In the event of a discrepancy, the French language version will prevail. The consolidated financial statements include the audited accounts of the Company and of all significant wholly and majority-owned subsidiaries made up to December 31st 1999. Intercompany transactions are eliminated in consolidated accounts, which reflect external transactions only. Unless otherwise stated, assets and liabilities are included at acquisition cost and face value. The tangible assets are generally depreciated by the straight-line method according to French tax regulations.
Further depreciation is accounted in case of a permanent reduction in value.
Leases and hire purchase contracts Assets held under finance lease and hire purchase contracts are not included in the consolidated accounts, as the effect of recording these contracts would not be material compared to the value of assets directly held by the Company and its subsidiaries. Foreign currencies valuation Assets and liabilities denominated in foreign currencies are translated at the rate of exchange prevailing at balance sheet date, whereas incomes and expenses are translated at the average rate prevailing during the year. Exchange differences are taken to the profit and loss account. The Group has implemented cost evaluation procedures for all significant construction contracts, enabling to record revenues and profits according to the percentage of completion method for the work done at the end of the year. Provision for the total anticipated loss on any construction contract is recognised in the profit and loss account as soon as it is known.