305
assets is depreciated/amortised on a straight-line basis over
the estimated useful lives of the assets concerned. The useful
economic life of the Company’s property, plant and equipment
and intangible assets is determined by management when
the asset is acquired. This is based on past experience for
similar assets, market conditions and expectations regarding
future events that could impact useful life, including changes
in technology. Therefore, actual economic life may differ
from estimated useful life. The Company periodically reviews
technological and sector changes to update residual useful
lives. This periodic update may lead to a variation in the
depreciation/amortisation period and therefore also in the
depreciation/amortisation charge for future years.
(d) Taxes
Current taxes are calculated on the basis of the taxable income
for the year, applying the tax rates effective at the end of the
reporting period.
Deferred tax assets are recognised to the extent that it is likely
that future taxable income will be available against which they
can be recovered.
(e) Employee benefit obligations
The present value of the pension funds reported in the
financial statements depends on an independent actuarial
calculation and on a number of different assumptions.
Any changes in assumptions and in the discount rate used
are duly reflected in the present value calculation and may
have a significant impact on the consolidated figures. The
assumptions used for the actuarial calculation are examined by
the Company annually.
Present value is calculated by discounting future cash flows at
an interest rate equal to that on high-quality corporate bonds
issued in the currency in which the liability will be settled and
which takes account of the duration of the related pension
plan.
Further information can be found in Note 11. Employee benefit
obligations and Note 15. Personnel costs.
(f) Incentive plan
The plan for 2011-2013, involves granting options to some
of the Group’s employees and co-investing part of their
annual bonuses. These benefits are granted subject to the
achievement of operating and financial performance objectives
and the continuation of a professional relationship for the
three-year period 2011-2013. The estimate of the plan’s
financial and economic impact has therefore been made on the
basis of the best possible estimates and information currently
available.
Further information can be found in Note 15. Personnel costs.
