2005 Annual Report / Crédit Agricole (Suisse) SA

2005 Annual Report / Crédit Agricole (Suisse) SA – 65Long-term financial investmentsFixed-income debt instruments to be held until maturityare valued according to the accrual method. The correspondingpremiums and discounts are apportionedover the residual period to maturity. These adjustmentsare recorded as additions to or deductions from bookvalue.Participating interests and other debt instruments arevalued at the lower of cost and market value. Adjustmentsto the value resulting from solvency conditionsare not treated separately. The net impact of changesin value is recognised as ordinary income or expenses.Gains and losses arising on interest alienated beforematurity or repaid early are spread over the remaining lifeof the transaction, i.e. until the initial expected maturity.Borrowing / lending of securities and repurchaseagreementsBorrowing and lending of securities and repurchaseagreements are recorded in the same way as sales andpurchases. These transactions may be recorded underthe following headings :• Money market instruments (assets and liabilities)• Securities and precious metals trading portfolios• Long-term financial investmentsTangible fixed assetsFixed assets are recognised at their acquisition cost anddepreciated on a straight-line basis over their estimateduseful life as follows :• vehicles and IT equipment3 years• fixtures and fittings5 years• mainframe IT system5 years• fitting-out of premises occupiedunder a long-term lease10 years• buildings used by the Bank(1.5% per annum) 66.5 yearsUpon subsequent revaluation, tangible fixed assets arecarried in the balance sheet at their acquisition cost, lesscumulative depreciation. The depreciation calculation isbased on the asset’s entire estimated useful life. Theaccounting value is reviewed regularly to ensure it is notimpaired.Accrued income and expensesCut-off is applied to interest income and expense, lendingcommissions considered as a component of interest,personnel and other operating expenses, safe-keepingfees, commissions on fiduciary transactions and assetmanagement commissions. Ordinary taxes still outstandingat the year end are included under this heading.These transactions are valued in the same way assecurities held directly by the Bank.ShareholdingsParticipating interests are recorded in the balance sheetat their acquisition cost. Provisions for diminution invalue are recorded under “valuation adjustments andprovisions”.Parent Company Financial Statements