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espect of which depreciation periods were selected on the basis
of internal studies by the Company and studies carried out by the
various recognised bodies in the real estate market:
Component
• Land
Depreciation period
• Structures: 50 to 75 years;
• Façades & waterproofi ng: 20 years;
• General technical plant (including lifts): 15 to 20 years;
• Fittings: 10 years;
• Asbestos, lead and energy diagnostics: 5 to 9 years;
• Furniture, offi ce & computer equipment: 3 to 10 years.
Hotel properties
For the B&B hotels, fi ve components have been identifi ed:
Component
• Land
Depreciation period
• Structures: 40 years;
• Façades & roofi ng: 20 years;
• Technical plant: 25 years;
• Interior fi ttings: 10 years.
The Buildings, fi xtures and fi ttings line item in the balance sheet
includes the following components: structures, façades & roofi ng,
technical plant, fi ttings and diagnostics.
Land was presented on a separate balance sheet line item.
In accordance with applicable legislation, the Company recognises
its non-current assets at historical cost, including incidental
acquisition-related costs plus any share of non-recoverable VAT.
The cost of an acquired property includes the purchase price and
all directly-attributable expenses (legal fees, transfer taxes and other
transaction costs).
Financial expenses relating to construction work and marketing fees
are capitalised and included in the cost of general and technical
plant.
Internal costs directly attributable to work on ongoing developments
were capitalised in the cost thereof.
Eviction compensation is also capitalised, where it gives rise to the
expectation that value will be created, notably through an increase
in rent.
Eviction compensation and marketing fees are amortised over a
period of twelve years.
Legal revaluation
As part of the transition to the SIIC regime on January 1, 2006,
ANF remeasured the assets for which the option was taken. This
remeasurement was based on appraisals by Jones Lang LaSalle
and gave rise to fair value adjustments of €409.6 million to ANF’s
real estate assets.
This adjustment was also recognised in shareholders’ equity. Exit
tax at 16.50%, amounting to €68.8 million, was charged on this
sum.
ANNUAL FINANCIAL STATEMENTS
Notes to the fi nancial statements
The remeasurement was allocated to the land and structures
components. The remeasured property is depreciated over
75 years.
Changes in fair value of property
The change in the fair value of property over a given period is
the difference between the fair value of properties owned by the
Company at the end of the period in question and the net carrying
amount.
If the appraised value excluding transfer taxes is signifi cantly under
the net carrying amount, temporary impairment is recognised where
the decrease is deemed long-term and material on the basis of a
case by case review.
No impairment was recognised at the closing date.
Equity holdings
As of December 31, 2009, ANF owned:
• 63.45% of the capital and voting rights in SGIL (Société de
Gestion Immobilière Lyonnaise), which owns real estate assets
consisting primarily of four properties at Cours Gambetta in
Lyons;
• 100% of ANF République Sarl, created in November 2008. ANF
République Sarl did not trade in fi scal year 2009;
• 45% of SCCV 1-3 rue d’Hozier, a company established to
develop the Fauchier residential programme.
As of December 31, 2009, ANF prepared its IFRS consolidated
fi nancial statements with SGIL proportionally consolidated and
SCCV 1-3 rue d’Hozier accounted for by the equity method.
Trade receivables
Trade receivables from tenants are mainly rents past due. However,
for some leases where rents and expenses are invoiced half-yearly
or quarterly in advance, income subsequent to December 31, 2009
has been recognised as prepaid income.
Front-end fees on commercial leases are recognised over the
minimum three-year term of the lease.
The Company reviews receivables individually at each closing date,
estimates any risk of non-recovery and funds a provision to cover
such risk.
Consolidating company
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Contents
ANF was 59.24% controlled by Eurazeo as of December 31, 2009.
Accordingly, on the same date, ANF was fully consolidated in the
consolidated fi nancial statements of the Eurazeo group.
ANF • 2009 ANNUAL REPORT
159
OTHER GENERAL GENERAL INFORMATION PRO FORMA FINANCIAL INFORMATION ANNUAL FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL FINANCIAL STATEMENTS INFORMATION ABOUT ANF DESCRIPTION OF THE BUSINESS