2007 - Pinguely Haulotte

Notes to statutory accounts
A. SIGNIFICANT EVENTS
In 2007 sales growth remained
particularly robust, increasing 27% over
fiscal year 2006.
Haulotte Group opened three new sales
subsidiaries in the period in Mexico, Dubai
and Argentina.
B. SIGNIFICANT
ACCOUNTING POLICIES
The principles used to determined
earnings remain unchanged as
compared with previous reporting
periods except for the matter listed in
the B.1. paragraph.
Company accounts for the financial year
to December 31st, 2007 have been
prepared on presented persuant to
applicable accounting standards, and
keeping with the principles of prudence
discreteness of accounting periods and
going concern.
The main accounting policies applied
by the company are as follow.
B.1 Change in accounting methods:
acquisition costs of investments
Pursuant to recommendation 2007-C of
the Comité d’Urgence of the CNC (Conseil
Nationale de la Comptabilite) of 15 June
2007, Haulotte Group has changed the
accounting method used for acquisition
costs of investments. Commissions, fees
and transfer rights relating the acquisition
of investments were previously expensed.
Starting 1 January 2007, these costs have
been included in the cost price of the
investments and are subject to a special
tax depreciation over a period of five
years.
This change in accounting policy does
not have a material impact on the
financial statements for the fiscal year
ended 31 December 2007.
B.2 Fixed assets
Intangible assets are recognized at their
purchase price, excluding incidentals
and financial charges.
Software is amortized on a straight-line
basis over 3 to 7 years according to their
useful lives.
Models and designs are amortized over
5 years.
Goodwill is not subject to amortization.
When necessary, a depreciation expense
is recorded for impairment.
Research and development expenditures
are expensed in the period incurred.
B.3 Property, plant and equipment
Property, plant and equipment are
recognized in the balance sheet at
purchase cost or production cost and
do not include borrowing costs.
Property, plant and equipment are
amortized on a straight-line basis over
their expected useful lives.
When, a given fixed asset includes
components with material relative values
and expected useful lifes that differ
from that of the fixed asset itself,
specific components are identified. These
components are subject to specific
depreciation rates that are specific to
their own expected useful lives.
The basis for calculating the depreciation
is the purchase price less the estimated
residual value, when applicable, at the
end of the expected useful life.
Useful lives are defined for each category
of fixed asset. Usefull lives usually are as
follows:
Plant buildings:
- main component: 40 years
- other components: 10 to 30 years
Building fixtures and improvements
- main component: 10 to 40 years
- other components: 5 to 20 years
Plant equipment:
- main component: 10 to 15 years
- other components: 4 to 40 years
Other installations and equipment:
3 to 20 years
Transportation equipment: 5 years
Computer and office equipment:
3 to 10 years
Office furniture: 3 to 10 years
Residual values and the useful lives are
reviewed at the end of each period and
adjusted when necessary.
When the carrying value of an asset is
lower than its recoverable amount, an
impairment is immediately recorded
reducing it to the latter.
• Regulated tax reserves
Regulated reserves include provisions
for excess tax depreciation applied on
the basis of the most favourable tax rules.
B.4 Financial assets
• Investments and share in subsidiaries
Investments are recognized in the balance
sheet at historical cost that includes the
acquisition costs such as transfer rights,
commissions and fees directly attributable
to the acquisition of the investments.
At year-end their carrying value is
compared with their value in use. This
latter value is determined in reference to
the share in net equity and the earnings
prospects. When applicable, a provision
for impairment is recorded. When
necessary, additional provisions for
impairment are recognized for intra-group
assets (receivables, current accounts) and
a provision for charges is recorded if
necessary.
ENGLISH