6 - Vicat

information on the assets and liabilities,financial position and income statements of the issuer20Financial20.3. financial statements at december 31, 201020.3.3. Notes to Vicat sA financial statements 2010ACCOUNTING POLICIESThe accompanying financial statements have beenprepared in accordance with the laws and regulationsapplicable in France.Significant accounting policies used in preparationof the accompanying financial statements are asfollows:Intangible assets are recorded at historical cost afterdeduction of amortization. Goodwill, fully amortized,corresponds to business assets received prior to the1986 fiscal year. Greenhouse gas emission quotasare entered in accordance with the arrangementsexplained in note A1.Research and development costs are entered asexpenses.Plant, property and equipment are recorded atacquisition or production cost. Property, plant andequipment acquired before December 31, 1976 havebeen restated.Amortization is calculated on a straight-line basisover the useful life of assets. Amortization calculatedon a tax rate method is reported in the balance sheetunder “regulated provisions”.Mineral reserves are amortized based on thetonnages extracted during th year, compared withthe estimated total reserves.Investments are recorded at acquisition cost, subjectto the deduction of any depreciation considerednecessary, taking into account the percentageholding, profitability prospects and share prices ifsignificant or market prices. Investments acquiredbefore December 31, 1976 have been restated.Inventories are valued using the method of weightedaverage unit cost.The gross value of goods and supplies includes boththe purchase price and all related costs.Receivables and payables are recorded at nominalvalue.Depreciations are made to recognize losses ondoubtful receivables and inventories that may ariseat year-end.Receivables and payables denominated in foreigncurrencies are recorded using the exchange ratesprevailing at the date of the transaction. At yearend,these receivables and payables are valued in thebalance sheet at exchange rates in effect at year-end.Issue expenses for borrowings are spread over theterm of the borrowings.Differences arising from revaluation of foreigncurrency receivables and payables are reported inthe balance sheet under “Translation differentials”.Additional provisions are made for unrealizedcurrency losses that do not offset.Short-term financial investments are valued at costor at market value if lower.SIGNIFICANT EVENTSOF THE PERIODDuring the year, the company participated in theincrease in capital of its Parficim subsidiary for anamount of € 480 million.In December 2010 and January 2011, the companyissued a total of US $ 450 million and € 60 million ofbond debt to private American investors.SALES ANALYSISNet sales by geographical area and activity breakdown as follows :(In thousandsof euros)FranceOthercountries TOTALCement 374,374 33,650 408,024Paper 23,393 12,584 35,977TOTAL 397,767 46,234 444,001Manufactured goods are recorded at productioncost and include consumables, direct and indirectproduction costs and amortizations of productionequipment.174 VICAT 2010 registration document