FTE » Topics » 1.3 Accounting treatment of waste electrical and electronic equipment

This excerpt taken from the FTE 6-K filed Nov 2, 2006.

1.3 Accounting treatment of waste electrical and electronic equipment

European Directive 2002/96/EC as amended by Directive 2003/108/EC distinguishes the waste of electrical and electronic equipments between the users (private households or professional) and between the responsibility of the market participants before and after August 13, 2005. In accordance with these Directives, the France Telecom Group has adopted the following principles:

 

    The cost of collection, treatment and recovery attached to the professional use and produced before August 13, 2005 should be borne by the users. The corresponding obligation is accounted for in accordance with IAS 37 and IFRIC 1. This obligation is valued using an estimated volume to be recycled and an average cost per tonne. The corresponding provision is discounted as it will be settled at a future date and with a tangible asset as a counterpart.

 

    The collection, treatment and recovery costs of waste from private households produced before August 13, 2005 are financed by the producers present on the concerned market at the time of the waste collection. IFRIC 6 “Liabilities arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment”, which applies to historical waste produced before August 13, 2005, specifies that participation in the market during the measurement period is the obligating event. The market shares during the measurement periods will be, in accordance with the ministerial decree issued as of March 13, 2006, communicated on an half-year basis to the producers by the environmental agency for the periods beginning as of January 2007. As the information required is unknown, the Group is not able to measure the liability.

 

    The collection, treatment and recovery costs of waste from private households and professional produced after August 13, 2005 are financed by the producers. The Group will therefore apply the same accounting treatment set out in IFRIC 6. As the information required is unknown, the Group is not able to measure the liability.

 

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Table of Contents
This excerpt taken from the FTE 6-K filed Sep 14, 2006.

1.3 Accounting treatment of waste electrical and electronic equipment

European Directive 2002/96/EC as amended by Directive 2003/108/EC distinguishes the waste of electrical and electronic equipments between the users (private households or professional) and between the responsibility of the market participants before and after August 13, 2005. In accordance with these Directives, the France Telecom Group has adopted the following principles:

 

    The cost of collection , treatment and recovery attached to the professional use and produced before August 13, 2005 should be borne by the users. The corresponding obligation is accounted for in accordance with IAS 37 and IFRIC 1. This obligation is valued using an estimated volume to be recycled and an average cost per tonne. The corresponding provision is discounted as it will be settled at a future date and with a tangible asset as a counterpart.

 

    The collection, treatment and recovery costs of waste from private households produced before August 13, 2005 are financed by the producers present on the concerned market at the time of the waste collection. IFRIC 6 “Liabilities arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment”, which applies to historical waste produced before August 13, 2005, specifies that participation in the market during the measurement period is the obligating event. The market shares during the measurement periods will be, in accordance with the ministerial decree issued as of March 13, 2006, communicated on an half-year basis to the producers by the environmental agency for the periods beginning as of January 2007. As the information required is unknown, the Group is not able to measure the liability.

 

    The collection, treatment and recovery costs of waste from private households and professional produced after August 13, 2005 are financed by the producers. The Group will therefore apply the same accounting treatment set out in IFRIC 6. As the information required is unknown, the Group is not able to measure the liability.

 

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EXCERPTS ON THIS PAGE:

6-K
Nov 2, 2006
6-K
Sep 14, 2006
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