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Note 1. Accounting Rules and Methods
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements |
Statutory Financial Statements
Loans to subsidiaries and affiliates
Loans to subsidiaries and affiliates consist of medium- and long-
term loans to Group companies. They do not include current account
agreements with Group subsidiaries that are used for day-to-day
management of cash surpluses and shortfalls. A provision is, as
appropriate, recorded based on the risk of non-recovery.
Treasury shares
All treasury shares held by Vivendi that are either (i) in the process of
cancellation or (ii) acquired pursuant to the liquidity contract, are recorded
as Long-term Investments. Impairment losses are recorded on the latter
shares if their net book value is less than their stock market value, based
on the average share price during the month of Closing.
All remaining treasury shares held by Vivendi are recorded as Marketable
securities (see “Marketable securities” below).
1.4. Operating receivables
Operating receivables are recorded at nominal value. A provision is, as appropriate, recorded based on the risk of non-recovery.
1.5. Marketable securities
Treasury shares
Treasury shares purchased either for sale to Group employees upon
exercise of stock purchase options, or for grant to employees as
performance shares, are recorded as Marketable securities.
At year-end, the shares allocated to specific plans are not depreciated
but are subject to a provision (see “Provisions” below). For those shares
not allocated to specific plans, an impairment loss is recognized, as
appropriate, to reduce their net value down to their stock market value
based on the average share price during the month of closing.
Other marketable securities
All other marketable securities are recorded at acquisition cost. A
provision is recorded if the estimated trading value at the end of the
period is less than the acquisition cost. The value in use of securities in
foreign currencies is calculated using the exchange rates applicable on
the closing date.
1.6. Deferred charges relating to financial instruments
Issue costs in relation to bonds and lines of credit are amortized equally over the term of such instruments.
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