Annual report 2006 - Dexia.com

3.2.5. Amounts receivable after more than one
year and within one year (items V. and VII.)
4. NOTES TO THE ANNUAL
FINANCIAL STATEMENTS
RAPPORT DE GESTION
COMPTES CONSOLIDÉS
ANNUAL
FINANCIAL STATEMENTS
Receivables are stated at their nominal value. Allowances are
booked to cover any risk of non-recovery.
3.2.6. Short-term investments and cash assets
(items VIII. And IX)
Cash is stated at nominal value.
Securities are stated at acquisition cost, while the accessorial
costs are recorded in the statement of income in the year in
which they are incurred.
At balance sheet date, impairments are recorded on shortterm
investments and liquid assets if their realization value is
lower than their book value.
Complementary impairments are recorded on these assets in
order to reflect either a change in their realization or market
value, or the risks inherent in the nature of the products concerned
or the activities conducted.
Nevertheless, own shares acquired with a view to cancellation
are valuated at cost as they may only be destroyed further to
the agreement of the Shareholders’ Meeting.
3.3. LIABILITIES
3.3.1. Revaluation surpluses (item III.)
Shares and participating interests that are recorded as longterm
investments may be revaluated in the case of a certain,
permanent increase in their fair value for the company compared
with their book value.
Revaluation surpluses are maintained in this heading until the
realization of the assets concerned or their inclusion in the
capital.
3.3.2. Provisions for liabilities and charges (item
VII.)
At balance sheet date, the Board of Directors, acting with prudence,
sincerity and good faith, examines the provisions to be built
up in order to cover all possible risks or losses that might have
occurred during the financial year or previous financial years.
Provisions relating to previous financial years are regularly reviewed
and reversed if they no longer serve a purpose.
3.3.3. Debts of over one year and up to one year
(items VIII. and IX.)
Debts are stated in the balance sheet for their nominal value.
3.4. OFF-BALANCE SHEET ITEMS
Off-balance sheet items are recorded for the nominal value of
the rights and commitments mentioned in the agreement or
for their assessed value.
Dexia SA is a cross-border holding company which has two permanent
establishments in Paris and Luxembourg. From an accounting
point of view, the financial statements of Dexia SA include
the accounts of Brussels, the Dexia SA head office, and those of
the permanent establishments in Paris and Luxembourg.
4.1. THE BALANCE SHEET TOTAL (BEFORE
INCOME APPROPRIATION)
The balance sheet total was EUR 22,373 million as of December
31, 2006, against EUR 20,942 million as of December 31,
2005, or an increase of 7%.
4.2. ASSETS
FIXED ASSETS
4.2.1. Formation expenses
All the expenses related to the capital increases are recorded
in the assets as “Formation expenses” and are amortized
over a period of five years.
The net book value of formation expenses amounts to
EUR 7.9 million.
Formation expenses include the fees directly associated with
capital increases and expenditure in implementing share
ownership plans aimed at all members of staff of the Group,
namely some 23,000 people in the 30 countries in which the
Dexia Group is active.
4.2.2. Intangible fixed assets
Intangible fixed assets totaled EUR 2.2 million and concerned
the acquisition and the definition of software as well as external
costs related to the development of the website. These
intangible fixed assets are depreciated on a straight-line basis
over a period of three years.
4.2.3. Tangible fixed assets
Tangible fixed assets which have a net book value of EUR 3 million
have a gross acquisition value of EUR 12.3 million.
Property, plant and equipment contribute a gross acquisition
value of EUR 4.2 million and are depreciated on a straight-line
basis over a period of ten years.
Office and IT equipment represented a gross investment of EUR
5 million, depreciated on a straight-line basis at a rate of 25%
whilst vehicles with a gross acquisition value of EUR 0.1 million
are depreciated on a straight-line basis over five years.
Other tangible fixed assets reach EUR 0.1 million and include the
installation of the premises rented (gross acquisition value of EUR
3 million) depreciated on a straight-line basis over the period of
the lease contracts.
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Dexia / Annual Report 2006