LISI 2012 FINANCIAL REPORT
80
4
COMPANY FINANCIAL STATEMENTS
3
Notes to the company
accounts
LISI S.A. is a public limited company with a Board of Directors,
with capital of €21,572,988 representing 10,786,494 shares
with €2 face value. It is registered at the Belfort trade registry,
under no. 536 820 269. Its registered offices are based at Le
Millenium, 18 rue Albert Camus, Belfort.
The final annual balance at December 31, 2012 was
€436,515,863. The annual income statement showed a profit
of €17,144,076.
The financial year runs over 12 (twelve) months, from January
1, 2012 to December 31, 2012.
The notes and tables below form an integral part of the
company accounts.
3.1 Accounting rules and methods
The accounts for 2012 are drawn up in line with current French
accounting regulations. The accounting rules and methods
have been applied in line with the prudence principle and with
underlying assumptions which aim to provide an accurate
picture of the company:
- the continuity of operations;
- the comparability of accounting methods;
- the independence of financial years.
Items listed on the balance sheet are, depending on the item,
valued at historic cost, transfer value, or net asset value.
The accounting principles on which the company accounts for
2012 were drawn up are identical to those for 2011.
The preparation of financial statements requires LISI to
make estimates and speculative forecasts which are liable to
impact on both its assets and liabilities as well as those of its
subsidiaries and holdings.
The latter are exposed both to specific, industry-related risks
as well as risks relating to the wider international environment.
In LISI S.A.’s financial statements, the estimates and forecasts
involved in implementing accounting methods particularly
affect equity investments, as valuations (see note b, below) are
based on affiliates’ forecast data.
a)Tangible fixed assets
Tangible assets are valued at their historical cost (price of
purchase and related expenses), and depreciation is calculated
using the straight line or diminishing balance method, in
accordance with their expected useful life:
Economic depreciation Fiscal depreciation
Buildings
33.33 years straight line 20 years straight line
Transport
equipment
5 years straight line 3 years straight line
Office
equipment
5 years straight line 5 years straight line
Office
furniture
10 years straight line 10 years straight line
LISI S.A. does not calculate depreciation of individual elements:
fixed assets that would require such restatement are not of a
significant nature.
b) Financial fixed assets
Participating shares and other financial fixed assets are valued
at their purchase price, excluding the costs incurred in their
acquisition. If these values are higher than the value in use,
a provision for depreciation is recorded to account for the
discrepancy.
The value in use is calculated from each line of investment,
based on the profitability and performance outlook for the
companies concerned; on developments in the economic
sectors in which they operate; and on their positions within
these sectors.
The inventory value has been brought into line with the value
in use calculated for the impairment tests, which did not show
any loss in value.
c) Marketable securities
Marketable securities are valued at their purchase price,
excluding the costs incurred in their acquisition. They may be
depreciated in line with the average price or the year-end price.
d) Treasury stock
Treasury stock is held as marketable securities. These latter
are valued at their lowest acquisition price or market value
(average stock market price for December) for treasury stocks
purchased under price regulation or equity not allocated to
staff stock option or share allocation plans. For shares allocated
to plans, CNC notice no.2008-17 applies.
e) Free shares and options
Where an outflow of resources relating to share purchase
options and free share awards on the basis of performance
is probable, the amount of the future expense is provisioned
in proportion to the rights acquired since the allocation date.
Where relevant, provisions thus provided for take into account
