2007 Interactive Registration Document - Renault

07 CONSOLIDATED
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
D – Breakdown by currency
DECEMBER 31, 2007 DECEMBER 31, 2006 DECEMBER 31, 2005
BEFORE
AFTER BEFORE
AFTER BEFORE
AFTER
(€ million)
DERIVATIVES DERIVATIVES DERIVATIVES DERIVATIVES DERIVATIVES DERIVATIVES
Euro 23,581 22,595 25,733 24,258 26,559 24,565
Yen 1,268 1,928 1,078 2,507 1,527 3,321
Other 2,600 2,926 3,058 3,104 2,232 2,432
TOTAL FINANCIAL LIABILITIES AND SALES
FINANCING DEBTS (EXCLUDING DERIVATIVES) 27,449 27,449 29,869 29,869 30,318 30,318
25 – FAIR VALUE OF FINANCIAL INSTRUMENTS AND
IMPACT ON NET INCOME
A – Fair value of financial instruments
The carrying amounts on the balance sheet and the estimated fair values
of the Group’s fi nancial instruments are as follows:
(€ million)
Estimated fair values are based on information available on the markets and
calculated using valuation methods appropriate to the types of instrument in
question. However, the methods and assumptions used are by nature theoretical,
and judgment plays a major role in interpreting market data. Adopting different
assumptions and/or pricing methods could therefore have a signifi cant impact
on the values estimated.
Fair values have been determined on the basis of information available at the end
of the year and do not therefore take account of subsequent movements.
In general, when the fi nancial instrument is listed on an active and liquid
market, the last listed price is used to calculate the market value. For unlisted
instruments, market value is determined based on recognised valuation models
that refer to observable market parameters. If Renault has no valuation tools,
particularly for complex products, valuation is carried out by quality fi nancial
institutions.
The main assumptions and valuation methods are as follows:
n securities : the fair value of securities is determined mainly by reference to
market prices;
DECEMBER 31, 2007 DECEMBER 31, 2006 DECEMBER 31, 2005
BALANCE
SHEET VALUE FAIR VALUE
loans: for loans with an original maturity of less than three months and for
fl oating-rate loans, the value recorded on the balance sheet is considered to
be the fair value. Other fi xed-rate loans have been measured by discounting
future cash fl ows using the rates offered to Renault at December 31, 2007,
and December 31, 2006 for loans with similar conditions and maturities;
sales fi nancing receivables: fi xed-rate sales fi nancing receivables have been
estimated by discounting future cash fl ows at rates that would be applicable
to similar loans (conditions, maturity and debtor quality) as at December 31,
2007, and December 31, 2006;
financial liabilities and sales financing debts: the fair value has been
determined by discounting future cash fl ows at the rates offered to Renault
at December 31, 2007 and December 31, 2006 for borrowings with similar
conditions and maturities. For sales fi nancing debts evidenced by securities
issued with a life of less than 90 days, the value recorded on the balance
sheet is considered as the fair value.
224 Registration Document Renault 2007
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BALANCE
SHEET VALUE FAIR VALUE
BALANCE
SHEET VALUE FAIR VALUE
ASSETS
Non-current financial assets 606 599 563 559 577 573
Sales financing receivables 20,430 20,317 20,360 20,329 20,700 20,820
Automobile receivables 2,083 2,083 2,102 2,102 2,055 2,055
Current financial assets 1,239 1,239 2,229 2,229 1,871 1,871
LIABILITIES
Non-current financial liabilities 5,413 5,427 5,430 5,525 5,901 6,098
Current financial liabilities 1,517 1,521 3,715 3,692 2,547 2,518
Sales financing debts 21,196 21,157 21,212 21,296 22,427 22,504
Trade payables 8,224 8,224 7,384 7,384 7,788 7,788
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