Tiscali 2008 Annual Report Download - page 76

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principle is not applicable to the Tiscali Group since customer
loyalty ritention schemes are not used.
•Amendments to IAS 1 (Financial statement presentation).
On 17 December 2008, EC Regulation No. 1274-2008 was
published, acknowledging the amendments made to IAS 1
(
Financial statement presentation ) at EU level. The main
changes introduced envisage: the presentation in the
statement of changes in shareholders’ equity of all the
changes deriving from transactions with shareholders; and
the statement of the other changes in shareholders’ equity
(other than those with the shareholders) as follows:
1)in a single “Total income statement” schedule, which
shows the revenues, income, costs and charges recorded
directly in the income statement, the profit (loss) for the
period, as well as the analysis of the income and costs
recorded directly under shareholders’ equity (Other
components of the total income statement); or
2)in two statements: one statement which shows the
components of the profit (loss) for the period (separate
income statement Schedule) and a second statement
which starts off from the profit (loss) for the period and
shows the items of the statement of the other
components of the total income statement (Total income
statement schedule).
The revised version of IAS 1 comes into force as from 1° January
2009. The adoption of the standard has not had any effect with
regard to the valuation of the financial statement items.
•Amendments to IFRS 2 (Payments based on shares). On 16
December 2008, EC Regulation No. 1261-2008 was published,
acknowledging the changes made to IFRS 2 (
Payments based
on shares
) at EU level. The standard specifies the definition
of “accrual conditions” and specifies the cases when the failure
to achieve a condition leads to the registration of cancellation
of the assigned right. The revised standard comes into force
as from 1 January 2009. It is envisaged that the application of
these provisions will not have any effect on the Group’s
consolidated financial statements.
•Amendments to IAS 32 (Financial instruments: Statement
in the accounts) and to IAS 1 (Financial statement
presentation). On 21 January 2009, EC Regulation No.
53-2009 was published, acknowledging certain
amendments made to the standards IAS 32 (
Financial
instruments: Statement in the accounts
) and IAS 1
(
Financial statement presentation ) at EU level. The changes
to IAS 32 require, in the presence of certain conditions,
the classification under shareholders’ equity of certain
financial instruments with the option to sell (
puttable
instruments
) or which oblige the entity in the event of
winding up of the same. The amendments to IAS 1 require
that specific disclosure be provided regarding said
IFRS 8 (
Business segments ) at EU level. This standard
requires that an entity prepare information (quantitative
and qualitative) regarding the related sectors subject to
disclosure (reportable segments). The reportable segments
are components of an entity (business segments or
combinations of business segments) in relation to which
distinct financial information is available, periodically
assessed by the so-called Chief Operating Decision Maker
(CODM) for the purpose of allocating the resources to the
sector and assessing the results. The financial disclosure
must be represented by means of the same methods and
with the same criteria used in the internal reporting for
the CODM. IFRS 8 comes into force as from 2009 and
replaces IAS 14 (
Segment reporting ). The adoption of the
standard has not had any effect with regard to valuation
of the financial statement items.
•Amendments to IAS 23 (Financial charges) On 10
December 2008, EC Regulation No. 1260-2008 was
published, acknowledging the amendments made to IAS
23 (
Financial charges ) at EU level. The main amendment
made to IAS 23 concerns the elimination of the option
present in the previous version of the standard which
envisaged, for financial charges, the possibility of
registration in the income statement in the period they are
incurred instead of their capitalization (
permitted treatment ).
Therefore, in the revised version of IAS 23, financial
charges which are directly attributable to the acquisition,
construction or production of an asset which requires a
significant period of time before being ready for its
envisaged use or sale (so-called qualifying assets), must
be capitalized as part of the cost of said asset. The new
version of IAS 23 comes into force as from 1 January 2009.
•IFRIC 13 (Customer loyalty ritention schemes). On 16
December 2008 EC Regulation No. 1262-2008 was
published, acknowledging the interpretative document
IFRIC 13 (
Customer loyalty ritention schemes ) at EU level,
which provides the general guidelines for the recording of
customer loyalty ritention schemes. This interpretation is
characterized by the following elements:
1)the reward points offered to customers are considered to be
an element identifiable separately from the original sale of
the product or service with which they are associated and
therefore they represent a right which the customer has
implicitly paid for;
2)the portion of the price allocated to the reward points must
be valued with reference to their fair value (in other words
at the value at which the reward points could be sold
separately) and recorded as a revenue to be differed until
the moment the company fulfils its obligation.
IFRIC 13 comes into force as from 1 January 2009, using the
retrospective method envisaged by IAS 8. The adoption of the
CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES