2005 Annual Report - Touax

Financial information concerning the assets,
financial position and results of the issuer
annual report 2005
note 29.3. Non-application of standards IAS 32 and
39 in the adjusted IFRS 2004 financial statements
In accordance with the transitional provisions specifically
provided for in standards IAS 32 “Financial
instruments: disclosure and presentation”, IAS 39
“Financial instruments: recognition and measurement”
and IFRS 1 “First-time adoption of IFRS”, the
TOUAX Group is applying the standards IAS 32 and
IAS 39 with effect from 1 January 2005, but is not
making any adjustment under these standards for
the presentation of the opening balance sheet as at
1 January 2004 and of the comparative financial statements
for 2004.
Consequently, the presentation and recognition of
financial instruments and hedging transactions
remain unchanged in the IFRS adjusted 2004 consolidated
accounts compared to the French accounting
treatment.
The application of these standards mainly concerns
four interest rate swap transactions in respect of the
Group’s borrowings (cf. page 18).
note 29.4. Principles for the preparation of the
opening IFRS balance sheet as at 1 January 2004
and exceptions to the general principle of
retrospective application
In accordance with the IFRS 1 standard, the IFRS
consolidated opening balance sheet of the TOUAX
Group, drawn up on the transition date of 1 January
2004, provides initial balances for the assets and liabilities,
recorded and valued in accordance with IFRS
and as if the standards had been applied since the
beginning of the consolidation of the Group (excluding
the impact of financial instruments – cf. 4.3). All
of the adjustments required by the retrospective
application of the IFRS accounting standards are
accounted for in the shareholders’ equity as at
1 January 2004 in accordance with IFRS 1.
However, the TOUAX Group has made use of the following
exceptions which are authorized by IFRS 1:
2 The “Consolidation reserves” include the
“Translation reserves” accumulated as at 1 January
2004 at the time of translation of the accounts of
foreign businesses and subsidiaries, applying the
closing rate method. The translation reserves thus
reclassified are no longer recycled in the result in
the event of a disposal of the foreign businesses or
subsidiaries concerned after 1 January 2004.
2 Acquisitions and business combinations occurring
before 1 January 2004 have not been adjusted in
accordance with the provisions of standard IFRS 3.
Furthermore, Pursuant to the option provided by
standard IFRS 2 “Share-based payment”, which
concerns stock option and share schemes, only instruments
granted after 7 November 2002 and not yet
exercisable as at 1 January 2005 have been taken
into account; the impact of the scheme involving
11,001 equity warrants on the Group’s accounts is
negligible and consequently has not given rise to an
adjustment.
The information relating to the various schemes
appears in the chapter entitled “Information on capital”
in the reference document.
Finally, the Group has not taken up the option provided
by standard IFRS 1 of revaluing certain categories
of tangible fixed assets.
note 29.5. Principles applied by TOUAX in the IFRS
financial statements: differences as compared
to the principles applied under French GAAP / IFRS
Options / Main impacts
This analysis is carried out on the basis of the main
themes and is focused on the IFRS standards which
have the most significant impacts on the adjustment
of the 2004 financial statements under IFRS.
note 29.5.1. Presentation of the IFRS balance sheet
Presentational principles
In accordance with standard IAS 1 “Presentation of
financial statements”, the presentation of the consolidated
balance sheet of TOUAX under IFRS complies
with the classification of assets and liabilities into
current and non-current elements. The balances in
the balance sheet under French GAAP have been
reclassified in accordance with these criteria.
Main reclassifications in the consolidated balance
sheets as at 1 January and 31 December 2004
The main reclassifications on the assets side concern:
2 the breakdown of the other receivables into current
and non-current assets in accordance with their
maturities (less than one year or more than one year
at the closing date),
2 presentation of deferred tax assets on a separate
line of the balance sheet in the non-current assets.
The main reclassifications on the liabilities side
concern:
2 the breakdown of borrowings and financial debts
into current and non-current liabilities in accordance
with their maturities (less than one year or
more than one year at the closing date),
2 presentation of deferred tax liabilities on a separate
line of the balance sheet in the non-current liabilities.
note 29.5.2. Presentation of the IFRS income
statement
As in the French format, the TOUAX Group has chosen
to continue to present its consolidated income
statement under IFRS by both type and function.
In view of the fact that the “exceptional” expenses and
income were already included in the operating income
under French standards, the only acknowledged
impact of the transition to IFRS is the presentation of
106
Consolidated accounts