2007 - Pinguely Haulotte

Consolidated financial statements of December 31st, 2007
Note 5
Principles and methods of
measurement for the income
statement
5.1 Revenue recognition
“Sales and revenue”includes the sale of
goods and services comprising notably:
- Sales self-financed by the customer;
- Sales funded through back-to-back
arrangements and the corresponding
financial income (note 3.7);
- Sales including financial guarantees by
Haulotte Group S.A. to permit the
customer to obtain financing (note 3.7);
- Rental of aerial work platforms;
- Rendering of services.
Revenue from the sale of goods is
recognized net of value-added tax on
the date the risks and rewards of
ownership are transferred to the buyer
which generally corresponds to the date
of shipment of the products to the
customer after obtaining adequate
assurance that the contractual payment
will be made.
Financial income in connection with
back-to-back leases is recognized on the
basis of the effective interest rate.
Revenue from services is recognized
during the period in which the services
are rendered.
5.2 Cost of goods sold
The cost of goods sold includes direct
production costs, factory overhead,
changes in inventory, provisions for
inventory losses, warranty costs, fair value
adjustments of currency hedges and
interest expense paid in connection with
back-to-back arrangements.
5.3 Selling expenses
This item includes notably costs related
to sales and commercial activity and
allowances to and reversals of provisions
for uncollectible trade receivables.
5.4 General and administrative
expenses
This item includes indirect rental costs,
administrative and management
expenses.
5.5 Research and development
expenditures
Research expenditures are recognised
as an expense for the period in which
there are incurred.
Development expenditures are
expensed in the period except when
they meet the criteria defined under
IAS 38 (cf. 3.2.a) for recognition as
intangible assets. This concerns
expenditures incurred in connection
with development projects for new
categories of machines or components
considered technically viable with a
probability of generating future
economic benefits.
5.6 Other operating income and
expenses
This heading includes:
- Gains and losses from disposals except
those by rental companies;
- The amortization of development
expenditures;
- Income or expenses related to litigation
of an unusual, abnormal or infrequent
nature (recognized under “Net income
from management operations”of note
37).
5.7 Current operating income
Current operating income covers all
income and expenses directly relating
to Group activities, whether representing
recurring items of the normal operating
cycle or events or decisions of an
occasional or unusual nature and
including extraordinary items.
5.8 Cost of net financial debt
Cost of net financial debt include total
finance costs consisting primarily of
interest expense (according to the
effective interest rate) as well as the fair
value adjustments of interest rate hedges.
5.9 Other financial income and
expenses
This item includes income from cash and
cash equivalents (interest income, gains
and losses from the disposal of shortterm
securities, etc.).
5.10 Earnings per share
Earnings per share presented at the
bottom of the income statement are
determined by dividing the net income
of Haulotte Group S.A. for the period by
the weighted average number of
ordinary shares outstanding during the
period excluding treasury shares.
Fully diluted earnings per share are
calculated on the basis of the average
number of shares outstanding during
the year adjusted for the dilutive effects
of equity instruments issued by the
companies such as stock options.
ENGLISH