Tiscali 2007 Annual Report Download - page 132

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The table below indicates movements in the period for each
investment.
Disposals during the year concerned the equity investment in
the company Tiscali Services S.p.A., transferred for EUR 29.4
million to the subsidiary Tiscali Italia S.p.A. in December
2007, involving a capital loss of EUR 0.5 million; it was sub-
sequently absorbed via merger during 2008. In February
2007, the Spanish subsidiary Tiscali Telecomunicaciones SA
was also disposed of to World Wide Web Ibercom S.L. for a
total of EUR 0.5 million.
As indicated in the section on accounting policies in these
notes to the financial statements, equity investments are
recognised at cost, with the writedown of any permanent loss
of value determined via impairment testing. It is considered
that the book value of equity investments at 31 December
2007 remains valid, given the significant amount of goodwill
intrinsic to the equity investments.
For direct or indirect equity investments of a strategic nature,
verification of the book value for the equity investments was
performed in a similar manner to the previous year, by devel-
opment of a specific impairment test based on discounting of
expected cash flows as indicated in the Tiscali Group busi-
ness plan.
Considerations emerging from the analysis of the book values
of equity investments held by the Company, together with re-
lated effects on the Tiscali S.p.A. financial statements at 31 De-
cember 2007, and a brief comment on changes in the period,
are provided below.
Connect Software Inc.
This equity investment, acquired in December 2000, was fully
written down in 2004 since the related intangible assets (soft-
ware licenses) are no longer used in the Tiscali Group, and no
realisation and/or sale to third parties is anticipated.
Energy Byte Srl in liquidation
By resolution of the shareholders’ meeting of 11 March, this
company was placed in liquidation in 2004. The equity invest-
ment was fully written down in previous periods.
Quinary S.p.A.
This company operates in systems integration software produc-
TISCALI S.P.A. – SINANCIAL STATEMENTS AT 31 DECEMBER 2007
131
ASSOCIATED COMPANIES 31.12.2007 31.12.2006
Cost Reval / (write-down) Book value Cost Reval / (write-down) Book value
STS Studi Tecnologie e Sistemi S.r.l. 1,291 (811) 480 1,291 (811) 480
STUD Soc. Consortile a.r.l. - - - 15 - 15
1,291 (811) 480 1,306 (811) 495
OTHER COMPANIES 31.12.2007 31.12.2006
Cost Reval / (write-down) Book value Cost Reval / (write-down) Book value
Mix S.r.l. - - - 1 - 1
Tiscali Int.l Network S.p.A. - - - 34 - 34
- - - 35 - 35
SUBSIDIARIES Balance Increases (Disposals) Reval/(write-down) Balance
31.12.2006 31.12.2007
Connect Software Inc. --- --
Energy Byte S.r.l. in liquidazione - - - - -
Ideare S.p.A. --- --
Quinary S.p.A. 226 824 - (693) 357
Tiscali Czech Republic a.s. - - - - -
Tiscali Deutschland Gmbh 6,387 - - (6,387) -
Tiscali Finance SA 125 - - (125) -
Tiscali Italia S.p.A. 55,439 - - - 55,439
Tiscali Motoring S.r.l --- --
Tiscali Services S.p.A 29,828 8,358 (29,978) 8,208) -
Tiscali Telecomunicaciones SA 125 - (125) - -
World Online International N.V. 1,076,270 - - - 1,076,270
Tiscali Int.l Network S.p.A. 1,306 - - - 1,306
Tiscali Financial Services Sa - 31 - - 31
1,169,706 9,213 (30,103) (15,413) 1,133,403