CFE - 2006 annual report - Vinci
CFE - 2006 annual report - Vinci CFE - 2006 annual report - Vinci
3. Exchange rate Currencies Closing rate 2006 Average rate 2006 Closing rate 2005 Average rate 2005 Polska Zloty 3.829 3.918 3.853 4.018 Hungary Forint 251.459 266.478 252.770 248.516 Slovakia Corunna 34.476 37.643 37.853 38.558 US Dollar 1.318 1.250 1.1776 1.1803 Singapore Dollar 2.021 1.992 1.970 2.063 Rial of Qatar 4.797 4.550 4.297 4.511 1 Euro = X Currency E. Intangible assets 1. Research and development Expenditures on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding are recognized in the income statement as an expense as incurred. Expenditures on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes are capitalized if the product or process is technically and commercially feasible and the company has sufficient resources to complete development. The expenditure capitalized includes the cost of materials, direct labour and an appropriate proportion of overheads. Other development expenditures are recognized in the income statement as an expense as incurred. Capitalized development expenditures are stated at cost less accumulated amortization (see below) and impairment losses. 2. Other intangible assets Other intangible assets, acquired by the company, are stated at cost less accumulated amortization (see below) and impair- ment. Expenditure on internally generated goodwill and brands is recognized in the income statement as an expense as incurred. 3. Subsequent expenditure Subsequent expenditures on capitalized intangible assets are capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates, above the performance level defined at the origin. All other expenditures are expensed as incurred. 4. Amortization Intangible assets are amortized using the straight-line method over their estimated useful lives at the following rates: Minimum 5% Operating concessions 33.33% Software’s licenses 1 1 7
1 1 8 F. Goodwill 1. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the company’s share of the net identifiable assets of the acquired subsidiary, jointly controlled entity or associate at the date of acquisition. Goodwill is not amortized but will be subject to an impairment test on an annual basis. Goodwill is expressed in the currency of the subsidiary to which it relates. Goodwill is stated at cost less accumulated amortization and impairment losses. In res- pect of associates, the carrying amount of goodwill is included in the carrying amount of the investment in the associate. 2. Negative goodwill Negative goodwill represents the excess of the fair value of the company’s share of the net identifiable assets acquired over the cost of acquisition. Negative goodwill is recognized immediately in the income statement. G. Property, plant and equipment 1. Measurement & recognition All property, plant and equipment are recorded in assets only when it is probable that future economic benefits will impact the entity and if the cost can be evaluated in a reliable way. These criteria are applicable at the time of initial accounting and for later expenditure. All property, plant and equipment are recorded at historical cost less accumulated depreciation and impairment losses. Historical cost includes the original purchase price and other direct acquisition costs (e.g. non refundable tax, transport). The cost of self-constructed assets includes the cost of materials, direct labour and an appropriate proportion of production overheads. 2. Subsequent expenditures Subsequent expenditures are capitalized only when it increases the future economic benefits embodied in the item of pro- perty, plant and equipment. Repairs and maintenance, which do not increase the future economic benefits of the asset to which they relate, are expensed as incurred. 3. Depreciations Depreciations are calculated from the date the asset is available for use, using the straight-line method over the estimated useful lives of the assets: Trucks: 3 years Vehicles: 3 to 5 years Other material: 5 years Computer installation: 3 years Office machines: 5 years Office equipment: 10 years Constructions: 25 to 33 years
- Page 67 and 68: 6 6 from the left to the right: Mar
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3. Exchange rate<br />
Currencies<br />
Closing rate<br />
<strong>2006</strong><br />
Average rate<br />
<strong>2006</strong><br />
Closing rate<br />
2005<br />
Average rate<br />
2005<br />
Polska Zloty 3.829 3.918 3.853 4.018<br />
Hungary Forint 251.459 266.478 252.770 248.516<br />
Slovakia Corunna 34.476 37.643 37.853 38.558<br />
US Dollar 1.318 1.250 1.1776 1.1803<br />
Singapore Dollar 2.021 1.992 1.970 2.063<br />
Rial of Qatar 4.797 4.550 4.297 4.511<br />
1 Euro = X Currency<br />
E. Intangible assets<br />
1. Research and development<br />
Expenditures on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and<br />
understanding are recognized in the income statement as an expense as incurred.<br />
Expenditures on development activities, whereby research findings are applied to a plan or design for the production of new<br />
or substantially improved products and processes are capitalized if the product or process is technically and commercially<br />
feasible and the company has sufficient resources to complete development.<br />
The expenditure capitalized includes the cost of materials, direct labour and an appropriate proportion of overheads. Other<br />
development expenditures are recognized in the income statement as an expense as incurred.<br />
Capitalized development expenditures are stated at cost less accumulated amortization (see below) and impairment losses.<br />
2. Other intangible assets<br />
Other intangible assets, acquired by the company, are stated at cost less accumulated amortization (see below) and impair-<br />
ment. Expenditure on internally generated goodwill and brands is recognized in the income statement as an expense as<br />
incurred.<br />
3. Subsequent expenditure<br />
Subsequent expenditures on capitalized intangible assets are capitalized only when it increases the future economic benefits<br />
embodied in the specific asset to which it relates, above the performance level defined at the origin. All other expenditures<br />
are expensed as incurred.<br />
4. Amortization<br />
Intangible assets are amortized using the straight-line method over their estimated useful lives at the following rates:<br />
Minimum 5% Operating concessions<br />
33.33% Software’s licenses<br />
1 1 7
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