Tiscali 2003 Annual Report Download - page 103

105
Form and content of the annual accounts
1) Criteria used to prepare the accounts
These accounts have been prepared in accordance with art. 2423 and subsequent articles of the Italian civil code, and consist of
the balance sheet, the profit and loss account and the notes to the accounts, which conform to the standards set out in art. 2427
of the Italian civil code, and pursuant to art. 2423, constitute an integral part of this annual report and accounts. For ease of
comparison the accounts contain figures for the 2002 financial year, which have been prepared and presented in the same way
as 2003 data. Moreover, pursuant to legislative decree 127/1991, the consolidated accounts are presented together with those
of Tiscali S.p.A..
In order to provide a better overview of the Company’s operations and financial position, the following accounting statements are
supplied as supplementary information:
- Restated Balance Sheet;
- Restated Profit and Loss Account;
- Statement of Changes in Financial Position.
2) Accounting policies
a) General criteria
The criteria used in the preparation of the accounts conform to those stipulated by the aforementioned regulations. These crite-
ria have been integrated and interpreted in accordance with the accounting principles issued by Italy’s national association of
chartered accountants (Consiglio Nazionale dei Dottori Commercialisti e dei Ragionieri), and where necessary, the accounting prin-
ciples recommended by the International Accounting Standards Board. The same criteria are used as in previous years, particu-
larly with regard to valuations and continuity in applying the same principles. The valuation of balance sheet items was performed
based on the general principles of prudence and competence, on a going concern basis. For the purposes of accounting entries,
the economic substance of transactions prevails over their legal form. Investments are therefore booked at the time of payment.
Profits are included only if they are recorded within the period under review, while provision is made for risks and losses that may
come to light at a later date. Miscellaneous items included under single accounting entries have been valued separately.
Assets destined for long-term use have been listed under non-current assets.
With specific reference to the parent Company accounts, the same criteria are used as in previous years, particularly with regard
to valuations and continuity in applying the same principles. The valuation of balance sheet items was performed based on gene-
ral criteria of prudence and competence, on a going concern basis. In light of this, please note the following:
a1) Going concern basis
These accounts have been prepared on a going concern basis, since, as referred to in the Report on operations, the prospects for
the sector in which Tiscali operates and the Group’s competitive position mean that the Group’s target of achieving a better finan-
cial structure is well within its grasp, as the business plans, the disposal programme for non-core assets and the refinancing stra-
tegy indicate. In particular, attainment of the targets set out in the strategic plan represent, in this context, a key factor in the
development of Tiscali’s financial position and the stability of its business and finances, especially as regards the redemption of
outstanding bonds.
The Company’s position as a going concern is also supported by the substantial improvement in results achieved in 2003, and by the
expectations of further substantial and ongoing advances in 2004 and subsequent years, as set out in the business plan, which was
105
PARENT COMPANY: NOTES TO THE ANNUAL
ACCOUNTS