Annual report 2010 - Dexia.com

Notes to the annualfinancial statements1. Presentation of thefinancial statementsDexia SA presents its financial statements before appropriation.The loss for the 2010 financial year amounts to EUR 5,188.2million. The profit carried forward from the previous yearstands at EUR 1,121.3 million, making a total loss forappropriation of EUR 4,066.9 million.2. Financial statements andchart of accountsDexia SA, a financial firm, is a company governed by Belgianlaw whose financial instruments are authorised for trading ina regulated Belgian market, and it is therefore subject to theobligation to publish yearly financial statements as prescribedby the Belgian Company Code and its decree of applicationdated 30 January 2001.The accounting plan is presented in accordance with theaccounting plan prescribed in the Royal Decree of 12September 1983. The items provided for in the accountingplan that do not apply to Dexia have been excluded.The financial statements are presented in EUR.3. Accounting policies3.1. General policies3.1.1. LEGISLATIONAccounting policies are in conformity with the Royal Decree of30 January 2001, in application of the Belgian Company Code.If legislation allows options or authorises a waiver, theaccounting policies hereafter shall mention the option chosenof whether such a waiver has been applied.3.1.2. FOREIGN CURRENCY TRANSLATION INTO EURMonetary assets, liabilities, rights and commitmentsdenominated in foreign currencies are translated into EUR atthe last day average year-end exchange rate.Non-monetary items are translated into EUR at the exchangerate ruling in effect on the transaction date.Foreign currency income and expense are translated into EURat the exchange rate ruling in effect on the date on which theincome or expense is recognised in the statement of income.3.2. Assets3.2.1. FORMATION EXPENSES (ITEM I.)Formation expenses are recorded as an asset and amortisedon a straight-line basis at the rate of at least 20% per year.3.2.2. INTANGIBLE FIXED ASSETS (ITEM II.)License acquisitions, external costs linked to software definitionand to the development of the website of Dexia Group arerecorded as intangible fixed assets when the acquisition priceis at least equal to EUR 495.79 per item, or when delivery isbroken down into partial shipments representing less than EUR495.79 each but the total delivery is at least EUR 495.79.Intangible fixed assets recorded in the assets are depreciatedover a maximum of five years.Furthermore, the internal costs related to the development ofsoftware and the website are entirely charged in the financialyear in which they are exposed.3.2.3. TANGIBLE FIXED ASSETS (ITEM III.)If necessary, exceptional depreciations will be recorded to alignthe accounting value of fixed assets to their utilisation value forthe company to take into account their alteration or changesof economic or technological circumstances.Exceptional depreciations are reversed if they are no longerjustified.3.2.4. FINANCIAL ASSETS (ITEM IV.)Participating interests and shares are stated at acquisition costor contribution cost. Related transaction costs are recordeddirectly in the statement of income.Impairments are recorded in the case of capital losses orlasting depreciation. They are determined by reference to thefinancial position, profitability and prospects of the companyin which shares and/or equity interests are held.Participating interests and shares may also be revalued. In thisit is therefore required that their value, determined on thebasis of their utility to the company, presents a certain andlasting surplus in relation to their book value.Debts appearing under financial fixed assets are valuedaccording to the same principles as debts at more than oneyear and up to one year.3.2.5. AMOUNTS RECEIVABLE AFTER MORE THANONE YEAR AND WITHIN ONE YEAR (ITEMS V. AND VII.)Receivables are stated at their nominal value. Allowances arebooked to cover any risk of non-recovery.Management reportConsolidatedfinancial statementsAdditional information Annual financial statementsAnnual report 2010 Dexia243