French Commercial code
In forceI.-When setting up the assets and liabilities affected, the sole trader mentions the nature, quality, quantity and value of the assets, rights, obligations or sureties that he assigns to his professional activity on a descriptive statement filed with the register where the declaration provided for in Article L. 526-7 to be annexed thereto.
In the absence of any property, right, obligation or security assigned pursuant to the second paragraph of Article L. 526-6, no descriptive statement is drawn up.
II.-The value entered is the market value or, in the absence of a market for the asset in question, the value in use.
Without prejudice to compliance with the allocation rules laid down in this section, the sole trader may present as a descriptive statement the balance sheet for his last financial year, provided that this has been closed for less than four months on the date of the declaration. In this case, all the items in the balance sheet make up the descriptive statement and the transactions that have taken place since the date of the last closed financial year are included in the following financial year of the sole trader with limited liability.
Where the sole trader with limited liability has not opted to be treated as a sole trader with limited liability or a farm with limited liability within the meaning of the article 1655 sexies du code général des impôts, the value of the items making up the earmarked assets corresponds to their net book value as shown in the accounts for the last financial year ended on the date the earmarked assets were created if commercial accounting is used, or to the original value of these items as shown in the fixed assets register for the last financial year ended, less depreciation already applied, if the entrepreneur is not required to keep such accounts.
