <strong>2001</strong>. This<br />
concerns Espace Eiffel Branly and Owen Brown which have fiscal years ending at a different date.<br />
2-3 Method and Valuation Policy<br />
Goodwill<br />
Goodwill appears on the balance sheet at its historic value<br />
which corresponds to the price paid or its estimative value<br />
of valuation at the time of the integration within the<br />
scope of consolidation.<br />
Goodwill is not amortized. A provision is recorded, when<br />
the carrying value is inferior to book value. The carrying<br />
value is estimated for each company on the basis of<br />
economic criteria which depends more specifically on net<br />
cash flow capacity, added value and the value of the<br />
rental equipment and of the tanglible fixed assets.<br />
Acquired goodwill<br />
Acquired goodwill is amortized on a straight line basis over five years.<br />
Other intangible fixed assets<br />
Expenses incurred on research and development are recorded within operating charges.<br />
Intangible fixed assets are amortized on a straight-line basis. The amortization periods used are as follows :<br />
Duration<br />
Set-up costs<br />
Software<br />
Concessions and patents<br />
3 years<br />
1 to 3 years<br />
Based on residual useful life of patents concerned.
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