Annual report 2004 (English) - PDF 3546K - Imperial Tobacco

92
Altadis Group 2004 Financial Information
Notes to 2004
Consolidated Financial Statements
Thousand of euros
2004 (*)
Net sales 20,977
Consolidated income 1,709
Total assets 1,656,806
(*) Figures consolidated at the Altadis Group since the
acquisition date.
3. Distribution of the Parent
Company’s income
The proposed distribution of the Parent Company’s
income that the directors will submit for approval
by the Shareholders’ Meeting is to distribute: a
dividend of € 0.9 per share, with a charge to
income for the year of Altadis, S.A. and the
remaing balance will be used to increase the
balance of the Parent Company’s voluntary
reserves.
4. Valuation standards
The main valuation methods applied in preparing
the 2004 consolidated financial statements were as
follows:
a) Intangible assets
Intangible assets are stated at cost, as follows:
1. The balance of the “Intellectual Property and
Trademarks” account includes the acquisition
cost of the rights on certain brands of cigars,
little cigars and cigarettes and/or the value
assigned to them in the consolidation process.
The Group amortizes these rights on a straightline
basis over a period of 20 years.
2. Computer software is recorded at acquisition
cost and is amortized on a straight-line basis
over five years. The related maintenance costs
are expensed currently.
3. The rights under financial lease contracts are
recorded as intangible assets at the cash value
of the related assets, and the total debt for lease
payments plus the amount of the purchase
option are recorded as a liability. The difference
between the two amounts, which represents the
interest expenses on the transaction, is recorded
as a deferred expense and is allocated to income
each year by the interest method. These rights
are amortized by the straight-line method over
the useful lives of the related assets.
The Group records the related allowances to
recognize possible losses of a reversible nature on
its intangible assets, calculated as the differences
between their net book value and their realizable
or market value.
When the circumstances giving rise to such
differences are permanent and, accordingly, the
losses are irreversible, the Group reduces the value
of the related asset by recording extraordinary
amortization.
b) Tangible fixed assets
Tangible fixed assets are carried at cost, revalued,
in the case of certain consolidated companies,
pursuant to applicable legislation in the various
countries. The increase in the amounts of
depreciation taken by consolidated companies in
2004 due to the effect of these revaluations was
not material.
Upkeep and maintenance expenses are expensed
currently. However, the costs of improvements
leading to increased capacity or efficiency or to a
lengthening of the useful lives of the assets are
capitalized.
The consolidated companies depreciate their
tangible fixed assets by the straight-line method at
annual rates based on the years of estimated useful
life of the related assets. The rates used are as
follows: