2007 - April

2.0
Notes to the consolidated financial statements at December 31 st 2007
In line with the variable deferral method, the impacts of any
changes in the tax rate on deferred tax recorded previously
are booked on the income statement during the year in which
such rate changes take effect.
Deferred taxes are determined based on the tax rates that
have been adopted or virtually adopted at the close of
accounts and which are expected to be applied when the
deferred tax asset concerned will be realized or the deferred
tax liability paid.
Deferred tax assets are recognized only if they are likely to
be recovered.
1.30. Share-based payments
The Group’s employees and managers may be granted
warrants or stock options.
Only plans granted as of November 7 th , 2002 and under
which rights were not acquired as at January 1 st , 2005 are
concerned by the application of IFRS 2. Any prior plans are
not valued and are not recorded in the accounts.
method for market intermediaries in terms of valuing
options.
The calculation factors in the following parameters:
The exercise price,
The lock-in period,
The current price of the underlying share,
The expected volatility,
The expected dividends,
The risk-free interest rate over the lock-in period.
The value of the option is recorded on a linear basis between
the date on which the option was granted and its maturity
date, i.e. over the period during which rights are acquired,
factoring in the likelihood of the beneficiary’s presence on
the right acquisition date.
The benefits calculated in this way are recorded under
personnel costs on the income statement, booked against
shareholders’ equity under liabilities in the consolidated
financial statements.
There are no other means of share-based payments within
the Group.
1.32. Post-balance sheet events
The value of assets and liabilities on the balance sheet date
is adjusted when any events occurring after the close of
accounts significantly alter the amounts recorded as on the
closing date. Such adjustments may be made up until the
date on which the financial statements are approved by the
Directors’ Board.
Any other events that do not have any impact on the
accounts are presented in the notes.
Note 2. Significant events over the period
2.1. Acquisitions of companies and additional equity
interests:
AMT
On January 5 th , 2007, APRIL GROUP acquired a 75% stake in
AMT, a wholesale broker specialized in designing, managing
and distributing motorcycle insurance policies. AMT has been
consolidated as of January 1 st , 2007.
Under IFRS 2, an expense must be recorded corresponding
to the cost of services received by the company in return
for the options granted. The amount of this expense is
determined in relation to the value of the option on the date
it was granted (this expense is not re-evaluated during the
option’s life). The allocation date corresponds to the date on
which options are granted.
For each plan, the value of the option has been determined
based on the Black and Scholes model, the benchmark
1.31. Treasury stock
The only shares held as treasury stock are based on the
liquidity agreement.
Treasury stock held by the Group are recorded at their
acquisition cost against shareholders’ equity.
Capital gains or losses on disposals of treasury stock are
booked directly against shareholders’ equity such that the
contingent gains or losses do not affect earnings for the
period.
Febs
On February 19 th , 2007, APRIL GROUP bought out a 10%
stake held by minority shareholders in Febs, taking its
interest in this company’s capital up to 84%.
APRIL Germany
On May 16 th , 2007, APRIL GROUP bought out the 20% stake
held by minority shareholders in APRIL Germany, taking its
interest in this company’s capital up to 100%.
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