Annual report 2006 - Dexia.com

NOTES TO THE
FINANCIAL STATEMENTS
1. PRESENTATION OF
THE FINANCIAL STATEMENTS
3.1.2. Foreign currency translation into euros
Monetary assets, liabilities, rights and commitments denominated
in foreign currencies are translated into euros at the last
day average year-end exchange rate.
Non-monetary items are translated into euros at the exchange
rate ruling in effect on the transaction date.
Foreign currency income and expense are translated into euros
at the exchange rate ruling in effect on the date on which the
income or expense is recognized in the statement of income.
Dexia SA presents its financial statements before
appropriation.
The profit for the 2006 financial year amounts to EUR 1,317.7
million. The profit carried forward from the previous year
stands at EUR 743.5 million, making a total profit for appropriation
of EUR 2,061.2 million. Proposal to appropriate the
profit thus:
• to the legal reserve up to EUR 35 million;
• to the available reserve up to EUR 300 million;
• to the payment of a gross dividend of 0.81 EUR on each
share;
• with the balance to be transferred to the profit carried
forward.
2. FINANCIAL STATEMENTS
AND CHART OF ACCOUNTS
Dexia SA, a financial firm, is a company governed by Belgian
law whose financial instruments are authorized for trading in a
regulated Belgian market, and it is therefore subject to the obligation
to publish yearly financial statements as prescribed by the
Belgian Company Code and its decree of application dated January
30, 2001.
The accounting plan is presented in accordance with the accounting
plan prescribed in the Royal Decree of September 12, 1983,
amended by the Royal Decree of August 4, 1996.
The items provided for in the accounting plan that do not apply
to Dexia have been excluded.
The financial statements are presented in thousands of euros.
3.2. ASSETS
3.2.1. Formation expenses (item I.)
Formation expenses are recorded as an asset and amortized
on a straight-line basis at the rate of at least 20% per year.
3.2.2. Intangible fixed assets (item II.)
License acquisitions, software definition and the external costs
related to the development of the website of Dexia Group
are recorded as intangible fixed assets when the acquisition
price is at least equal to EUR 495.79 per item, or when delivery
is broken down into partial shipments representing less
than EUR 495.79 each but the total delivery is at least EUR
495.79.
Intangible fixed assets recorded in the assets are depreciated
over a maximum of 5 years.
Furthermore, the internal costs related to the development of
software and the website are entirely charged in the financial
year in which they are exposed.
3.2.3. Tangible fixed assets (item III.)
If necessary, exceptional depreciations will be effected so as to
align the accounting value of fixed assets to their utilization
value for the company by virtue of their alteration or changes
of economic or technological circumstances.
Exceptional depreciations are reversed if they are no longer
justified.
3.2.4. Financial assets (item IV.)
RAPPORT DE GESTION
COMPTES CONSOLIDÉS
ANNUAL
FINANCIAL STATEMENTS
3. ACCOUNTING POLICIES
3.1. GENERAL POLICIES
3.1.1. Legislation
Accounting policies are in conformity with the Royal Decree
of January 30, 2001, in application of the Belgian Company
Code.
If legislation allows options or authorizes a waiver, the accounting
policies hereafter shall mention the option chosen of
whether such a waiver has been applied.
Participating interests and shares are stated at acquisition cost
or contribution cost. Related transaction costs are recorded
directly in the statement of income.
Impairments are recorded in the case of capital losses or lasting
depreciation. They are determined by reference to the
financial position, profitability and prospects of the company
in which shares and/or equity interests are held.
Participating interests and shares may also be revalued. For
this it is necessary that their value, determined on the basis
of their utility to the company, presents a certain and lasting
surplus in relation to their book value.
Debts appearing under financial fixed assets are valuated
according to the same principles as debts at more than one
year and one year at the most.
Dexia / Annual Report 2006 | 219