2005 Annual Report / CrÃ©dit Agricole (Suisse) SA

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28 – 2005 Annual Report / Crédit Agricole (Suisse) SA2. Accounting and valuation principles2.1 Principles for preparation of the Groupfinancial statementsGeneral principlesThe Group’s accounting and consolidation principlescomply with Swiss standards for the preparation offinancial statements by banks.Consolidation scopeCompanies in the banking and financial sector that makematerial contributions to the Group financial statementsare all included in the scope of consolidation. Thesesubsidiaries are fully consolidated when Crédit Agricole(Suisse) SA holds, directly or indirectly, the majority of thevoting rights or share capital. Holdings of 20% to 50% inthe banking and financial sector are accounted for usingthe equity method (proportional share of net assets andresults).Companies of minor importance or those held purely forlater sale are stated in the balance sheet at their acquisitioncost less appropriate depreciation. Companies inliquidation are excluded from the consolidation scopeafter a period of 12 months following the final call todebtors.The list of fully consolidated holdings, holdings accountedfor using the equity method, non-consolidated holdingsand changes in the consolidation scope, are provided innote 3.3.Changes in the scope of consolidationIn the year to 31 December 2005, the scope of consolidationchanged as follows :First-time consolidation following the merger by absorptionof the Crédit Lyonnais (Suisse) SA Group :Year end date of the consolidated financialstatementsThe consolidation period corresponds to the calendaryear. The year end of all the companies included withinthe consolidation scope is 31 December.Consolidation methodCompanies in the banking and financial sector in whichthe Group directly or indirectly holds the majority of thevoting rights are consolidated according to the purchasemethod. The acquisition cost of the holding is offset bythe amount of the shareholders’ equity at the time theGroup took control.Holdings of 20% to 50% in the banking and financialsectors are accounted for using the equity method.They are stated in the balance sheet at the proportionalvalue of their net assets, including earnings.Depending on its nature, negative goodwill is attributedeither to earnings reserves or to provisions. Positivegoodwill is carried in the balance sheet and amortisedover its economic life.For holdings acquired prior to the end of December1999, the acquisition date of 1 January 2000 is applied(date of the Group’s creation).Translation for consolidation purposes of individualcompany accounts expressed in a foreign currencyThe balance sheets of companies domiciled outsideSwitzerland and drawn up in foreign currency are translatedinto Swiss francs at the year-end exchange rate. Theincome statements of these companies are translated atthe average rate for the year. The currency gains andlosses arising on this translation are recognised directlyin Group shareholders’ equity.• Crédit Agricole Suisse (Bahamas) Ltd.Deconsolidation of companies with no material influenceon the objectives covered by the Group’s financialstatements :• SFAP SA• S.I. La Coasta SA• Indosuez Trust Company Ltd.
2005 Annual Report / Crédit Agricole (Suisse) SA – 292.2 Accounting principlesGeneral principlesAssets, liabilities and off-balance sheet items reportedunder the same heading are always valued individually.The accounting and valuation principles comply withthe requirements of the Swiss Code of Obligations,the Swiss Federal Banking Act and the correspondingImplementing Ordinance, as well as the Swiss FederalBanking Commission’s directives governing the preparationof financial statements.Recording of transactions and presentationin the balance sheetTransactions are recorded in the books on their executiondate and are valued thereafter according to the principlesset out below. Until their settlement date, executedtransactions are presented as off-balance sheet transactions,except for spot forex and money markettransactions, which are directly recognised in thebalance sheet.Translation of foreign currency itemsThe group uses a multi-currency accounting system andbalance sheet items denominated in foreign currency aretranslated at the closing exchange rate.Interest on fixed-term transactions and commissions onfiduciary operations in foreign currency are recorded inthe income statement on a daily basis, at the exchangerate prevailing on that day. All other income and expensesare recorded on the day they occur, using the rateprevailing at the time of the transaction.The exchange rates against the Swiss franc used fortranslating foreign currency items are as follows :Currency2005Closing rateAverage ratefor the year2004Closing rateAverage ratefor the yearEUR 1.554 1.548USD 1.315 1.249JPY 0.011190 0.0113101.543 1.5441.132 1.23670.010961 0.011497Consolidated Financial Statements
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2005 Annual Report / CrÃ©dit Agricole (Suisse) SA

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