FCC Proudreed Properties 2005 HSBC SG CORPORATE ...
FCC Proudreed Properties 2005 HSBC SG CORPORATE ...
FCC Proudreed Properties 2005 HSBC SG CORPORATE ...
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PROUDREED FRANCE<br />
NOTES TO THE ACCOUNTS<br />
Before repartition of the period ending 31 December 2004, the Balance Sheet (presented in list-form)<br />
total is u86,772,518, and the total of the Income Statement for the same period is u15,023,098, with total<br />
gains at u806,407.39.<br />
The period is 12 months long and covers 1 January 2004 to 31 December 2004.<br />
The notes that follow are part of Annual Financial Statements.<br />
The following accounts were closed on 18 March <strong>2005</strong>.<br />
ACCOUNTING RULES AND METHODS<br />
The general accounting rules have been applied according to the following underlying assumptions:<br />
− Continuity of the operation in progress,<br />
− Use for a succession of financial periods,<br />
− Independence of financial periods<br />
and conform to the general accounting rules as well as those of the presentation of annual accounts.<br />
The method used for the evaluation of the elements comprising the accounting records is that of historical<br />
costs.<br />
EVALUATION METHODS<br />
Intangible Assets<br />
− Purchase of Leasing Contracts In-Progress:<br />
Intangible Assets represent the difference between the remaining part of the leasing contract and the fair<br />
value of the contract, before executing the option. The part of the intangible asset related to<br />
building/construction is amortised (derogatory amortisation) at a rate of 4% or 5%.<br />
Tangible/Fixed Assets<br />
Fixed assets are valued at their acquisition price (buying price, accessory costs and cancellation fees<br />
outside of the cost of acquisition of the fixed asset) or, at their production cost.<br />
The book value of tangible assets is compared to their approximate market value, an independent and<br />
updated expert opinion is used as reference for all of the tangible assets, on which grounds no<br />
depreciation has been brought to our attention.<br />
With regard to Property, land is valued on the basis of information provided by the company.<br />
Financial Assets: Investment<br />
Financial Investments are transcribed in the balance sheet at their acquisition price or at their original<br />
cost.<br />
A provision for depreciation is constituted when the utility of the investment, determined in function of<br />
its profitability, its future prospects or its adjusted book value, is inferior to its original book value.<br />
Circulating or Current Assets<br />
The elements listed under circulating assets are receivables noted at their par value minus, when<br />
necessary, the provision in view of bringing them back to their market value.<br />
Amortisation<br />
Fixed assets are subject to a depreciation schedule determined according to the length and probable<br />
conditions of use of these goods. This schedule is, in general, the straight-line method. The net book worth<br />
obtained in this manner is considered to be economically sound.<br />
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