Tiscali 2008 Annual Report Download - page 75

are based on taxable income likely to be generated in light of
the approved business plans. Such assets and liabilities are
not recognised if the timing differences derive from goodwill
or from the initial recognition (other than in business
combination transactions) of other assets and liabilities in
transactions that affect neither the accounting result nor taxable
income. The book value of deferred tax assets is reviewed at
each balance sheet date and reduced to the extent that it is
no longer likely that sufficient taxable income will be available
to allow all or part of the asset to be recovered.
The recoverability of the deferred taxes recorded in the financial
statements is therefore also assessed on the basis of the
forecasts included in the new Business Plan. These forecasts
are subordinate to the occurrence of the conditions described
in the section
Assessment of the business as a going-concern
and business outlook and prospects
on page 76.
Provisions relating to employees
The provisions associated with employees, and in particular the
Provisions for staff severance indemnities, are determined on the
basis of actuarial assumptions; the changes in these assumptions
could have significant effects on these provisions.
Receivable writedown provisions
The recoverability of the writedowns is assessed taking into
account the risk of non-collection on the same, their ageing
and the significant losses on receivables in the past for types
of similar receivables.
Provisions for risks and charges
Provisions for risks and charges relating to potential legal and
tax-related liabilities are established following estimates made by
the Directors on the basis of appraisals made by the Group’s legal
and tax advisors, concerning the charges that are reasonably
deemed will be incurred in order to settle the obligation. If in
relation to the final result of such appraisals, the Group is called
upon to fulfil an obligation for a sum other than that estimated,
the related effects will be reflected in the income statement.
Fair value calculation
Depending on the instrument or financial statements item to be
estimated, the Directors identify the most suitable method, by
taking into consideration objective market data as much as
possible. In the absence of market values, in other words
quotations, estimating techniques are used, with reference to
those which are most commonly used.
Accounting standards, amendments and interpretations not yet
applicable or not adopted in advance by the Group
As required by section 28 of IAS 8 -
Accounting standards,
changes in accounting estimates and errors
- the IFRS in force
as from 1 January 2008 are indicated hereunder and briefly
illustrated:
•IFRIC 11 (IFRS 2 – Transactions involving own and Group
shares). On 1 June 2007, EC Regulation No. 611-2007 was
published, acknowledging interpretative document IFRIC 11
(IFRS 2 of the Group) at EU level. This interpretation also
confirms that the payment plans based on shares via which
the Company receives services (for example, from employees)
in exchange for own shares, must be recorded as capital
instruments, irrespective of the fact that the entity chooses
to purchase, or is obliged to purchase, these instruments
representative of capital from a third party so as to meet
obligations vis-à-vis its employees. The application of this
interpretation has not had any effect on the consolidated
financial statements at 31 December 2008.
•IFRIC 14 (IAS 19 – The limit relating to an asset serving a
defined-benefits plan, the minimum contribution forecasts
and their interaction). As of 16 December 2008, EC
Regulation No. 1263-2008 was published, acknowledging
interpretative document IFRIC 14 (IAS 19 - The limit relating
to an asset serving a defined-benefits plan, the minimum
contribution forecasts and their interaction) at EU level. This
interpretation provides the general guidelines on how to
determine the limit established by IAS 19 for the recognition
of an asset serving a defined-benefit plan and provides
indications regarding the accounting effects deriving from
the existence of a minimum coverage clause of the plan.
This interpretation is not applied by the Group at present.
•Amendments to IAS 39 (
Financial instruments: statement
and valuation
) and to IFRS 7 (Financial instruments:
supplementary information). On 15 October 2008, EC
Regulation No. 1004-2008 was published, acknowledging
a number of amendments to IAS 39 (Financial instruments:
statement and valuation) and to IFRS 7 (Financial
instruments: supplementary information) which permits,
under particular circumstances, the reclassification of certain
financial assets outside the categories “financial assets at
fair value through the income statement” and “financial
assets available for sale”. The changes to IFRS 7 introduced
new disclosure requirements in relation to the reclassifications
permitted by the amended IAS 39. These changes did not
have any effect on the consolidated financial statements at
31 December 2008 since the Tiscali Group has not made
any of the permitted reclassifications.
New standards and Interpretations acknowledged by the EU but
not yet in force
As required by section 30 of IAS 8 (
Accounting standards,
changes in accounting estimates and errors
) the IFRS in force
as from 1 January 2009 are indicated hereunder and briefly
illustrated:
•IFRS 8 (Business segments). On 21 November 2007, EC
Regulation No. 1358-2007 was published, acknowledging
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CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES