Annual report - Alcopa

C. Notes on the Consolidated Financial
Statements
1. Summary of significant
accounting policies
The consolidated financial statements have been
prepared in accordance with Belgian generally
accepted accounting principles. Acquisitions are
accounted for using the book value method by netting
the acquisition cost and the pro-rata share of
stockholders’ equity of the subsidiary at the time
of its acquisition or when it is first included in the
consolidation.
2. Changes in accounting policies
Compared to last year, there were no changes in
accounting policies.
3. Exchange rates
Assets and liabilities are translated into euros at
the closing rate on the balance sheet date. The income
statement is translated using average annual
rates. Foreign exchange rate differences resulting
from the translation of net assets at exchange rates
differing from those applicable at the end of the
preceding year are recorded as a separate component
of stockholders’ equity.
Currency Closing rate Average rate
31/12/2009 2009
(1 € =) (1 € =)
6. Consolidation differences
When a company is consolidated for the first time,
a difference arises between the cost of the shares
acquired and the related share in the company’s
equity. This difference is usually attributable to unrealised
gains or losses on the assets and liabilities
of the acquired company, or to the expected future
profitability of the investment. The differences attributable
to assets and liabilities are imputed to the
relevant items of the balance sheet, and amortised,
written down or written back in the income statement
according to the rules applying to these items.
Any residual intangible difference is recorded on
the consolidated balance sheet as “Consolidation
Differences” and is amortised over a period, which
is defined by the Board of Directors to be in accordance
with the useful or legal life, which can range
from 5 to 20 years.
7. Tangible fixed assets
are capitalised at cost and depreciated over their expected useful life, according to the following
schedule.
Land
Regime Min. Max.
none
Buildings linear 2.5 % 10 %
Furniture and office equipment Linear 10 % 50 %
Installations, machinery linear 10 % 25 %
Rebuilding linear 10 % 20 %
Vehicles linear 20 % 33.33 %
Other tangible fixed assets Linear 33.33 % 100 %
Parking lot linear 20 %
Rented assets linear as of the initial renting month 20 % 33.33 %
Rented cars
linear over the contract term,
less the estimated residual value 20 % 33.33 %
Computer software linear 33.33 % 50 %
Fixed assets under construction
and advance payments linear 0 % 5 %
Leasing and other similar rights Linear over the contract term
The tangible fixed assets are subject to some complementary or extraordinary depreciation when, for
reasons of change or modification in the economical or technological circumstances, their book value
surpasses the company’s useful value.
CHF 1.483600 1.507633
GBP 0.888100 0.889979
PLN 4.104500 4.346925
ZAR 10.666000 11.520642
4. Formation expenses
are capitalised at their acquisition cost and
are amortised on a straight-line basis over 1 to
5 years.
5. Intangible fixed assets
are valued at their acquisition cost and are
amortised.
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