Tiscali 2009 Annual Report Download - page 102

101
to disclosure (reportable segments). The reportable segments are components of an entity (operating
segments or combinations of operating segments) in relation to which distinct financial information is
available, periodically assessed by the Chief Operating Decision Maker (CODM) in order to allocate
resources to the segment and assess results. The financial disclosure must be represented with the
same methods and the same criteria used in internal reporting for the CODM. IFRS 8 came into force
starting from the 2009 reporting period and it replaces IAS 14 (Segment reporting). Adoption of the
standard had no effect with regard to valuation of the financial statement items.
• Amendments to IAS 32 (Financial instruments: Disclosure and Presentation) and to IAS 1 (Financial
statement presentation). On 21 January 2009 Regulation (EC) no. 53-2009 was published, which
transposed at EU level the changes made to IAS 32 (Financial Instruments: Disclosure and Presentation)
and to IAS 1 (Financial statement presentation). 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 impose an obligation on the entity in the event of
its liquidation. The amendments to IAS 1 require specific disclosures regarding these instruments.
The amendments are not expected to have significant effects on the Group’s consolidated financial
statements.
• IFRIC 13 (Customer Loyalty Programs). On 16 December 2008 Regulation (EC) no. 1262-2008 was
published, which transposed the changes made to IFRIC interpretation 13 (Customer Loyalty Programs)
at EC level. This interpretation lays down the following:
1. award credits granted to a customer are a separately identifiable element of the transaction itself
and represent rights granted to the customer, for which the customer implicitly paid;
2. the consideration allocated to the award credits is measured by reference to their fair value (i.e.,
the amount for which the award credits could be sold separately) and recognizes the consideration
allocated to award credits as revenue when the entity fulfils its obligations.
Adoption of the standard is not applicable to Tiscali Group since there are no customer loyalty programs.
Improvements to the IFRS
On 23 January 2009 Regulation (EC) no. 70-2009 was published, which transposed at EU level certain
changes made to International Financial Reporting Standards (IFRS). Below is a brief description of the
amendments in force starting from 1 January 2009:
• 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 prospectively, clarifies the
conduct to be adopted in the event of changes in employee benefits, defines the methods for recording
the cost/income relating to past work services and precisely defines short-term and the long-term
benefits;
• IAS 28 (Equity investments in associated companies): the change establishes that, in the event of
equity investments carried at equity, any impairment shall 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 38 (Intangible Assets): the amendment prescribes that promotional and advertising costs be
recognized in the income statement. 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
Consolidated Financial Statements and Explanatory Notes