The consolidated balance sheet indicates that the Pages Jaunes Group has 56,129 thousand euros of share capital and 98,676 thousand euros of issue premium. The share capital is composed of 280,644,450 common stocks (ordinary stocks) each with a par value of 0.2 euros. As observed in the statement of stockholders' equity, the company carried out a capital increase of 75,534 euros in 2007 (through the creation of 377,670 new common shares) and 295 434 euros in 2006 (1,477,170 new common shares). The impressive evolution of the total equity, which became negative in 2006, is mainly due to the evolution of the dividends paid and consequently to the impact on the retained earnings. Indeed, in November 2006, exceptional dividend distribution was effected and concerned 2,519,7 million euros. This distribution is exceptional and differs from the traditional dividend distribution realized in May (cf. note 24.4): in 2006 284 million euros were distributed (i.e. 1.02 euros per share) and 303.1 million euros in 2007 (i.e. 1.08 euros per share). All these dividends (exceptional and normal) were declared and paid during the year as shown in the consolidated cash flow statement in which « Dividends paid » decrease the net cash from financing activities.
[...] The company also uses derivative financial instruments in order to manage the rate risk associated with the variable rate debt the Pages Jaunes Group arranged in 2006. These financial instruments are: - an interest Swap contract - a collar A particular note is associated to the treatment of these derivative financial instruments which are measured at fair value in the balance sheet and gains and losses arising from re-measurement at fair value of derivatives instruments are systematically recognized in the income statement (excepted in certain cases also evoked in the note) Investing decisions Investment in productive assets The accounting method used to record intangible assets and amortization is explained in the note 3.9 Other intangible assets. [...]
[...] The activity of Pages Jaunes is safe Is the company well managed? In order to determine it, let's have a look at its margins, main figures, evolutions and expected evolutions in comparison to its competitors. First, sales growth at Pages Jaunes is slightly stronger its peers average. Pages Jaunes has a stronger position in its market than most peers in Europe and the US as it is in a monopolistic stance in France in print and in online it records more visits than big search engines for local search. [...]
[...] In a second part we insist more on the control itself: here we discover that after having left the France Telecom's Group, Pages Jaunes kept France's Telecom internal auditing organisation. It's just in November 2006, that the group decided to create a new and independent department. Finally, in a third and last part we can find the note about the Risk Management: they built a Risks cartography in 2005 which reports all the risks of the firm and describes the role of the Risk Manager. [...]
[...] We can observe that Pages Jaunes Group uses the consolidation method only when the subsidiary is exclusively controlled directly or indirectly by the Group and do not use that method when it controls around 66% of the subsidiary. In that case, Pages Jaunes Group uses the proportional consolidation method which consists in reporting the financial statements of the subsidiary following a percentage which depends on the level of control of the subsidiaries. Goodwill: According to Pages Jaunes Group, “Goodwill represents the difference between the purchase costs of shares in consolidated companies, including transaction expenses, and the Group's equity in the value of the underlying net assets at the date of acquisition.” In accordance with IFRS Pages Jaunes Group chose not to amortize goodwill but to test it for impairment. [...]
[...] To determine the cost of inventory on hand, Pages Jaunes Group decided to use a periodic method but which is not related to the fluctuation of market prices. Bad debts recorded following the “Percent of credit sales method”. In fact, Pages Jaunes explains that “provisions for trade account risks in France remain at a very low level, with a net charges rate of compared to turnover for 2007”. The account Net trade account receivable is the account Trade account receivable net of the provisions for impairment. [...]
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