Hm. The company I was working for these days gives a little overview every months about the hours of flight time, and this actually does include every single simulator hour. As well as many even experienced captains and flight instructors told me they would count every simulator hour as flight time, so do I.
Maybe it is because of the differences regarding JAR and not-JAR countries (in Germany JAR regulations were introduced not so long ago).
And by the way, no-one ever complained about it before. So when I try to be lucky with my applications in other countries around Germany, I would give my total flight hours including sim hours.