Tiscali 2003 Annual Report Download - page 80

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8282
It also included EUR 84.4 million held by the French subsidiary Liberty Surf Group S.A., of which EUR 70 million is invested in
short-term money market instruments. The use of these resources for extraordinary operations (such as loans to the parent
Company and/or other Tiscali Group companies) requires approval from the board of directors of Liberty Surf Group, with reasons
given for their decision.
D) Accrued income and deferred charges
Accrued income and deferred charges break down as follows.
Accrued income
Other accrued income includes:
• accrued income relating to revenues from ADSL contracts totalling EUR 3.3 million;
• revenues from the sale of multi-year indefeasible rights of use (IRUs) contracts for transmission capacity, worth EUR 6.5
million;
• revenues from business services pertaining to the subsidiary Tiscali UK (EUR 13.4 million);
• other revenues from services, generated mainly in Italy and the Netherlands (EUR 9.8 million).
Deferred charges
The item “deferred charges” consists chiefly of "pre-paid expenses", and breaks down as follows:
• deferred charges not relating to 2003 for the costs of activating customer ADSL lines (around EUR 25 million);
• multi-year line rental charges of around EUR 6 million for international circuits relating to the subsidiary Tiscali International
Network S.A.;
• marketing costs of around EUR 7 million already invoiced but relating to advertising campaigns that began in January 2004;
• hardware and software maintenance charges of EUR 7.2 million.
ACCRUED INCOME AND DEFERRED CHARGES 31.12.2003 31.12.2002 CHANGE
Accrued income
Rental income -184 (184)
Bank interest 176 684 (508)
Other accrued income 39,941 12,754 27,187
Total 40,117 13,622 26,495
Deferred charges
Leasing charges and user licences - 58 (58)
Rentals 120 97 23
Pre-paid expenses 50,675 28,084 22,591
Interest -11 (11)
Total 50,795 28,250 22,545
Total accrued income and deferred charges 90,912 41,872 49,040