RATP applies a customized chart of accounts (CoA) as approved by the inter-ministerial order of March 21, 1985 and the French National Account- ing Board (Conseil National de la Comptabilité). The customized CoA was prepared in accordance with the rules, principles and framework governing the French national chart of accounts.
It includes additional line items refl ecting RATP’s reporting and disclo- sure requirements and specifi c characteristics in terms of legal form and fi nancing.
2.1 Balance Sheet
A detailed breakdown of non-current assets and the associated depreciation and amortization schedules are provided in tables 5.1 and 5.2.
.. OWNERSHIP REGIME GOVERNING ASSETS CAPITALIZED BY RATP
As of January 1, 2010, the ORTF law amended the ownership regime governing assets originally allocated to RATP or created by RATP by defi ning four asset categories:
• Infrastructure assets, which are managed and owned by RATP;
• Rolling stock and the related maintenance equipment (returnable assets), which are owned by the Île-de-France transport authority as of January 1, 2010. The Île-de-France transport authority will take possession of the assets once the operating rights expire. Implementation decree n° 2011-320 pro- vides for the purchase by the Île-de-France transport authority of these assets from RATP at their carrying amount net of grants, as reported in the fi nancial statements of RATP;
• RATP has full ownership of other items of property, plant and equipment required for operations (reversionary assets), other than those mentioned in the previous two paragraphs. Upon expiry of RATP’s operating rights, the Île-de-France transport authority has the right to exercise a reversion option on these assets;
• Real property and other assets that are not allocated to operations but are used by RATP for administrative, social or training purposes, which are fully owned by RATP.
Infrastructure
management Transport operations
Type of asset
Fully-owned assets Returnable assets Reversionary assets Fully-owned assetsNature of assets Infrastructure assets. Rolling stock and related
maintenance equipment. Assets required for operations:– bus stations, – equipment.
Assets allocated for administrative, social and training purposes. Ownership regime RATP owns these
assets. These assets belong to the Île-de-France transport authority as of January 1, 2010.
RATP maintains control. The Île-de-France transport authority will take possession of the assets when the agreement expires.
RATP retains legal ownership of these assets.
Stif holds a reversionary option subject to payment of compensation to RATP upon expiry of the agreement.
RATP owns these assets.
Remuneration arrangements during operating period
Article 14 of French decree n°2011- 320 sets forth the arrangements governing the compensation payable by Stif to RATP for the assets.
The remuneration principles and arrangements apply for the duration of the Stif-RATP agreement 2012-2015. Remuneration
arrangements upon expiry of operating rights
Not applicable. Article 14 of the French decree n°2011-320 provides for the repurchase of the assets at their carrying amount, net of grants.
The Stif-RATP agreement provides for the reversion of the assets at a value of zero for assets transferred to RATP as at January 1, 2010, or at their carrying amount, net of grants.
Not applicable.
.. INTANGIBLE ASSETS
• Research and development costs associated with assets that are clearly separable, technically feasible and likely to generate future economic benefi ts are capitalized if they meet the criteria set forth in the generally accepted accounting principles. They are amortized based on the useful life of the assets to which they relate. All other research and development costs are expensed;
• Information systems acquired or developed by the company are capitalized. They comprise the following components:
− Development and confi guration costs, which are amortized over fi ve to ten years, on the basis of the useful life of the systems; − Software and equipment acquired to place the system in service, which are amortized over a three-year period.
.. PROPERTY, PLANT AND EQUIPMENT
RATP’s fi xed assets and the reversionary concession assets provided by the Île-de-France transport authority are recorded at their historical (acquisition or production) cost, with the exception of those in operation as at December 31, 1976, which were revalued pursuant to Article 61 of the 1977 French Finance Act.
In accordance with component-based accounting, RATP’s fi xed assets have been broken down into components and the useful life of each component has been determined based on their replacement or renovation frequency. As at January 1, 2005 RATP adopted the amortized historical cost method. Certain assets are funded by investment grants.
Pursuant to CRC Regulation n°2004-06 of the French Accounting Regu- lations Committee (Comité de la Règlementation Comptable), the costs of dismantling railway rolling stock are provisioned to off set the amount capitalized for the asset components, which are depreciated over the use- ful lives of the trains.
Provisions for depreciation and amortization are calculated using the straight-line method based on the useful lives of the assets, as defi ned by RATP technicians. The useful lives of property, plant and equipment are reviewed annually if there are signifi cant changes.
Spare parts
Spare parts are measured and recognized at unit cost or at weighted aver- age cost per unit if managed by a computerized maintenance manage- ment system (CMMS).
Depreciation of spare parts is calculated on the basis of the depreciation schedule for the associated assets.
The main depreciation periods for RATP assets are provided in the table below:
Buildings
Useful lifeBuilding shell and brickwork 70 to 100 years Building fi xtures and fi ttings 6 to 30 years
Railway infrastructure
Useful lifeTunnels, stations and access ways 35 to 140 years Fittings for stations and access ways 15 to 40 years Tracks 10 to 50 years Conductors, traction power supply
for the metro system 5 to 50 years Catenary systems for the regional express
network (RER) and trams 15 to 50 years