Tiscali 2001 Annual Report Download - page 75

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67
method is deemed to provide a reasonable approximation of the time distribution of
asset purchases during the year.
Fixed assets which are the subject of financial leasing operations are shown among
technical fixed assets in the relevant classes and are systematically depreciated, in
the same way as owned fixed assets, based on their possibility of residual use. The
short-term and medium-term debts payable to the leasing organisation are posted as
contra-entries to the listing of said fixed assets; leasing payments are written off from
the expenses for rentals of assets owned by third parties and the interest charges for
the financial year are shown among financial charges. This method allows
representation of financial leasing operations according to the so-called "financial
method", as established in I.A.S. (International Accounting Principle) No. 17.
h) Long-term investments
–PARTICIPATIONS IN NON-CONSOLIDATED SUBSIDIARY COMPANIES AND
AFFILIATED COMPANIES
Non-current financial assets consisting of investments in non-consolidated
subsidiary Companies and affiliated Companies are valued according to the equity
method, i.e. for an amount equal to the corresponding fraction of the net equity
resulting from the last financial statement of the Companies themselves, after
subtraction of dividends and the application of the adjustments required by the
principles ruling consolidated financial statements.
Capital gains or losses deriving from the application of the net equity method are
shown in the profit and loss statement respectively in line items "Participation
revaluations" and "Participation write-downs".
Long-term investments consisting of receivables are calculated at their presumed
realisable value.
– PARTICIPATIONS IN OTHER COMPANIES AND LONG-TERM SECURITIES
The other participations and securities are shown at their cost value. In the event of
durable losses in value, deriving also from the market quotation of listed securities,
participations and securities are written down accordingly. In the year in which the
conditions leading to loss in value cease to exist, the value before write-down is
once again shown in the financial statements for the year.
i) Inventories
– RAW MATERIALS, WORK IN PROGRESS AND FINISHED PRODUCTS
Inventories are valued at the lower price resulting from the comparison of their
Consolidated Financial Statements