VINCI - 2005 annual report

motorway network, the A19, the Rion-Antirion bridge in Greece, and
most of the parking facilities managed under concessions by VINCI
Park;
- the financial asset model: the asset under concession would be recognised
as an amortisable interest-bearing financial receivable whenever
the concession operator is remunerated directly by the concession
grantor and not by users. This model would apply to partnership
contracts of the “PPP” type (“PFI” in the UK), and to certain infrastructure
concessions for which the Group is remunerated by the
concession grantor under either an “availability scheme” (such as the
Newport bypass for which part of the remuneration depends on availability
of the asset), or a “shadow toll” (e.g. the “A Modell” in Germany),
under which the remuneration received by the operator is set on the
basis of the level of traffic but is paid by the concession grantor.
1.2.2 Amendment to IAS 19 – Employee Benefits
The amendment to IAS 19 Employee Benefits relating to the recognition
of actuarial gains and losses is applicable as from 1 January 2006, earlier
application being encouraged. VINCI has not yet made a decision on the
1.2.3 IFRIC 4 (Determining whether an Arrangement contains a Lease)
At this stage, VINCI has not decided to apply IFRIC 4 Determining whether
an Arrangement contains a Lease, applicable from 1 January 2006, early.
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VINCI 2005 ANNUAL REPORT
Application in 2006 of the IFRIC definitive interpretations relating to
concession contracts to be published could alter the accounting treatment
currently used in VINCI’s consolidated financial statements.
The methods currently used by VINCI are not in contradiction with the
IFRSs applicable at 31 December 2005 and have not been altered on
transition to IFRS. Concession contracts are recognised in the consolidated
financial statements as concession intangible fixed assets in accordance
with the methods described in paragraph 3 below.
option that it will adopt at that date, in particular as regards the possibility
of recognising all actuarial gains and losses directly in equity.
The consequences related to the application of IFRIC 4 and their financial
impact are being assessed.
1.2.4 Financial instruments: IAS 39 Amendments “The Fair Value Option”,
“Financial Guarantee Contracts” and “Cash Flow Hedge Accounting
of Forecast Intragroup Transactions”
VINCI has elected to apply the IAS 39 amendments in its financial statements
as from 1 January 2006 only. Application of these amendments in
1.2.5 IFRS 7 Financial Instruments: Disclosures
VINCI has not chosen to apply this Standard, applicable from 1 January
2007, early.
2. CONSOLIDATION METHODS
Consolidation scope
Companies of which the Group holds, directly or indirectly, the majority
of the voting rights are fully consolidated. Companies that are less
than 50% owned, but in which VINCI exercises a de facto control – i.e.
has the power to govern the financial and operating policies of an
entity so as to obtain benefits from its activities – are consolidated
using this same method. This relates in particular to CFE, of which
VINCI owns 45.38%.
Companies over which the Group exercises significant influence are
accounted for using the equity method.
Proportionate consolidation is used for jointly controlled entities,
the financial statements at 31 December 2005 would not have changed
the current accounting treatment materially.
regardless of the percentage of ownership. This relates in particular
to Consortium Stade de France, of which VINCI owns 66.67%. This
company is consolidated using the proportionate method by virtue
of an agreement that provides that any decision on financial and
operating policy requires the agreement of VINCI and of the other
shareholder, which owns 33.33% of the company’s shares.
The consolidated financial statements include the financial statements
of all companies with revenue of more than €2 million, and the
financial statements of subsidiaries whose revenue is below this figure
but whose impact on VINCI’s financial statements is material.