Tiscali 2009 Annual Report Download - page 111

Tiscali Group: Annual Report 2009
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Earnings (Losses) per share (note 12)
The earnings per share from operating activities and those disposed of amounted to EUR (0.55). This
amount was calculated by dividing the net loss for the year attributable to the ordinary shareholders of the
Parent Company, equating to EUR (384,825,826), by the average weighted number of ordinary shares in
circulation during the year, equating to 698,966,875.
The earnings per share from operating assets amounted to EUR (0.02), calculated by dividing the operating
assets, amounting to EUR (12,512,604) by the average weighted number of ordinary shares in circulation
during the year, equating to 698,966,875.
The potential shares deriving from the stock option conversions had an anti-diluting effect and therefore
were not considered in the calculation of the result per share.
The diluted earnings per share, from operating assets and those disposed of, were calculated by dividing the
net earnings attributable to the ordinary shareholders of the Parent Company and the result from operating
activities, by the average weighted number of ordinary shares in circulation during the year.
Goodwill (note 13)
The goodwill reported in the consolidated financial statements at 31 December 2008 originating from the
acquisitions made by Tiscali in previous years was entirely referred to the assets held in the United Kingdom.
The sale of these assets on 3 July 2009 (see note 11 “Operating assets disposed of and/or assets held for
sale”) entailed a total reversal of goodwill reported in the financial statements.
Impairment test of assets (note 14)
As mentioned in the section on accounting policies, at the date of the financial statements, also considering
the presence of impairment indicators, an impairment test was performed on assets, in accordance with IAS
36 and prescribed in the joint document Banca d’Italia / Consob / ISVAP no. 4 of March 2010.
The impairment test on assets was performed by comparing the value of assets reported at 31 December
2009 and their utilization value, determined based on the following essential elements.
(i) Definition of Cash Generating Units
The Group identified the Cash Generating Units with the segments set forth in the segment reporting
(see section “Segment reporting (by geographic area and business segment”) defined and structured
by geographic area. The impairment test on assets was performed with respect to the Cash Generating
Units “Italy” (essentially the subsidiary Tiscali Italia S.p.A.) and the entire Group.
(ii) Criteria for estimating recoverable amount
The utilization value of the Cash Generating Units (CGU) was determined by discounting the cash flows
deriving from the Business Plan approved (“2009/2013 Plan”).