Tiscali 2009 Annual Report Download - page 104

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103
information be provided if the Group determines the recoverable value of cash generating units using
the discounted cash inflow method.
• Amendments to IAS 24 (Related Party Disclosures). On 4 November 2009, IASB issued a new version
of IAS 24 Disclosure of Related Party Transactions, which simplifies the disclosure requirements
concerning related parties involving public entities and clarifies the definition of “related party”. To date,
the competent bodies of the European Union has not yet concluded the approval process necessary for
the application of this standard.
Revenues (note 1)
The reduction in revenues is mainly due to the drop in access segment (both broadband and narrowband), in
revenues from “media and value added services” and in company services.
As mentioned in the “Form and content of accounting statements”, starting from 1 July 2009, the revenues from
ADSL activation and costs related to promotions were discounted over a period of 24 months in consideration
of the change in contract duration and the average duration of ADSL contracts. The net effect of revenues on
the economic result deriving from the change in the accounting estimate is positive and amounts to EUR 0.3
million.
Other income (note 2)
31 December 2009 31 December 2008
Restated
(EUR 000)
Other income 3,097 5,273
Total 3,097 5,273
Other income amounts to EUR 3.1 million and includes the amount of the capital gains from the disposal
of SA llletta for EUR 2.1 million.
Purchase of materials and outsourced services (note 3)
31 December 2009 31 December 2008
Restated
(EUR 000)
Purchase of raw materials and goods for resale 295 149
Line/traffic rental and interconnection costs 93,135 90,411
Costs for use of third party assets 4,687 4,931
Portal services 12,687 20,926
Marketing costs 16,708 36,353
Other services 31,540 42,944
Total 159,052 195,713
The decrease in costs with respect to the same period last year reflects the drop in revenues and application
of strict policies for controlling costs.
Consolidated Financial Statements and Explanatory Notes