Tiscali 2007 Annual Report Download - page 127

Accounting standards, amendments and interpretations not
yet applicable or not adopted in advance by the Company
On 30 November 2006, IASB issued accounting standard
IFRS 8 – Business Segments, applicable as of 1 January 2009
in replacement of IAS 14 Segment Reporting. The new ac-
counting standard requires that the company bases informa-
tion given in the Segment Report on elements used by
management to make their business decisions, and therefore
requires identification of the business segments based on in-
ternal reporting regularly reviewed by management for re-
source allocation purposes to the various segments and for
performance analysis purposes.
On 29 March 2007, the IASB issued a revised version of IAS
23 –
Financial charges which will be applicable as from 1°
January 2009. In the new version of the standard, the option
has been removed according to which the companies can im-
mediately record – in the income statement - the financial
charges incurred in relation to assets for which a specific pe-
riod of time normally elapses for rendering the asset ready for
use or for sale. The standard will be applicable in a forecast
manner to financial charges relating to assets capitalized as
from 1° January 2009. As of the date of these financial state-
ment, the competent bodies of the European Union had not
yet concluded the approval process necessary for the applica-
tion of this standard.
On 5 July 2007, the IFRIC issued the IFRIC 14 interpretation
on IAS 19 –
Assets for defined-benefit plans and minimum
coverage criteria
which will be applicable as from 1° January
2008. The interpretation provides the general guidelines on
how to determine the limit amount established by IAS 19 for
the recognition of the assets serving the plans and provides
an explanation regarding the accounting effects caused by the
presence of a minimum coverage clause of the plan.
As of the date of these financial statements, the competent
bodies of the European Union had not yet concluded the ap-
proval process necessary for the application of this interpreta-
tion.
On 6 September 2007, the IASB issued a revised version of
IAS 1 –
Presentation of the financial statements which will be
applicable as from 1° January 2009 with the aim of permit-
ting an improved comparability and analysis of the informa-
tion presented in the financial statements by its users.
Following the amendments made, the standard requires that
the information presented in the financial statements be ag-
gregated on a common basis and that the company present an
“extended” statement of the results (“comprehensive in-
come”) which facilitates the readers of the financial state-
ments to distinguish, in an analysis of the changes in
shareholders’ equity, between the transactions concluded with
the shareholders in as such as they are (distribution of divi-
dends, purchase of own shares) and transactions with third
parties. As of the date of these financial statements, the com-
petent bodies of the European Union had not yet concluded
the approval process necessary for the application of this stan-
dard.
In conclusion, shareholders are informed that, the following
interpretations were issued which discipline cases and cir-
cumstances not present within the Tiscali Group:
3‘IFRIC 7 –
Applying the Restatement Approach under IAS
29
Financial Reporting in Hyperinflationary Economies’
3IFRIC 12 –
Service concession arrangements (applicable as
from 1° January 2008 and not yet approved by the Euro-
pean Union).
3‘IFRIC 13 –
Customer Loyalty Programmes (applicable as
from 1° January 2009 and not yet approved by the Euro-
pean Union)
4. Revenues
Operating revenues are represented by:
Revenues EUR (000) 31.12.2007 31.12.2006
Revenues from services provided to Group companies 14,681 14,286
Revenues from services to third parties 16,221 4,515
30,902 18,801
Revenues from services provided to Group companies mainly
refer to the invoicing of services provided by the Company in
favour of Group companies.
This item also includes charges for rights of use of the Tiscali
brand name calculated as a percentage of sums invoiced by
Group companies using the brand name. The increase over
the previous year is mainly due to increased charges for brand
name usage.
Revenues for services provided to third parties are essentially
represented by the partnership agreement with the search en-
gine Google which have been invoiced to the customer by the
Parent Company as from October 2006. The portions of reve-
nues pertaining to the Group companies are then remitted to
the same and at the same time infraGroup costs are recorded
in the financial statements of the Parent Company.
5. Other income
Other income from third parties includes capital gains on the sale
of equity investments.
6. Purchase of materials and outsourced services
Costs for the purchase of materials and outsourced services
amount in total to EUR 23.6 million, compared with EUR 11
TISCALI S.P.A. – SINANCIAL STATEMENTS AT 31 DECEMBER 2007
126