Tiscali 2007 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 of the 2007 Tiscali annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 165

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165

At 31 December 2007, the increase by EUR 59.7 million recor-
ded in the item Properties is attributable to the sale & lease back
transaction relating to the Sa llletta headquarters.
31. Other non-current liabilities
EUR (000) 31.12.2007 31.12.2006
Payables to suppliers 24,923 29,929
Other payables 95,885 101,469
Total 120,807 131,398
The balance of Other non-current liabilities mainly includes the
payable due to the former shareholders of Video Network Ltd
relating to the current value of the tax losses of this company,
amounting to EUR 93.9 million, as well as medium/long-term
trade payables due to suppliers for the purchase of plant linked
to the stipulation of IRU (indefeasible right of use) contracts orig-
inated by the investments concerning the ULL project.
32. Liabilities for pension obligations and staff
severance
The table below shows the period movements:
EUR (000) 31.12.2006 Provisions Utilisation 31.12.2007
Staff severance 6,194 2,719 (3,061) 5,852
Total 6,194 2,719 (3,061) 5,852
The staff severance provision, which comprises the indemni-
ties accrued in favour of employees, amounts to EUR 5.8 mil-
lion and refers to the Parent Company and the subsidiaries
operating in Italy.
In accordance with national regulations and laws, the amount
due to each employee matures depending on the service pro-
vided, and has to be immediately disbursed when the employ-
ee leaves the company. At the end of the work relationship,
the amount due is calculated pursuant to Italian civil and
work law, on the basis of the duration of the work relation-
ship itself and the taxable remuneration of each employee.
The liability is annually adjusted in compliance with the offi-
cial index of living cost, and with the interests fixed by law.
It is not associated with any condition or period of accrual,
or with any obligation of financial borrowing; therefore, there
are no assets in the service of the provision. In compliance
with IAS 19, the provision was recorded under “Plan with
definite performances”.
In compliance with the new rules introduced by Italian Leg-
islative Decree no. 252/2005, and by Law no. 296/2006
(Finance Act 2007), for the companies with at least 50 employ-
ees, the staff severance indemnities accrued from 2007 are
ascribed either to the Treasury Fund of the social security (from
1 January) or to the supplementary types of pension (from the
option month), and acquire the nature of “Plan with definite
contributions”. However, the revaluations of the provision exist-
ing at 31 December 2006 (carried out on the basis of the offi-
cial index of living cost and of the legal interests) and the quo-
tas accrued with companies with less that 50 employees remain
as staff severance indemnities.
Following IAS 19, for estimating staff severance indemnities,
the following methods were used: the Traditional Unit Credit
Method for companies with at least 50 employees, and the
Projected Unit Credit Cost – service pro rate for the other com-
panies, in accordance with the following stages:
3on the basis of a series of financial hypotheses (increase in
living cost, remuneration, etc.), the possible future perfor-
mances which might be disbursed in favour of each employee
registered in the programme in the case of retirement, decea-
se, disability, resignation, etc. were projected. The estima-
te of future performances includes any foreseeable increa-
ses relating to a further length of service, and to the alleged
growth of the remuneration received at the date of estima-
te, only for the employees of companies with less than 50
employees;
3the current average value of future performances was cal-
culated at the date of estimate, on the basis of the adopted
annual interest rate, and of the probability of each perfor-
mance to be really disbursed.
CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES AT 31 DECEMBER 2007
98
Leasing included in Computers, Concessions Broadband service Other Total
Intangible assets software and and similar rights activation costs
EUR (000) development costs
NET VALUE
31 December 2006 - 631 - - 631
31 December 2007 - 431 - - 431
Leasing included in Tangible assets Properties Plant and machinery Other assets Total
EUR (000)
NET VALUE
31 December 2006 - 25,929 - 25,929
31 December 2007 59,711 48,473 0 108,145