Tiscali 1999 Annual Report Download - page 21

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o) STAFF SEVERANCE INDEMNITY RESERVE
The provision corresponds to all amounts due to employees under current laws.
p) LIABILITIES
Liabilities are reported at the actual amounts payable to extinguish the debt.
q) RISKS, COMMITMENTS, GUARANTEES
Commitments and guarantees are indicated in the memorandum accounts at their contractual value.
The guarantees issued are in the form of surety bonds issued in favor of third parties in execution of
contract terms.
Commitments refer to obligations resulting from stipulated agreements which have not been as yet
executed, and from leasing and operating lease charges to be posted in future financial years.
r) REVENUE RECOGNITION
Revenues from the sale of services are entered on the basis of traffic actually recorded as of the closure of
the financial year. Financial revenues are recorded on the basis of the matching principle.
s) RECORDING OF AMOUNTS IN FOREIGN CURRENCIES
Receivables and payables in extra-CEE foreign currencies are adjusted to the exchange rates valid at the
end of the financial year, by including a specifically designated exchange-rate Risk Fund in the balance
sheet. Profits and losses deriving from exchange rate fluctuations are listed as receivables or payables in
the profit and loss account.