AFD // 2021 Universal Registration Document
7
AFD’S ANNUAL PARENT COMPANY FINANCIAL STATEMENTS
Accounting principles and assessment methods
7.2.7 Grants The “Grants” item records the subsidies on loans for global budget support and investment subsidies on mixed loans, which are paid by the State at the start of the loan and which enable the granting of concessional loans by lowering the average cost of the funding allocated in each of the loan categories concerned. These grants and investment subsidies are amortised over the life of each of the loans they help to finance.
7.2.8 Fixed assets Fixed assets appearing on AFD’s balance sheet include property, plant and equipment and intangible assets used for operations. Intangible assets are mainly custom or purchased software. Fixed assets are recorded at their acquisition cost (cost price net of recoverable VAT) plus directly related expenses. If a fixed asset consists of a number of items that may be regularly replaced and have different useful lives, each item is booked separately according to its own depreciation table. This item-by-item approach has been used for head office.
Depreciation and amortisation periods have been estimated on the basis of each item’s useful life:
Title Land
Depreciation period Non-depreciable
1. 2. 3. 4. 5.
Structural systems Building envelope
40 ɸ years 20 ɸ years 15 ɸ years 10 ɸ years
Technical building services, fixtures and fittings
Sundry fittings
Other property, plant and equipment are depreciated using the straight-line method: P 15 ɸ years for office buildings in the French Overseas Departments and Collectivities; P 15 ɸ years for residential buildings; P five or ten years for fixtures, fittings and furnishings; P two to five years for equipment and vehicles. With regard to intangible assets, software is amortised according to its type: four years to eight years for management software and two years for office automation tools. Impairment testing is conducted on depreciable/amortisable assets when signs of loss of value are identified at the closing date. If there is a loss of value, an impairment charge is recorded under “Provisions for the depreciation of property, plant and equipment and the amortisation of intangible assets”, which may be reversed if there is a change in the conditions that led to it being recognised. This impairment reduces the depreciable/ amortisable amount of the asset and thus also affects its future depreciation/amortisation schedule. Capital gains or losses from the sale of assets used in operations are recorded under “Net gains or losses on fixed assets”.
7.2.9 Forward fi nancial instruments Off-balance sheet assets for financial instruments result entirely from outright transactions – interest-rate swaps and cross currency swaps – made over-the-counter. These transactions are recorded in the non-publishable off-balance sheet and discussed in Notes 33 and 34. These instruments aremanaged primarily as part of transactions for micro-hedging debt and loans. In accordance with ANC Regulation 2014-07 (1) , the par value of these contracts is recorded off balance sheet, while symmetry in relation to the hedged item results in income or expenses recorded as interest and related income or expenses for hedged items. Such income and expenses are not offset.
(1) Book II, Title 5, of ANC Regulation 2014-07 concerning forward financial instruments, which repeals and replaces CRBF Regulation 90-15 as amended by CRBF 92-04.
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2021 UNIVERSAL REGISTRATION DOCUMENT
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