Tiscali 2008 Annual Report Download - page 77

instruments. The new version of IAS 32 and IAS 1 will
come into force as from 1° January 2009. It is not
envisaged that the amendments made will have significant
effects on the Group’s consolidated financial statements.
Improvements to the IFRS
On 23 January 2009, EC Regulation No. 70-2009 was
published, acknowledging a number of changes made to the
International Financial Reporting Standards (IFRS) at EU level.
The changes to the standards which come into force as from
1 January 2009 are indicated below:
•IAS 1 (
Financial statement presentation ): the assets and
liabilities relating to derivative instruments not held for
trading purposes and which do not take on the form of
financial guarantee contracts or hedging instruments, must
be classified in the financial statements, making distinction
between current and non-current assets and liabilities in
relation to their maturity;
•IAS 16 (
Properties, plant and machinery ): the amendment
provides a number of specifications on the classification
and accounting treatment to be adopted by an entity
which during its normal business activities as a rule sells
elements of properties, plant and machinery held for lease
to third parties;
•IAS 19 (
Employee benefits ): the amendment introduced,
to be applied perspectively, clarifies the conduct to be
adopted in the event of changes in employee benefits,
defines the methods for recording the cost/income relating
to the past work services precisely defines the short-term
benefits and the long-term benefits;
•IAS 20 (
Statement of public grants and disclosure on public
assistance
): the amendment, to be applied in perspective,
establishes that the benefit of a public loan at an interest rate
lower than the market one is treated as a public grant;
•IAS 23 (
Financial charges ): the amendment revises the
definition of financial charges;
•IAS 28 (
Equity investments in associated companies ): the
change establishes that, in the event of equity investments
carried at equity, any impairment must not be allocated
to the individual assets (and in particular to any goodwill)
which makes up the book value of the investment, but to
the value of the investee company in its entirety. Therefore,
in the presence of conditions for a subsequent value
writeback, this writeback must be recognized fully;
•IAS 29 (
Accounting in hyperinflationary economies ): these
are changes to a standard not applied by the Group at
present;
•IAS 36 (
Asset impairment ): the amendment envisages that
additional information be provided if the fair value less the
sales costs, is determined using discounted back cash
flow projections;
•IAS 38 (
Intangible assets ): the amendment envisages the
recognition in the income statement of promotional and
advertising costs. It establishes that in the event a company
incurs charges which have future economic benefits without
recording intangible fixed assets, these must be charged to
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 Group’s consolidated financial statements.
Revenues (note 1)
An analysis of the revenues by country is presented below:
Revenues by country (EUR 000) (*) 31.12.2008 31.12.2007
IItaly 295,734 273,355
United Kingdom 672,256 593,481
Other 15,633 16,279
Total 983,623 883,115
(*) net of intra-group revenues and not including other income
The increase in revenues is mainly determined by the
development of services in the broadband access segment and
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CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES