French Monetary and Financial Code
In forceAt the end of each financial year, the management company draws up an inventory of the various assets and liabilities existing at that date.
It also draws up the annual accounts and prepares a written management report.
It is required to apply the general chart of accounts adapted to the needs and resources of the said companies, taking into account the nature of their business, in accordance with the procedures laid down by a regulation of the French Accounting Standards Authority (Autorité des normes comptables).
The management report describes the company's situation during the past financial year, its foreseeable development and the significant events that occurred between the end of the financial year and the date on which it was drawn up.
In a statement attached to the management report, the management company mentions the book value, the realisable value and the reconstitution value of the non-trading property investment company (société civile de placement immobilier) or the forestry savings company (société d'épargne forestière) that they manage. The realisable value is equal to the sum of the market value of the buildings and the net value of the company's other assets. The reconstitution value of the company is equal to the realisable value plus the amount of costs incurred in reconstituting its assets.
These values are the subject of resolutions submitted to the General Meeting for approval. During the financial year, and if necessary, the Supervisory Board provided for in article L. 214-99 may authorise the modification of these values, on the basis of a reasoned report from the management company.
The documents mentioned in this article are made available to the statutory auditors under conditions determined by decree.
