Subsection 1: Accounting requirements applicable to all traders

The assets side of the balance sheet, the model for which is established by a regulation of the Autorité des normes comptables, shows the following items in succession: 1° Under fixed assets: intangible fixed assets, tangible fixed assets and financial fixed assets; 2° Under current assets: Inventories and work-in-progress, advances and deposits paid on orders, receivables, marketable securities and cash;

Participations are rights in the capital of other legal entities, whether or not evidenced by securities, which, by creating a lasting link with them, are intended to contribute to the business of the company holding them. Securities representing more than 10% of the capital are presumed to be equity holdings.

The amount of loan repayment premiums is entered on the assets side of the balance sheet under the corresponding heading. It is amortised systematically over the term of the loan in accordance with the terms and conditions set out in the notes to the financial statements. Under no circumstances may premiums relating to the portion of loans repaid be retained in the balance sheet.

Expenses incurred in connection with operations that condition the existence or development of the company but the amount of which cannot be related to specific production of goods and services may be entered on the assets side of the balance sheet under “Formation expenses”. Development costs may be entered on the assets side of the balance sheet under the corresponding item, provided that they relate to clearly individualised projects with…

A regulation issued by the French Accounting Standards Authority sets out the conditions for determining the useful life, limited or unlimited, of intangible assets. Formation expenses are amortised according to a plan and within a maximum period of five years. Development costs are amortised over the estimated useful life of the projects, which is justified in the notes to the financial statements. If their useful life cannot be reliably determined,…

The liabilities side of the balance sheet shows the following items in succession: shareholders’ equity, other shareholders’ equity, provisions, debts, accruals and deferred income and translation differences. Liabilities items distinguish among shareholders’ equity: capital, share premiums and similar premiums, revaluation differences, profit for the year, investment grants and regulated provisions, as well as reserves by isolating the legal reserve, statutory or contractual reserves and regulated reserves.

Shareholders’ equity corresponds to the algebraic sum of contributions, revaluation differences, profits other than those for which a decision has been made to distribute, losses, investment subsidies and regulated provisions.