LensCrafters 2015 Annual Report Download - page 183

Notes to the separate financial statements as of December 31, 2015 Page 3 of 77
BASIS OF PREPARATION
In application of Italian Legislative Decree no. 38 of February 28, 2005 ("Exercise of options under Art. 5 of Regulation
(EC) no.1606/2002 regarding international accounting standards"), the Company has prepared its separate financial
statements as of December 31, 2015 in conformity with the International Financial Reporting Standards ("IFRS") issued
by the International Accounting Standards Board ("IASB") and endorsed by the European Union at the date of
approving the financial statements.
The term "IFRS" is also understood to refer to all the international accounting standards ("IAS") and all the
interpretations published by the International Financial Reporting Interpretations Committee ("IFRIC"), previously
known as the Standing Interpretations Committee ("SIC").
REPORTING STRUCTURE AND DISCLOSURES
The Company's annual financial statements comprise the Statement of Financial Position, the Statement of Income, the
Statement of Comprehensive Income, the Statement of Cash Flows, the Statement of Changes in Stockholders' Equity
and the accompanying Notes.
The financial statements are presented on a comparative basis with the prior year.
The currency used by the Company for presenting the financial statements is the Euro and all amounts are expressed in
whole Euros, unless otherwise stated.
The Company has adopted the following reporting structure for its financial statements:
• statement of financial position: assets and liabilities are classified according to current and non-current criteria;
• statement of income: costs are presented according to the nature of expense, in view of the type of business
conducted. It should be noted, however, that the Luxottica Group presents its consolidated statement of income
using a function of expense method since this is considered more in line with the way that internal financial reports
are prepared and with how the business is run;
• statement of cash flows: this has been prepared using the indirect method.
Cash and cash equivalents reported in the statement of cash flows reflect the corresponding balances presented in the
statement of financial position at the reporting date. Foreign currency cash flows have been translated at transaction
date exchange rates.
In accordance with Consob Resolution no. 15519 dated July 27, 2006 concerning financial reporting formats, the
financial statements contain separate presentation, as necessary, of any material related party balances and transactions.
Lastly, it should be noted that the Company has applied the provisions of:
• Consob communication no. 6064293 dated July 27, 2006 concerning the disclosure of non-recurring transactions,
atypical or unusual transactions and related party transactions;
• Bank of Italy/Consob/Isvap joint statement no. 2 dated February 6, 2009 concerning disclosures in financial reports
about business continuity, financial risks, asset impairment testing and uncertainties in using estimates;