Annual report 2009 - Dexia.com

Notes to the annual fi nancial statementsManagement reportConsolidatedfinancial statementsAnnual financial statementsAdditional information3.2.4. 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 or lastingdepreciation. 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 MORETHAN ONE 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.3.2.6. 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 company comparedwith 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 ANDCHARGES (ITEM VII.)that 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 nominalvalue.3.4. Off-balance-sheet itemsOff-balance-sheet items are recorded for the nominal valueof the rights and commitments mentioned in the agreementor for their assessed value.4. Notes to the annualfinancial statementsDexia SA is a cross-border holding company which has twopermanent establishments in Paris and Luxembourg. Froman accounting point of view, the financial statements ofDexia SA 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 28,748 million as at31 December 2009, against EUR 28,513 million as at31 December 2008, or an increase of 1%.4.2. AssetsFIXED ASSETS4.2.1. FORMATION EXPENSESAll the expenses related to the capital increases are recordedin the assets as “Formation expenses” and are amortisedover a period of five years.The net book value of formation expenses amounts toEUR 6.3 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.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 losses220Dexia Annual report 2009