Annual report 2001 - GL events

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Tangible fixed assets
Tangible assets are stated at historic cost and are depreciated on a straight line basis. The depreciation periods generally
used are as follows :
Duration
Office buildings
Industrial buildings
Fixtures and fittings
Industrial equipment and tools
Transport equipment
Office furniture and equipment
20 years
20 years
10 years
2 to 7 years
3 to 5 years
2 to 5 years
Financial assets
Interest held by the Group in non-consolidated companies
are accounted for at the cost of the acquisition of shares.
A provision for depreciation is established if the value in
use of the shares is estimated inferior to the book value.
The value in use is appreciated according to different
criteria among which stands the likely return on
investment of the shares.
Stock and rental equipment
As an exception to generally accepted accounting
principles, rental equipment, capitalized in the statutory
financial statements, is grouped together with the
material stock for rental in the consolidated financial
statements under a specific item of the balance sheet.
This classification allows a distinct appreciation of the
importance of the tangible assets intended for rental and
of those classified as fixed assets and remaining on the
different sites of the group.
The basic method used for the recording and valuation of
the rental equipment is that of historic cost. The one used
for the stock valuation is weighted average cost.
Manufactured products are valued at production cost
which includes direct expenses engaged by the subsidiary
in the production process. Financial expenses are not
included in the calculation of production costs. Work in
progress is valued at production cost, according to degree
of completion.
To establish the depreciation due to wear and tear
resulting from the successive rental of capitalized assets,
the following useful lives are used :
Floors
Furniture
Structures big tops
Grandstands and bleachers
Other rental equipment
Duration
7 to 10 years
4 years
5 to 7 years
5 to 7 years
2 to 7 years
As for the stock of rental equipment, a provision is
determined according to the rotation rate observed in
past periods. In addition, a provision for depreciation is
recorded when the products are considered obsolete or
fail to meet the group’s quality standards.