Food Lion 2002 Annual Report Download - page 58

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56 |Delhaize Group |Annual Report 2002
The summarized annual accounts of Delhaize Group SA are presented
below. In accordance with company law, these annual accounts, the
Directors’ report and the Statutory Auditor’s report will be deposited at
the Banque Nationale de Belgique (National Bank of Belgium). These
documents can also be obtained upon request from : Delhaize Group SA,
rue Osseghemstraat 53, 1080 Brussels, Belgium. The Statutory Auditor
has expressed an unqualified opinion on these annual accounts.
Summary of Accounting Principles
Acomplete description of the accounting principles is included in the
notes to the consolidated accounts. The only differences relate to tangible
and financial fixed assets:
1) Tangible fixed assets are recorded at cost price or agreed capital con-
tribution value on the balance sheet. Assets held under capital leases
are stated at an amount equal to the fraction of deferred payments
provided for in the contract representing the reimbursement of the
capital value of the asset.
Depreciation rates are applied on a straight line basis at the rates
admissible for tax purposes:
Land: 0.00% /year
Buildings: 5.00% /year
Distribution centres: 3.00% /year
Sundry installations: 10.00% /year
Plant, equipment: 20.00% /year
Equipment for intensive use: 33.33% /year
Furniture: 20.00% /year
Motor vehicles: 25.00% /year
Ancillary construction expenses are written off during the year in
which they are incurred.
2) Financial fixed assets are valued at their cost price, less any amounts
previously written off.
At the end of the financial year, an individual valuation is made for
each security held in “Financial fixed assets”, so as to reflect as accu-
rately as possible the situation, profitability and prospects of the
company concerned.
The valuation method is chosen objectively, taking into account the
nature and characteristics of the security. It can be based on one or
other of the traditional bases used for such valuations, or on the
appropriately weighted average of several of them.
Generally, it is the net value of the asset, adjusted as required to
reflect underlying appreciation, which is used.
For foreign investments, the valuation is based on the exchange rates
applicable at the end of the financial year. The valuation method thus
adopted for a security is used consistently from one financial year to
the next, except, of course, in the event of a change in circumstances
rendering its continued use inadmissible.
Should this valuation show a long-term loss of value in relation to its
cost, the book value of the investment is reduced by an amount equal
to the long-term portion of the estimated impairment.
3) Summary of the net earnings per share and cash earnings per share of
Delhaize Group SA
2002 2001 2000
Net earnings per share 1.60 1.78 2.34
Cash earnings per share 1.61 1.79 2.35
Summary Company Accounts of Delhaize Group SA