Notes to the consolidated income statement and the balance sheet

Compare to 2006
8.12 Deferred taxes
Page 1 | 2 | 3 | 4 | 5 | 6
 

The following deferred tax assets and liabilities are recognised by Vedior, and the movements thereon, during the current and prior reporting periods.


Deferred tax on accruals and provisions Retirement benefit obligations Share based payments Tax losses Intangible assets Other Total
Balance at 1 January 2006 34 3 3 16 -12 4 48
Credit (charge) to profit
or loss for the year 		-6

5 -2 -3
Recognised in equity

-2


-2
Exchange differences -2


1
-1
Transfer to current -7




-7
Balance at 1 January 2007 19 3 1 21 -13 4 35
Credit (charge) to profit
or loss for the year 		19

-4 -3
12
Exchange differences


-1 1

Transfer to current 3




3
Balance at 31 December 2007 41 3 1 16 -15 4 50

The following is the analysis of the deferred tax balances for balance sheet purposes:


2007 2006
Deferred tax assets 66 57
Deferred tax liabilities -16 -22

50 35

The total loss carry forwards can be specified as follows:


2007 2006
Total loss carry forwards 192 212
Unrecognised loss carry forwards -132 -139
Loss carry forwards recognised 60 73
Relating deferred tax asset 16 21

At 31 December 2007, the Company had unrecognised operating loss carry forwards of €132 million (2006: €139 million) which are available to offset future tax liabilities. The majority of these losses will expire between 2011 and 2015. Taking into consideration the uncertainty of the timing and the amount of future profits no deferred tax assets have been taken into account related to these operating losses.



8.13 Loans and receivables

Loans and receivables consist almost entirely of compulsory interest-free loans to French government departments (with a maturity of 15-20 years) to finance social housing projects. The amounts of the loans granted each year are dependent on the wage levels of the previous year. The fair value is calculated based on discounted expected future principal and interest cash flows using market prices.

31 December 2007

31 December 2006


 Fair value Carrying amount Fair value Carrying amount
Loans and receivables 48 48 49 46


8.14 Trade and other receivables


2007 2006
Trade receivables 1,712 1,578
Prepayments and accrued income 42 39
Other receivables 65 61

1,819 1,678

Of the trade receivables an amount of €1,309 million is within due date (2006: €1,209 million). Trade receivables are net of impairment losses amounting to €34 million (2006: €32 million).

Provision doubtful debts 2007 2006
Balance 1 January 32 30
Charge to profit and loss 11 9
Write off during the year -9 -7
Balance 31 December 34 32

Trade receivables are provided for based on management estimates for irrecoverable amounts based on historical experience. Before accepting new customers, each company has strict acceptance criteria which vary throughout the Group. There are no customers who individually represent a material amount of the total balance of trade receivables.

The average credit period for sales depends on contractual arrangements and local practices. The ‘Days Sales Outstanding’ or ‘DSO’ provides information on how many days it takes the company to collect its sales. The weighted average DSO of the Group at 31 December 2007 is 63 (2006: 63).

Ageing of trade receivables is as follows:

Months past due date 2007

2006

Past due Past due and impaired Past due Past due and impaired
0 < 2 331 3 308 3
2 < 6 74 7 59 8
6 < 12 14 7 14 6
> 12 18 17 20 15

437 34 401 32


8.15 Equity

Issued Capital
The Annual General Meeting held on 29 April 2005 approved the redemption of the preference B shares effective 1 July 2007. The redemption price was €100 per share. The authorised ordinary capital was increased in 2007 following the redemption of the preference B shares.

in thousands Ordinary shares at €0.05 Preference shares B at €100
2007 2006 2007 2006
Authorised at 31 December 400,000 328,000 - 36
Issued and fully paid



At 1 January 171,283 168,893 27 27
Redemption

-27
Exercise of share options 2,685 2,307

Issued under USA stock purchase plan 103 83

At 31 December 174,071 171,283 - 27

Dividend
After the balance sheet date the dividends relating to 2007 were proposed by the Board of Management. Please refer to this page for the dividend proposal 2007. The dividends have not been provided for and there are no income tax consequences.

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