Le Foyer S.A.

11 (a) Conversion of items denominated in foreign currenciesAssets and liabilities denominated in foreign currencies are convertedto euro (€) at the exchange rate in force on the date the accountsare closed.Transactions denominated in foreign currencies carried out in thecourse of the year are converted to euro (€) at the exchange rate inforce on the date of the transaction.11 (b) Intangible assetsIntangible assets are valued at the historical cost of acquisition orcurrent market price, and are amortised on a straight-line basis at arate of 20% or 33.3% per year.Start-up expenses are fully amortised in the year in which they arise.11 (c) Tangible assetsTangible assets are valued at the historical cost of acquisition. Thecost of acquisition is obtained by adding associated expenses to thepurchase price.Tangible assets with a limited useful life are depreciated on a straightlinebasis at the following rates:Category of tangible asset% rate- buildings and installations 2.0%- other tangible assets excludingIT equipment 10.0%- IT equipment 20.0% et 33.3%58Tangible assets with an unlimited useful life are not depreciated.11 (d) Participating interests not included in the scope ofconsolidationParticipating interests not included in the scope of consolidation arereported on the balance sheet at their cost of acquisition. The valueof these holdings is adjusted only if the Board of Directors believesthe participating interests have suffered a lasting diminution in value.The adjustments are reversed if the reasons giving rise to them ceaseto exist.