Tiscali 2003 Annual Report Download - page 60

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6262
• EUnet EDV und Internet Dienstleistungs AG, which incorporated Tiscali Österreich AG at the end of the year and took on
its name;
• the business division of Cable & Wireless in France, acquired by Tiscali Telecom S.A., a subsidiary of Liberty Surf;
• a branch of business of npower, acquired by Tiscali UK Ltd.
Tiscali Armement Sarl, a Company that managed a yacht used for promotions, was sold in December 2003 and is therefore not
included in the basis of consolidation.
Excluded from the consolidated accounts are all subsidiaries whose accounting statements would have no material impact on the
values shown, subsidiaries held solely with a view to their future disposal, and all non-operating subsidiaries. Stakes in non-con-
solidated subsidiaries that constitute non-current assets and stakes held in affiliated companies of a significant size are valued at
equity. Affiliated companies are those where Tiscali S.p.A.—either directly or indirectly—controls one fifth of the votes exercisa-
ble at ordinary shareholders’ meetings or one tenth of the votes if the Company is listed on the stock market.
Stakes in companies valued at equity are listed in these notes. Stakes in non-consolidated subsidiaries that constitute non-cur-
rent assets and stakes in affiliated companies that have no material impact on Group results are valued at cost, and are also listed
in these notes.
3) Accounting reference date
The consolidated accounts were prepared using the draft accounting statements approved by the boards of directors of Group com-
panies, or if these were not available, they were based on the accounting data provided and approved by the management of each
of the companies in accordance with the Group’s consolidation procedures.
4) Consolidation principles
The accounting statements used for consolidation have been prepared in accordance with the accounting principles and valuation
criteria of the parent Company, which comply with the rules set out in art. 2423 and subsequent articles of the Italian civil code,
and the accounting principles issued by the Italian association of chartered accountants.
The accounts of the companies included in the basis of consolidation are reported using the global integration method. The fol-
lowing adjustments were made for consolidation purposes:
a) the book value of stakes held in consolidated companies is eliminated in respect of the corresponding proportion of sharehol-
ders’ equity;
b) any negative differences that are not the result of adverse forecasts are booked under the consolidation reserve shown under
consolidated shareholders equity; as for any positive differences, the portion not attributable to subsidiaries is booked under assets
as a consolidation difference and treated as goodwill;
c) profits and losses arising from transactions carried out between Group companies and still listed on the balance sheet are eli-
minated, as are any credits, debits, costs, revenues and any transactions conducted between consolidated companies;
d) any write-downs or provisions made solely for tax purposes are eliminated;
e) minority interests and net profit attributable to minorities are listed separately under the appropriate items on the consolidated
balance sheet and profit and loss account.