Foreign currencies Assets and liabilities in foreign currencies on which there is exchange risk exposure are valued according to the exchange rates ruling on the balance sheet date. Resultant exchange differences are taken to the profit and loss account. Results on forward exchange transactions entered into to hedge exchange risks on purchases and sales in foreign currencies are included in the operating result. Other tangible fixed assets Other tangible fixed assets are valued at historical cost less depreciation. Depreciation is calculated on cost on a straight-line basis over the expected useful lives of the assets, taking into account the residual value or market value, if lower.
Additional depreciation is provided on a non-recurring basis if the economic value is lower.
Land and assets under construction are not depreciated. Lives range from ten to thirty years for buildings, four to eight years for machinery and installations and four years for other equipment. Participating interests are stated at the proportional share in the net asset value as derived from the latest available figures. These are stated at average historical cost. Provisions are formed to cover the price and obsolescence risks of these stocks.