2013-vinci-annual-report

Depreciation is calculated on a straight-line basis over an asset’s estimated useful life:
Constructions
10 to 40 years
Other property, plant and equipment
3 to 10 years
The Company applies CNC Opinion 2004-06, issued by the Conseil National de la Comptabilité, on the definition, recognition and measurement
of assets.
3. Investments in subsidiaries and affiliates
Investments in subsidiaries and affiliates are measured at their cost of acquisition. In accordance with CRC Regulation 2004-06, issued by
the Comité de la Règlementation Comptable, on the definition and recognition of assets, VINCI includes the associated acquisition expenses
in the cost of shares. If this cost is greater than the asset’s value in use, an impairment allowance is taken equal to the difference, as an
exceptional item.
Value in use is determined on the basis of the portion of the equity represented by the shares. This portion is adjusted if necessary to take
account of the cash flow prospects for the companies in question.
Capital gains or losses on disposal of shareholdings are recorded under exceptional income and expense.
4. Trade receivables and related accounts
Trade receivables are measured at their nominal value. An impairment allowance is recognised if there is a possibility of non-recovery of
these receivables.
5. Receivables and payables denominated in foreign currency
Receivables and payables denominated in foreign currency are measured at the closing rate or at their hedged rate. Any gains or losses
arising on this translation are recorded in the balance sheet as translation differences. Provisions are taken in respect of any unrealised losses
unless specific rules are laid down in the accounting regulations.
6. Marketable securities
Marketable securities are recognised at their acquisition cost and an impairment loss is recorded whenever the cost is higher than the latest
net realisable value at the period end.
7. Financial instruments
Loans (bonds, bank and intragroup borrowing) are recorded under liabilities at their nominal value. The associated issuance costs are recorded
under deferred expenses, redemption premiums under assets, and issuance premiums under deferred income. These three items are amortised
over the length of the loan.
Loans and advances are recognised at nominal value. In the event of a risk of non-recovery, an impairment allowance is recognised.
Forward financial instruments and derivative financial instruments are measured at the period end. A provision is recognised in the income
statement for any unrealised losses only if the instruments are not designated as hedges.
8. Treasury shares
Treasury shares allocated to share purchase option and performance share plans are recognised under marketable securities.
In accordance with CRC Regulation 2008-15, issued by the Comité de la Règlementation Comptable, a provision is taken as a financial expense
during the period in which the beneficiaries’ rights vest, whenever an expense becomes probable.
Treasury shares not allocated to plans are recorded under other non-current financial assets at their acquisition cost.
An impairment allowance is recognised as a financial expense if the average stock market price of these shares during the last month of the
period is lower than their unit cost. However, shares intended for cancellation are not written down.
Whenever plans are hedged by call options, the premiums paid are recorded under marketable securities when the options hedge share
purchase option plans or performance share plans, and under other non-current financial assets when these options hedge share subscription
option plans.
PARENT COMPANY FINANCIAL STATEMENTS 293