French Tax Legislation Introduces Lack Of Comparability, an emerging issue under IFRS

This report reviews how a small sample of companies treat new taxes introduced by French legislation that replace the previous business tax.

Vallourec SA Period End 31 December 2009

Vallourec SA Annual Report 2009
Illiquid debt excluded from cash balances in correction of error
French engineering company Vallourec restates its cash flow statements, increasing opening cash by €121 million, or 31.5%, to €504 million, with effects on comparative exchange differences and cash flows from financing activities.

Impending IFRS leaves open initial valuation policy on minority interests
French engineering company Vallourec adopts early two impending IFRS Standards and states that it will decide on a case by case basis its policy on the valuation of minority interests whilst adopting a ‘partial goodwill’ method for a current year acquisition.

‘Defensive synergies’ identified as an element of goodwill
French engineering company Vallourec identifies ‘defensive and commercial synergies’ as the primary element of €91.4 million goodwill recognised in the year and tells us what it understands by ‘defensive synergy’.