2007 - April

2.0
Notes to the consolidated financial statements at December 31 st 2007
An impairment in value is recorded when the net book value
of intangible fixed assets and goodwill is higher than their
going value, as determined in this way.
The depreciation recorded for goodwill is non-reversible and
may not be written back if the going value for the goodwill in
question climbs back above its book value.
1.17. Financial investments
Financial investments primarily comprise the investments of
insurance companies included in the basis for consolidation,
notably:
Shares, bonds, equity UCITS or bond UCITS included under
the category of “assets available for sale”. These financial
investments are valued on a fair value basis, with any
unrealized gains or losses booked against shareholders’
equity until their disposal. When sold off, any value
adjustments are recorded on the income statement,
Cash-based UCITS included under the category for
“securities held for transaction purposes”. These assets are
valued on a fair value basis, with any unrealized or realized
gains or losses booked on the income statement.
Stakes in cash-based UCITS recorded under investments for
insurance activities may not exceed 20%, in accordance with
the management constraints put in place by the Group.
No financial assets are included in the category for
investments held through to maturity (HTM).
The fair value corresponds to the market value of financial
instruments at year-end.
The vast majority of financial instruments in the portfolio are
listed on an official, regulated or assimilated market. In such
case, the fair value corresponds to the last known stock price
at year-end or the last net asset value published for UCITS.
In certain rare specific cases or if instruments are not listed,
the fair value may correspond to a valuation by the issuer or
contributors.
Recording in the accounts
The Group records financial assets in its accounts as soon as
it becomes a party to the contract in question. The recording
date corresponds to the date on which transactions are
undertaken. The acquisition costs for financial investments
are directly recorded as expenses over the year since they
do not represent a significant value, either individually or
combined.
Depreciation
Financial assets other than those recorded at fair value
through profit and loss are subject to an impairment test at
each close of accounts.
Assets held for sale are depreciated in the event of any
objective signs of a significant and lasting impairment in
value.
An impairment is recorded for securities with capital losses
for over six months or with capital losses representing over
20% at the close of accounts for shares and UCITS that are
not consolidated, booked as “assets held for sale”.
For debt instruments that are recorded as “assets held for
sale”, APRIL GROUP analyzes the following criteria in order to
identify any objective signs of impairment in value:
Issuers’ financial difficulties or probability of bankruptcy;
Payment defaults on interest or the principal.
The amount of this depreciation charge is equal to the
difference between the book value and the estimated
recoverable value. When this concerns unlisted securities,
in the absence of any market value, the amount of the
depreciation charge is determined in relation to the
security’s value in use. This value in use is determined based
on financial criteria that are adapted to the situation of the
security concerned.
Depreciation charges are recorded on the income statement.
For debt instruments: if the instrument’s fair value increases
subsequently as a result of events occurring after the
impairment, the write-back is booked against earnings. For
equity instruments: any impairments in value recorded on
such instruments are only written back against earnings
when the instrument in question is removed.
1.18. Financial futures and hedging operations
No financial futures or hedging operations are used.
1.19. Receivables from insurance operations or
reinsurance accepted
Receivables from insurance operations comprise premiums
acquired but not issued as well as premiums issued but not
collected, after deducting any premium cancellations.
The amount of premiums acquired but not issued is calculated
at each close of accounts in order to associate the premiums
acquired over the period in question.
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