FRR 2016 ANNUAL REPORT56
Tangible assets are depreciated on a straight- line basis over three years.
Intangible assets, linked mainly to the right of use of the SPIRRIS software and related mainte- nance, are amortised on a straight-line basis over five years.
The extraordinary, flat-rate, full-discharge contri- bution mentioned in Article 19 of law no. 2004803 of 9 August 2004 and paid to the CNIEG by the FRR in accordance with a decision of the Haut Conseil Interministériel de la comptabilité des organismes de sécurité sociale dated 20 April 2005, is recog- nised in the FRR s accounts as a debt.
In accordance with amendment no. 1 of 20 March 2009 to the agreement of 12 July 2005, entered into by the FRR and the CNAVTS, the FRR hence- forth shall determine the share attributable to the balance on an annual basis.
The fees paid to management companies are based on a fee scale that assigns a number of basis points per tranche of assets under management.
Some mandates receive variable performance fees in the case of outperformance, defined as the positive mathematical difference between the performance of the portfolio and that of its benchmark. Depending on the mandate, these fees are paid annually and/or at the end of the investment mandate provided that the outper- formance is confirmed over the relevant periods and subject to the contractually defined limits.
PRESENTATION OF THE FINANCIAL STATEMENTS For ease of reading, the financial statements have been organised in a number of sections:
The various items are presented as net values, taking into account the depreciations applied for fixed assets and valuation differences for finan- cial assets and liabilities.
Receivables and Payables on financial instru- ments comprise transactions in transferable securities by investment companies for which settlement is pending (matured coupons, pur- chases and sales awaiting settlement).
Receivables and Payables on forex transac- tions comprise current foreign exchange trans- actions, whether spot or forward.
Receivables and Payables on forward financial instruments comprise current transactions
related to futures (margins payable or receivable, security deposits), option premiums and swaps (payable or receivable flows).
Financial instruments comprise four catego- ries: equities and equity equivalents, bonds and bond equivalents, transferable debt securities, undertakings for collective investment, including venture capital funds and securitisation entities. They are shown in the balance sheet at their mar- ket value, taking into account coupons accrued on bonds, transferable debt securities and secu- ritisation entities.
Cash comprises all the FRR s cash accounts in euro and foreign currencies (valued at their price on the last day of the financial year), and interest accrued on these interest-bearing current and deposit accounts.
Equity capital comprises:
Allocations corresponding to the balance of employers contributions received by the FRR since its inception in 1999, less the sums allo- cated to the CADES.
Reserves representing the accumulated income generated by the Fund since its incep- tion, less the sums allocated to the CADES debt.
Valuation difference representing unrealised capital gains and losses recognised on all assets at the closing date.
Profit/(loss) for the financial year.
The Extraordinary contribution to CNIEG comprises:
the contribution paid to the FRR by the Caisse Nationale des Industries Electriques et Gazières (CNIEG) as part of Article 19 of law no. 2004803 of 9 August 2004, whose conditions of payment to the FRR by the CNIEG were laid down by order of the Minister for Social Soli- darity, Health and Family on 31 January 2005. This order set the sum that had been paid to the FRR by the CNIEG during the second quar- ter of 2005 at EUR 3,060,000,000;
interest paid to the FRR by the CNIEG in accordance with the order of 31 January 2005;
the share of the income for the financial year, net of charges, corresponding to the allocation of the share of the FRR s income to the balance paid by the CNIEG;
the share of unrealised capital gains or losses on the closing date.
The CADES debt is shown as debt - 1 year and debt + 1 year .