Tiscali 2001 Annual Report Download - page 122

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114
The posting in the balance sheet of capital equipment leasing operations performed
in the financial year under consideration reflects the interpretation of current
legislation, i.e. the posting of leasing fees is made based on the reference period for
each payment.
Ordinary maintenance expenses are wholly debited to the profit and loss statement.
Maintenance expenses of an incremental nature are attributed to the asset to which
they refer and are depreciated based on the possibility of residual use of said asset.
Following is a summary of depreciation rates, which remain unchanged with respect
to 2000:
During the year in which an asset is purchased, the depreciation charges are
reduced by 50 percent. This accounting approach is adopted to provide a reasonable
approximation of the time distribution of asset purchases during the year.
g) Long-term investments
– INVESTMENTS IN SUBSIDIARY AND AFFILIATED COMPANIES
Investments in subsidiary and affiliated Companies, which are non-current financial
assets, are valued according to the cost method, taking into account that they are
recent purchases and set-ups. Cost is decreased when there is a durable loss of
value.
Non-current financial assets consisting of receivables are valued at their presumed
realisable value.
h) Inventories
– RAW MATERIALS, WORK IN PROGRESS AND FINISHED PRODUCTS
Inventories, mainly consisting of goods for re-sale, are valued at the lower
valuebetween their purchase cost, calculated by means of the weighted mean method,
Plants and machinery
- general plant and machinery 20%
- minor plant and machinery 12%
- specific plant and machinery 20%
- other plant and machinery 20%
Industrial and trade equipment
- network and other specific equipment 20%
- other industrial and trade equipment 20%
- other equipment 25%
Other goods
- office forniture 12%
- IT and electric office automation 20%
- motor vehicles 25%
- other goods 20%