Tiscali 2009 Annual Report Download - page 170

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New Principles and interpretations Incorporated by the EU, Not Yet in Force, and Not Yet Adopted in
Advance.
As required by IAS 8 (accounting principles. Changes to accounting estimates and errors) the possible
impact of the new principles or of the new interpretation on the consolidated financial statements is set
out below. These principles which came into force after 31 December 2009, have not been applied by the
Group in advance.
• Amendments to IFRS 3 (Business Combinations). On the 3 June 2009 the European Commission
approved an updated version of IFRS 3 by regulation no. 495/2009. The main amendments made
involve the removal of the commitment to value single assets and liabilities in a subsidiary at the fir
value in all successive acquisitions, in the case of a purchase of subsidiary companies in stages.
Goodwill will only be determined in the final acquisition stage and shall be equal to the difference
between the value of any shareholdings immediately before the purchase, the transacted consideration
and the fair value of the net assets purchased. Furthermore, in the case in which the Group were not
to acquire 100% of the equity, the share of interest belonging to third parties may be value wither at
fair value or using the approach already outlined under IFRS 3. The revised version of the principle
provides, furthermore, that all costs connected with the company consolidation and the reporting at the
date of purchase of liabilities for payments subject to conditions. The new rules must be applied in the
future from the 1 January 2010.
• Amendments to IAS 27 (Consolidated and separate financial statement). By regulation no. 494/2009
on the 3 June 2009 the European Commission amended IAS 27, establishing that the amendments
of the shares of interest that do not form a loss of control must be treated as equity transactions and
thus must have the net assets as a cross-entry, excluding the possibility previously allowed of noting
any goodwill or a capital value as the difference between the consideration paid/received and the value
per share of the net assets purchased/sold. Furthermore, it is established that when a parent company
transfers the control of its own subsidiary, by still continues to retain an interest in the company, it
must value the shareholding retained at the fair value and allocate any revenues or losses arising from
the loss if control to the income account. Lastly the amendment of IAS 27 demands that all losses
attributable to minority partners shall be allocated to the interest share related to third parties, even
when these exceed their actual shareholding in the equity of the subsidiary. The new rules must be
applied from the 1 January 2010. Amendments to IFRS 5 (Non current assets held for sale and other
operating assets sold). This principle establishes that, if a company is committed to a sales plan that
includes the loss of control of a subsidiary, all the assets in the subsidiary company must be reclassified
as assets intended for sale, even if after the sale the company will still only hold a minority stake in the
subsidiary. The amendment must be applied from the 1 January 2010 onwards.
• Amendments to IAS 36 (Asset impairment). The amendment to this principle provides that additional
information must be provided in the case in which the group determines the recoverable value of the
cash generating units by using the updated cash flow approach.
• Amendments to IAS 24 (Transactions with Related parties) On the 4 November 2009, IASB issued a
revised version of IAS 24 that gives information on transactions with related parties which simplifies the
information requirements regarding related parties where public bodies are involved and clarifies the
definition of “related parties”). As of the date of issue of the present document, the competent bodies
of the European Union had not yet concluded the approval process necessary for its application.
Tiscali S.p.A. Accounting Statements and Explanatory Notes