REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

20. FINANCIAL INFORMATION CONCERNING THE COMPANY’S ASSETS AND LIABILITIES,
FINANCIAL POSITION AND PROFITS AND LOSSES
20.1 CONSOLIDATED FINANCIAL STATEMENTS FOR 2007, 2006 AND 2005
NOTE 3: CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
The Group makes estimates and assumptions concerning the future. It continually evaluates these estimates and
assumptions which are based both on past experience and on other factors deemed reasonable to be used for
assessing the carrying amount of assets and liabilities. Actual amounts may differ significantly from these
estimations should different assumptions or conditions apply.
The main accounting estimates and judgments used by the Group relate to the following:
• Useful lives and impairment of assets.
• Assessment of doubtful receivables and calculation of the corresponding provisions.
• Impairment tests.
• Share-based payment and other employee benefits.
• Provisions for contingencies and charges.
NOTE 4: REVENUES
An analysis of revenues by business segment is provided in Note 16.
As substantially all of the Group’s operations are in France, presenting data by region would not be significant.
NOTE 5: PURCHASES USED IN PRODUCTION
Purchases in production include:
• Interconnect costs invoiced by other operators.
• Costs relating to unbundling operations.
• Acquisitions of goods and services for resale or for use in designing goods or services invoiced by the
Group.
NOTE 6: HUMAN RESOURCES DATA
Payroll costs
Payroll costs break down as follows:
(in € thousands) 2007 2006
• Wages and salaries ....................................................................... 34,360 28,708
• Payroll taxes ............................................................................. 13,119 10,877
Total ......................................................................................... 47,479 39,585
As explained in Note 1-4 “Presentation of the financial statements”, share-based payment expense is now
recorded on a separate line of the income statement whereas it was previously included in payroll costs. In order
to permit meaningful year-on-year comparisons, 2006 data have been adjusted to reflect this change.
Number of employees at year-end
Iliad Group employees can be analyzed as follows by category:
At Dec. 31,
2007
At Dec. 31,
2006
• Management ........................................................................ 171 177
• Other ............................................................................... 2,241 1,600
Total .................................................................................... 2,412 1,777
124 - Iliad – Registration Document 2007