Annual report 2001 - GL events

4
Stock of consumable materials, of merchandise and
work-in-progress
They are classified as current assets and are valued at their
last purchase price ; depreciation is recorded when the
products become obsolete, non usable or not in
compliance with the quality standards of the group.
Capital leases
Real estate acquired by way of a capital lease is recorded
as a fixed asset at the value of the asset at the date of
entry into the scope. Other tangible assets acquired via
capital leases with an initial value of more than € 75 000
are recorded either as fixed assets or as rental equipment
for the value of the assets at the time of the contract
conclusion. These assets are amortized or depreciated
according to the methods described above. The capital
part of the debt remaining due is recorded in financial
debts. The rental charges recorded for the financial year
are then adjusted.
Accounts receivable and debts
Accounts receivable and debts are valued at nominal value.
Balances denominated in foreign currencies, and which are
not subject to a hedging contract for settlement, are
converted at the year-end exchange rate.
Accounts receivable are analyzed on a case by case basis, and
a provision for doubtful debts is set up in order to take into
account any potential recovery difficulties.
Short-term investments
Short-term investments are valued at their acquisition cost.
A provision for depreciation is established when the cost of
acquisition is lower than the current value. The current value
corresponds to the average quotation price of the last month
for the listed shares, and to the probable value of negotiation
for non listed shares.
Taxes
• Current taxes :
Current taxes are calculated according to tax rates applicable
in each country. Regarding French companies, there is a
group tax consolidation agreement of which
GENERALE LOCATION
GL ESPACE & DECOR
GL MOBILIER
ISF
SF PROTECTION
SFI GAUTHRIN
ACTION DEVELOPPEMENT
FINANCIERE PAR 3
MEUBLEXPO
ALTITUDE
HALL EXPO
DECORAMA
Générale Location is head and which includes the following
companies :
FABRIC EXPO
MENUISERIE EXPO
MONT EXPO
MONT EXPO PARIS
STANDARD DECORATION
EXPO SERVICE NICE
GL IMAGE
GL LUMIERE & SON
POLYGONE VERT
RANNO ENTREPRISE
EXPOLOK
The subsidiaries book their tax as if they were taxed separately. The tax consolidation has generated a tax saving of 1 505 K€
entered in the accounts of Générale Location.
• Deferred taxes :
Deferred taxes are recorded in order to take into account the
differences possibly existing between the accounting value of
an asset or a liability and the tax value. They are determined
using the liability method.
Deferred tax assets are recorded if their recovery is not linked
to future results or if it is probable that the company will
recover them thanks to a taxable benefit expected during the
course of that period.
Provisions for liabilities and charges
Provisions are established in order to meet the potential costs related to litigations and other liabilities.