France Télécom

France Télécom SA Period End 31 December 2006

Goodwill impairment attributed to management reorganisation
French telecoms company France Télécom discloses €2.8 billion impairment of goodwill, representing 79.7% of a decline in operating profit, but does not explain the underlying changes in the market.

Gaps emerge in IFRS guidance on minority interests
In the absence of IFRS guidance, French telecoms company France Télécom treats a merger involving subsidiaries with minority interests as purchase of minorities with goodwill arising and part-disposal of the resulting company.