Read the Registration Document - Guerbet

) Notes to the consolidated financial statementsFigures presented in these notes are in thousands of euros.I) Significant accounting policiesa) Basis of presentation and statement of complianceThe main accounting policies applied for the preparation of the consolidated financial statements aredescribed below. Except where otherwise indicated, these methods have been consistently applied for allperiods presented herein.In compliance with EC regulation 1606/2002 of 19 July 2002 on international accounting standards, since1 January 2005 the Guerbet Group consolidated financial statements have been prepared on the basis ofInternational Financial Reporting Standards (IFRS) as approved by the European Union and applicable onthe date of publication of these accounts. IFRS adopted by the European Union differ in certain respects tothose published by the IASB. Nevertheless, the Group has ensured that the financial information for theperiods presented herein would not be materially different if the IFRS published by the IASB had beenapplied.International financial standards include IFRS (International Financial Reporting Standards), IAS(International Accounting Standards) as well as SIC (Standing Interpretations Committee) and IFRIC(International Financial Reporting Interpretations Committee) interpretations.All texts adopted by the European Union can be consulted at the following website of the EuropeanCommission: http://ec.europa.eu/internal_market/accounting/ias/index_en.htmThe format for presenting the financial statements complies with recommendation 2009-R-03 of the FrenchAccounting Standards Authority (Autorité des Normes Comptables or CNC).Main options retained for the transition to IFRS:1) All office property in Villepinte was remeasured at fair value on 1 January 2004 on the basis of anestimate by an independent appraiser. The revaluation was for €8 million including €6.5 million allocated tobuildings and €1.5 million to land.2) In compliance with IAS 38 intangible assets with indefinite useful lives are not amortised. Theaccumulated amortisation previously applied in the French GAAP financial statements was maintained atthe value of 1 January 2004.3) Translation differences existing at 1 January 2004 were recorded under “Other reserves”.For other information relating to 2005, the reader is referred to the registration document filed with the AMF(No. D.06-0221) that can be consulted at its website.74