FCC Proudreed Properties 2005 HSBC SG CORPORATE ...

NOTES TO THE ACCOUNTS
Before repartition of the period ending 31 December 2004, the Balance Sheet (presented in list-form)
total is u136,472,069, and the total of the Income Statement for the same period is u23,827,707, with total
losses at u1,622,670.70.
The period is 12 months long and covers 1 January 2004 to 31 December 2004.
The notes that follow are part of Annual Financial Statements.
The accounts were closed on 18 March 2005.
ACCOUNTING RULES AND METHODS
The general accounting rules have been applied according to the following underlying assumptions:
– Continuity of the operation in progress,
– Use for a succession of financial periods,
−
Independence of financial periods
and conform to the general accounting rules as well as those of the presentation of annual accounts.
The method used for the evaluation of the elements comprising the accounting records is the method of
historical costs.
Intangible Assets
−
Purchase of Leasing Contracts In-Progress:
EVALUATION METHODS
Intangible Assets represent the difference between the remaining part of the leasing contract and the fair
value of the contract, before executing the option. The part of the intangible asset related to
building/construction is amortised (derogatory amortisation) at a rate of 4% or 5%.
Tangible/Fixed Assets
Fixed assets are valued at their acquisition price (buying price, accessory costs and cancellation fees
outside of the cost of acquisition of the fixed asset) or, at their production cost.
The book value of tangible assets is compared to their approximate market value, an independent and
updated expert opinion is used as reference for all of the tangible assets, on which grounds no
depreciation has been brought to our attention.
With regard to Property, land is valued on the basis of information provided by the company.
Financial Assets: Investment
Financial Investments are transcribed in the balance sheet at their acquisition price or at their original
cost.
A provision for depreciation is constituted when the utility of the investment, determined in function of
its profitability, its future prospects or its adjusted book value, is inferior to its original book value.
Circulating or Current Assets
The elements listed under circulating assets are receivables noted at their par value minus, when
necessary, the provision in view of bringing them back to their market value.
Amortisation
Fixed assets are subject to a depreciation schedule determined according to the length and probable
conditions of use of these goods. This schedule is, in general, the straight-line method. The net book worth
obtained in this manner is considered to be economically sound.
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