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Financial Statements and Corporate Governance

The goodwill acquisition costs end of 2007 amount to €5,676 million (2006: €5,676 million) and the cumulative amortisation and impairments to €1,322 million (2006: €1,322 million).

The movements in financial fixed assets are detailed as follows:

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(in €m)

Subsidiaries

Participations

Loans

Total

 

 

 

 

 

Balance at 31st December 2006

10,057

76

2,165

12,298

Acquisitions/additions

 

 

255

255

Reductions/redemptions

(83)

 

(1,244)

(1,327)

SOP/ESOP

47

 

 

47

Net income from investments

(387)

7

 

(380)

Actuarial gains/losses IAS 19

403

 

 

403

Dividends received

(129)

(4)

 

(133)

Translation differences/other changes

125

15

 

140

Balance at 31st December 2007

10,033

94

1,176

11,303

The investments in subsidiaries are included in the balance sheet based on their net asset value in accordance with the aforementioned accounting principles of the consolidated financial statements. The participations include available-for-sale securities and investments accounted for using the equity method.

The translation differences/other changes reflect mainly the impact in the other comprehensive income related to the application of IAS 39.

Significant subsidiaries, associates and joint ventures are listed in the appendix “Information on principal investments” to the consolidated financial statements.

Loans provided to affiliated companies amount to €1,167 million (2006: €2,165 million). In average, the interest rate of the loans is 5,3%. An amount of €505 million has a maturity between five and ten years and an amount of €325 million matures after ten years. The item redemptions mainly reflects the redemption of a loan provided to Paradigm Secure Communications.