Le Foyer S.A.

11 (h) Accounts receivableAccounts receivable are recorded on the balance sheet at either theirnominal value or their expected realisation value, whichever is thelower. These values are adjusted should their full or partial recoverycome into doubt.These value adjustments are reversed if the reasons giving rise tothem cease to exist.11 (i) Deferred acquisition expensesAcquisition expenses for Non-life insurance policies are deferred usingan accounting method compatible with the method used to calculatethe provision for unearned premiums.At 31 December 2002, this item included expenses relating to a productmarketed in Germany which were staggered over two years. Thisexception no longer applies at 31 December 2003.11 (j) Technical provisions60The group has established technical reserves sufficient to enable it tohonour, as far as can reasonably be predicted, all commitments resultingfrom its insurance policies.Provision for unearned premiumsThe premiums written heading includes all premiums received or tobe received in respect of insurance polices concluded before the closeof the financial year.Premiums written that relate to one or more future years are deferredby means of a transfer to the provision for unearned premiums, calculatedseparately for each insurance policy pro rata to the remainingperiod of the policy.Provision for life insuranceThe provision for life insurance, which includes the actuarial value ofthe company’s commitments, net of future premiums (prospectivemethod), is calculated separately for each policy on the basis of themortality tables generally used in Luxembourg.For all products, the technical parameters used to calculate provisionsare the same as those used to establish tariffs.The calculations are made on the basis of book value.