Le Foyer S.A.

11 (l) Accounts payableAccounts payable are recorded on the liability side at their repaymentvalue.Where the sum required to settle the amount owed is higher thanthe sum received, the difference is recorded as a charge on the datethe debt is registered.Where the sum required to settle the amount owed is lower than thesum received, the difference is posted to the profit and loss accountand staggered over the term of the agreement.11 (m) Accrual accounts: liabilitiesThis heading corresponds to income received prior to the close ofaccounts but attributable to a future year.11 (n) Allocated investment income transferred to the life technicalaccountAllocated investment income transferred from the life insurancetechnical account to the non-technical account corresponds to theincome generated by assets forming part of the company’s unrestrictedassets.11 (o) Allocated investment income transferred to the Non-lifetechnical accountThis income corresponds to the portion of total net investment incomegenerated by assets constituting the Non-life technical reservetransferred from the non-technical account so as to render technicalprofit on the Non-life business more representative.11 (p) Administrative expenses62Administrative expenses consist mainly of expenses incurred incollecting premiums, administering portfolios, and managing profitsharing, no-claims bonuses and accepted and ceded reinsurance. Theyalso include personnel expenses and the depreciation of furniture,fittings and equipment, provided these are not related to other itemsand therefore accounted for under acquisition expenses, claims andinvestment charges.11 (q) Value adjustmentsValue adjustments are deducted directly from the value of the assetin question.