Tiscali 2009 Annual Report Download - page 101

Tiscali Group: Annual Report 2009
100
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 market objective data as much as possible. In absence of
market values, that is, quotations, estimating techniques are used, with reference to the ones which are
most commonly used.
Accounting standards, amendments and interpretations effective from 1 January 2009
Below is a brief description of IFRS in force starting from 1 January 2009:
• IAS 1 (Presentation of Financial Statements). On 17 December 2008 Regulation (EC) no. 1274-2008
was published, which transposed the changes made to IAS 1 (Presentation of Financial Statements)
at EC level. The primary changes introduced include: 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 came into force as from 1 January 2009. The adoption of the standard had no
effect with regard to the valuation of the financial statement items.
The standard was retroactively applied by Tiscali Group before starting from 1 January 2009. All the changes
generated by transactions with non-shareholders were posted in two schedules referred to as Income
Statement and Total Income Statement respectively. Thus, presentation of the Statement of Changes in
Shareholders’ Equity was changed.
• Amendments to IAS 23 (Financial charges) On 10 December 2008, EC Regulation No. 1260-2008
was published, transposing 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 expected use or sale (so-called qualifying assets), must be capitalized as part of the
cost of said asset. However, there were no significant accounting effects following the revision of this
standard.
• Amendments to IFRS 2 (Share-based Payment) EC Regulation no. 1261-2008 transposing the
amendments made to IFRS 2 (Share-based Payment) at EU level. The standard specifies the definition
of “vesting conditions” and lays down cases where failing to reach a condition results in cancelation of
the option. As at 31 December 2009 there were no accounting effects since the stock option plans in
place do not have vesting conditions other than service and performance, nor were any plans cancelled.
• IFRS 8 (Operating Segments). On 21 November 2007 Regulation (EC) no. 1358-2007 was published,
which transposed the changes made to IFRS 8 (Operating Segments) at EC level. This standard requires
that an entity prepare information (quantitative and qualitative) regarding the related segments subject