to download PDF - Integralis

During the year, as part of the Group’s restructuring programme, Old
Activis Ltd (Reading, UK) and Integralis Information Security Systems
GmbH (Vienna, Austria) were dissolved. Allasso France SA was
merged into Racer Finance SA and renamed Allasso France SAS
and Abax Partners SAS (Paris, France) was merged into Integralis
EURL (Paris, France).
1.4 Principles of consolidation
The consolidated financial statements are based on financial
statements as at 31 December 2002 and 2001 for the incorporated
companies prepared according to uniform principles of accounting
and valuation, audited or reviewed by external auditors.
Articon-Integralis Ltd., Reading, and its subsidiaries were included in
the consolidated financial statements from 1 January 2000 using the
Uniting-of-Interest method. In consolidating the investment in
subsidiaries, the differences between the amount recorded as share
capital issued plus additional cash consideration and the amount
recorded for the share capital acquired were adjusted against equity.
For the other incorporated subsidiaries, the consolidation was
carried out using acquisition accounting. In line with IAS 22, assets
were accounted for using valuations at the time of the acquisitions.
The difference between the aggregate purchase price of the
subsidiary and the fair value of the net assets acquired is capitalised
as goodwill and amortised in accordance with IAS 22.
The effects of intercompany transactions between consolidated
companies are eliminated in the consolidated financial statements.
1.5 Foreign currency translation
The individual balance sheets of the consolidated companies show
monetary assets and liabilities in foreign currency in accordance with
IAS 21 at the rate valid on the balance sheet date. Currency
differences arising from the conversion of monetary items were
recognised as income or expense during the period. Goodwill of the
acquired companies was converted at the rate of exchange on the
effective date. The balance sheets of foreign subsidiaries were
translated at closing rates and the profit and loss accounts at
average rates for the period.
24
2. Accounting policies
2.1 Property, plant & equipment
Property, plant and equipment is recorded at acquisition cost less
depreciation, calculated on a straight-line basis. Exceptional
depreciation is charged where a decline in value other than temporary
is anticipated. Gains and losses resulting from disposals are
accounted for as other income or expense. Maintenance expenditure
is considered as expenditure for the period. The estimated useful life
ranges are principally between 1 and 10 years. Low value assets are
fully depreciated in the year which purchase took place.
2.2 Intangible assets
Intangible assets comprise software and associated licences and
capitalised development costs. Acquired intangible assets are
recorded at acquisition cost. Software and licences are subject to
straight-line depreciation over their expected useful lives of three to
four years. Exceptional depreciation is charged where a decline in
value other than temporary is anticipated.
Development costs capitalised in accordance with IAS 38 are
depreciated over a 3-year period.
2.3 Financial assets
Financial assets are valued at fair value. Where the financial assets
are not traded in an active market, fair value is deemed to be the
purchase cost less any provisions for impairment.
2.4 Goodwill
Given the long-term strategic significance of the investments,
goodwill is subject to straight-line amortisation over a 10-year period.
The amortisation of goodwill is included in the “depreciation and
amortisation” line item in the profit and loss account.
The carrying value of the Group’s assets is reviewed whenever there
is an indication that impairment may exist. If such an indication
exists, the asset’s recoverable amount is estimated. An impairment
loss is recognised whenever the carrying value of an asset or its
cash-generating unit exceeds its recoverable amount. Impairment
losses are separately recognised in the profit and loss account.