Valuation Principles

1. Basic principle
The accounting principles are determined in accordance with the Belgian Companies Code and the implementing decree of 30 January 2001. No departures from the accounting rules identified above are necessary for presentation of an accurate picture. The accounting rules have not been changed since last year. Income or expenses that should be assigned to any other financial year do not significantly affect the income statement. The figures for successive financial years are also comparable.

2. Special rules
2.1. Assets 
Intangible assets 

Intangible assets mainly consist of software licences purchased from third parties. These intangible assets are valued at their purchase value and depreciated on a linear basis over a period of five years (20%).
The total for intangible assets does not include any research and development costs. All research and development costs are immediately recognised as expenses.

Property, plant and equipment
Fixed tangible assets are measured at their acquisition costs, i.e. the acquisition price (including additional costs), cost price or contribution value.
Intercalary interest is not capitalised. The following percentages are used to calculate depreciation:

Depreciation takes place using the linear and/or reducing balance method.

Non-current financial assets
Shares are recognised at their purchase price, excluding additional costs that are taken to the income statement.
They are individually valued every year.
The valuation is based on the accounting net asset value of the shares or the presumed contractual value on sale, or in accordance with the criteria applied during the purchase of the shares if the holding has been acquired at a price which differs from their carrying amount.
Write-downs are applied if the estimated value, calculated as explained above, is lower than the carrying amount and if, in the view of the board of directors, the decrease in value is of a permanent nature, which is based on the position, profitability, probable recoverable value and prospects of the holding. Write-downs are reversed if the estimated value is higher than the carrying amount including the write-downs, and provided the board believes the difference will be permanent.

Amounts receivable within one year
These receivables are measured at nominal value. The Board of Directors will take a decision on any necessary write-downs. The related VAT will be retained on the assets and will only be recognised in the income statement if the recoverability seems to be impossible. A write down will always be recognised individually for each receivable, which also applies for a possible reversal of the write-down.

Cash and cash equivalents/cash investments
In general, these follow the same rules as those described under the heading ‘Financial assets’. However, the Board of Directors will recognise a write-down for any decrease in value, whether it is permanent or not.

Deferred charges and accrued income
Deferred charges include pro rata portions of expenses that have been incurred during the financial year, but which are charged to the following financial year. Accrued income, which is the pro-rata portion of income that will only be collected during the course of the following financial year, but which relates to the financial year that has ended.

2.2. Liabilities

Capital
The balance represents the actually contributed capital, and is measured at nominal value.

Debts
All amounts payable are entered at nominal value.
Amounts payable in foreign currency are converted at the official rate on the balance sheet date.

Provisions for risks and expenses
Each year, the Board of Directors undertakes a full examination of previously established provisions to hedge risks and expenses to which the company is exposed. The Board considers whether any provisions need to be formed or reversed, by analysing the accounts on an item-by-item basis and investigating all data that might reveal unhedged risks, such as disputes, etc. It determines the appropriate valuation methods for the main risks.
Provisions for risks and expenses are systematically formed or reversed, and such actions may not be made dependent on the result for the financial year.

Accrued charges and deferred income
These consist of the pro rata portion of expenses that will only be paid in a subsequent financial year, but which relate to the year that has ended. These expenses are stated at their nominal value. They also relate to deferred income, i.e. the pro rata portion of income collected during the financial year or the previous financial year, but which relates to a subsequent financial year. 

Foreign currency
Current assets and liabilities expressed in foreign currency are converted at the closing rate at the end of the financial year. Translation differences are summarised for each currency. If a negative translation difference is obtained, this is charged to the income statement. If a positive translation difference is obtained, it is recognised via accruals and deferrals.