Tiscali 2009 Annual Report Download - page 129

Tiscali Group: Annual Report 2009
128
Other non-current liabilities (note 28)
31 December 2009 31 December 2008
(EUR 000)
Payables to suppliers 12,651 13,011
Other payables 1,583 82,434
Total 14,234 95,444
Payables to suppliers represent medium/long-term trade payables linked to the stipulation of IRU contracts
(indefeasible right of use) deriving from investments relating to the LLU project, which provide for deferred
payment.
Liabilities for pension obligations and staff severance indemnities (note 29)
The table below shows the period movements:
31
December
2008
HFS/
Discontinued Provisions Utilisation
31
December
2009
(EUR 000)
Staff severance 5,001 (210) 2,165 (2,738) 4,218
Total 5,001 (210) 2,165 (2,738) 4,218
The staff severance provision, which comprises the indemnities accrued in favour of employees, amounted
to EUR 4.2 million at 31 December 2009 and refers to the Parent Company and the subsidiaries operating
in Italy.
In accordance with Italian Law No. 297/1982, the amount due to each employee accrues depending on
the service provided, and has to be immediately disbursed when the employee leaves the company. On
termination of the employment contract, the amount due is calculated based on the duration of the contract
and the taxable salary of each employee. The liability is annually adjusted in compliance with the official
index of living cost, and with the interests fixed by law. It is not associated with any condition or period of
accrual, or with any obligation of financial borrowing; therefore, there are no assets in the service of the
provision. In compliance with IAS 19, the provision was recorded under “Plan with definite performances”.
In compliance with the new rules introduced by Italian Legislative Decree no. 252/2005, and by Law no.
296/2006 (Finance Act 2007), for the companies with at least 50 employees, the staff severance indemnities
accrued from 2007 are ascribed either to the Treasury Fund of the social security (from 1 January) or to
the supplementary types of pension (from the option month), and acquire the nature of “Plan with definite
contributions”. However, the revaluations of the provision existing at 31 December 2006 (carried out on the
basis of the official index of living cost and of the legal interests) and the quotas accrued with companies
with less that 50 employees remain as staff severance indemnities.
Following IAS 19, for estimating staff severance indemnities, the following methods were used: the Traditional
Unit Credit Method for companies with at least 50 employees, and the Projected Unit Credit Cost – service
pro rate for the other companies, in accordance with the following stages:
• on the basis of a series of financial hypotheses (increase in living cost, remuneration, etc.), the