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 u111,288,612, and the total of the Income Statement for the same period is u16,177,586, with total
losses at u316,203.90.
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 following 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 that of historical
costs.
EVALUATION METHODS
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 this basis, a provision for
depreciation of u134,000 has been constituted for the Trappes building.
With regard to Property, land is valued on the basis of information provided by the company.
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.
The principal schedules of depreciation used are as follows:
− Buildings 20 to 25 years
− Plant Assets 10 years
− Fixtures 20 years
Contingent Liability
The provision for empty units is currently u277,840.
Deferred Charges
The following deferred charges include the acquisition cost of the following assets:
− Registration duties
− Notary fees and compensation
− Tax Publicity Foncière
The amortisation schedule retained in accounting is 5 years. The payment is calculated, au prorata
temporis, from the acquisition date of the corresponding assets.
177