Annual report 2010 - Dexia.com

Notes to the annual financial statementsManagement reportConsolidatedfinancial statementsAdditional information Annual financial statements3.2.6. SHORT-TERM INVESTMENTS AND CASHASSETS (ITEMS VIII. AND IX.)Cash is stated at nominal value.Securities are stated at acquisition cost, while the accessorialcosts are recorded in the statement of income in the year inwhich they are incurred.At balance-sheet date, impairments are recorded on shortterminvestments and liquid assets if their realisation value islower than their book value.Additional impairments are recorded on these assets in orderto reflect either a change in their realisation or market value,or the risks inherent in the nature of the products concernedor the activities conducted.Nevertheless, own shares acquired with a view to cancellationare valuated at cost as they may only be destroyed further tothe agreement of the Shareholders’ Meeting.3.3. Liabilities3.3.1. REVALUATION SURPLUSES (ITEM III.)Shares and participating interests that are recorded as longterminvestments may be revaluated in the case of a certain,permanent increase in their fair value for the companycompared with their book value.Revaluation surpluses are maintained in this heading until therealisation of the assets concerned or their inclusion in thecapital.3.3.2. PROVISIONS FOR LIABILITIES AND CHARGES(ITEM VII.)At balance-sheet date, the Board of Directors, acting withprudence, sincerity and good faith, examines the provisionsto be built up in order to cover all possible risks or lossesthat might have occurred during the financial year or previousfinancial years.Provisions relating to previous financial years are regularlyreviewed and reversed if they no longer serve a purpose.3.3.3. DEBTS OF OVER ONE YEAR AND UP TOONE YEAR (ITEMS VIII. AND IX.)Debts are stated in the balance sheet for their nominal value.3.4. Off-balance-sheet itemsOff-balance-sheet items are recorded for the nominal value ofthe rights and commitments mentioned in the agreement orfor their assessed value.4. Notes to the annualfinancial statementsDexia SA is a cross-border holding company which has twopermanent establishments in Paris and Luxembourg. From anaccounting point of view, the financial statements of DexiaSA include the accounts of Brussels, the Dexia SA headoffice, and those of the permanent establishments in Parisand Luxembourg.4.1. The balance-sheet total (beforeincome appropriation)The balance-sheet total was EUR 23,397.9 million as at31 December 2010, against EUR 28,747.9 million as at31 December 2009, a decrease of 19%.4.2. AssetsFIXED ASSETS4.2.1. FORMATION EXPENSESAll the expenses related to the capital increases are recordedin the assets as “Formation expenses” and are amortised overa period of five years.The net book value of formation expenses amounts toEUR 4.9 million.Formation expenses include the fees directly associated withcapital increases and expenditure associated with the shareownership plans of previous years aimed at all members ofstaff of the Group in the different countries in which theDexia Group is active.4.2.2. INTANGIBLE FIXED ASSETSIntangible fixed assets totalled EUR 6.4 million and concernedthe acquisition and the development of software as wellas external costs related to the development of the Dexiawebsite. These intangible fixed assets are depreciated on astraight-line basis over a period of three years.4.2.3. TANGIBLE FIXED ASSETSTangible fixed assets which have a net book value ofEUR 1.6 million have a gross acquisition value ofEUR 8.5 million.Property, plant and equipment contribute a gross acquisitionvalue of EUR 3.3 million and are depreciated on a straight-linebasis over a period of ten years.Office and IT equipment represented a gross investment ofEUR 4.7 million, depreciated on a straight-line basis at a rateof 25%.Other tangible fixed assets involving the installation of theleased premises (gross acquisition value of EUR 0.5 million)depreciated on a straight-line basis over the period of thelease contracts.244 Dexia Annual report 2010