Annual report 2001 - GL events
Annual report 2001 - GL events
Annual report 2001 - GL events
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66 67<br />
Tangible fixed assets<br />
Tangible assets are stated at historic cost and are depreciated on a straight line basis. The depreciation periods generally<br />
used are as follows :<br />
Duration<br />
Office buildings<br />
Industrial buildings<br />
Fixtures and fittings<br />
Industrial equipment and tools<br />
Transport equipment<br />
Office furniture and equipment<br />
20 years<br />
20 years<br />
10 years<br />
2 to 7 years<br />
3 to 5 years<br />
2 to 5 years<br />
Financial assets<br />
Interest held by the Group in non-consolidated companies<br />
are accounted for at the cost of the acquisition of shares.<br />
A provision for depreciation is established if the value in<br />
use of the shares is estimated inferior to the book value.<br />
The value in use is appreciated according to different<br />
criteria among which stands the likely return on<br />
investment of the shares.<br />
Stock and rental equipment<br />
As an exception to generally accepted accounting<br />
principles, rental equipment, capitalized in the statutory<br />
financial statements, is grouped together with the<br />
material stock for rental in the consolidated financial<br />
statements under a specific item of the balance sheet.<br />
This classification allows a distinct appreciation of the<br />
importance of the tangible assets intended for rental and<br />
of those classified as fixed assets and remaining on the<br />
different sites of the group.<br />
The basic method used for the recording and valuation of<br />
the rental equipment is that of historic cost. The one used<br />
for the stock valuation is weighted average cost.<br />
Manufactured products are valued at production cost<br />
which includes direct expenses engaged by the subsidiary<br />
in the production process. Financial expenses are not<br />
included in the calculation of production costs. Work in<br />
progress is valued at production cost, according to degree<br />
of completion.<br />
To establish the depreciation due to wear and tear<br />
resulting from the successive rental of capitalized assets,<br />
the following useful lives are used :<br />
Floors<br />
Furniture<br />
Structures big tops<br />
Grandstands and bleachers<br />
Other rental equipment<br />
Duration<br />
7 to 10 years<br />
4 years<br />
5 to 7 years<br />
5 to 7 years<br />
2 to 7 years<br />
As for the stock of rental equipment, a provision is<br />
determined according to the rotation rate observed in<br />
past periods. In addition, a provision for depreciation is<br />
recorded when the products are considered obsolete or<br />
fail to meet the group’s quality standards.