Tiscali 2008 Annual Report Download - page 128

the income statement when the company itself has the right
to gain access to the asset, if this involves the purchase of
assets, or when a service is rendered, if this involves the
purchase of services. Furthermore, the standard has been
amended to clarify in which cases it is possible to adopt
“produced units method” for the amortization of intangible
fixed assets with a specified useful life;
•IAS 39 (
Financial instruments: statement and valuation ):
the amendment clarifies how the calculation of the new
effective rate of return of a financial instrument must be
calculated on conclusion of a fair value hedge; it also
specifies the cases when it is possible to reclassify a
derivative instrument in and outside the category “fair
value through the income statement”;
•IAS 40 (
Property investments ): these are changes to a
standard not applied by the Group at present.
.
Furthermore, IFRS 5 (
Non-current assets held for sale and
operating assets disposed of
) was amended: the amendment
envisages that if an entity undertakes a sales programme which
involves the loss of control over a subsidiary, it must classify all
the assets and liabilities of said subsidiary as held for sale,
leaving aside the fact that, after the sale, it maintains a minority
interest in the former subsidiary. The new version of IFRS 5 will
come into force as from 1 January 2010.
It is envisaged that the application of the “improvements to the
IFRS” as indicated above, does not have any significant effects
on the Company’s statutory financial statements.
Revenues (note 1)
Operating revenues are represented by:
Revenues EUR (000) 31.12.2008 31.12.2007
Revenues from services provided to Group companies 15,981 14,681
Revenues from services to third parties 1,444 774
17,425 15,455
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 on the Tiscali
brand name calculated as a percentage of sums invoiced by
Group companies using the brand name.
Revenues from services provided to third parties include EUR 12
million relating to revenues deriving from the partnership
agreement with the search engine Google which flows in and is
invoiced to the customer by the parent company.
In accordance with the international accounting standards
TISCALI S.P.A. – FINANCIAL STATEMENTS AND EXPLANATORY NOTES
127
(“IFRS”), these revenues are stated net of infraGroup costs
generated by remitting the portions of revenue pertaining to the
Group companies, for an identical amount. A similar approach
was used for 2007 with a revenue value of EUR 16 million fully
adjusted by infraGroup’s costs for an identical amount.
The residual balance of EUR 1.4 million in 2008 (EUR 0.8
million in 2007) is represented by sundry income, expenses
recharged and out-of-period expense (the latter classified last
year under other income).
The following table shows the effect of the reclassifications made
with respect to the previous year’s values:
Revenues EUR (000) 31.12.2008 31.12.2007
Revenues from services provided to Group companies 15,981 14,681
Revenues from services to third parties 13,921 16,221
Costs from Group companies (Google Search) (12,477) (15,977)
Reclassification of out-of-period income 529
Revenues from services to third parties (net) 1,444 774
17,425 15,455
Revenues by country
EUR (000) 31.12.2008 31.12.2007
Revenues from services provided
to Group companies 15,981 14,681
- Italy 6,149 4,720
- Netherlands 75 1,471
- Germany 259 1,886
- UK 8,898 6,605
Revenues from services to third parties 1,444 774
- Italy 1,444 774
17,425 15,455
Other income (note 2)
Other income, presenting a zero balance in 2008, besides the
out-of-period amounts reclassified under revenues (see note
7.5.4) also essentially included capital gains on the sale of the
equity investments in 2007.
Purchase of materials and outsourced services (note 3)
Costs for purchases of materials and outsourced services
amounted in total to EUR 7.9 million, compared with EUR 7.6
million in 2007, and are stated net of the infraGroup costs
generated by the partnership agreement with the search
engine Google for a total of EUR 12.5 million (EUR 15.9 million
in 2007). For greater details on this reclassification, see the
comments to the item Revenues.
Costs for services provided by third parties include costs for
professional consulting with regard to legal, administrative and