BOOK I: Commerce in general.

On the date of their entry into the company’s assets, goods acquired for valuable consideration are recorded at their acquisition cost, goods acquired free of charge at their market value and goods produced at their production cost. For fixed assets, the values used in the inventory must, where applicable, take account of depreciation schedules. If the value of an asset falls below its net book value, the latter is reduced…

Assets and liabilities must be valued separately. No offsetting may be made between asset and liability items in the balance sheet or between expense and income items in the income statement, except in exceptional cases provided for by a regulation of the Accounting Standards Authority. The opening balance sheet for a financial year must correspond to the closing balance sheet for the previous financial year.

Annual accounts must comply with the principle of prudence. In drawing them up, the trader, whether a natural or legal person, is presumed to be continuing his business. Even if there is no or insufficient profit, the necessary depreciation, amortisation and provisions must be made. Liabilities that arose during the financial year or a previous financial year must be taken into account, even if they are known between the date…

Only profits made at the end of a financial year may be entered in the annual accounts. The profit made on a transaction that has been partially completed and accepted by the other party may be entered, after inventory, when its completion is certain and it is possible, by means of forecast accounting documents, to assess with sufficient certainty the overall profit of the transaction.

Accounting documents are drawn up in euros and in the French language. Accounting documents and supporting documents are kept for ten years. Accounting documents relating to the recording of transactions and the inventory are drawn up and kept without blanks or alterations of any kind, in accordance with the conditions laid down by decree in the Conseil d’Etat.

Regularly kept accounting records may be admitted in court as evidence between traders of commercial transactions. If they have been irregularly kept, they may not be invoked by the author for his own benefit. Disclosure of accounting records may only be ordered in court in matters of succession, community, company division and in the event of receivership or liquidation.

All traders are required to open an account with a credit institution or a postal cheque office.