Tiscali 2009 Annual Report Download - page 85

Tiscali Group: Annual Report 2009
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Form and content of accounting statements
Basis of preparation
The 2009 consolidated financial statements were drawn up by following both the International Accounting
Standards (“IFRS”) issued by the Accounting Standards Board (“IASB”) and ratified by the EURpean Union,
and the measures issued in conformity with Article 9 of Italian Legislative Decree no. 38/2005. IFRS include
also all the reviewed international accounting standards (“IAS”) and all the interpretations by the International
Financial Reporting Interpretations Committee (“IFRIC”) previously called Standing Interpretations Committee
(“SIC”).
Preparation of the financial statements requires management to make accounting estimates and in certain
cases assumptions in the application of accounting standards. The areas where assumptions and estimates are
significant to the financial statements are described in Critical decisions in applying accounting standards and
in the use of estimates.
In accordance with applicable legal rules and provisions, the financial statements were drawn up on a
consolidated basis and were audited by Reconta Ernst & Young S.p.A..
Financial Statement Formats
The consolidated financial statements were drawn up in line with IAS 1 – “Presentation of Financial
Statements”. This standard lays down new names for the schedules, namely:
• The balance sheet: according to IFRS, assets and liabilities are to be posted as current and non-current
or, alternatively, according to the order of their liquidity. The Group chose current and non-current
classification with two separate items for “Assets sold/held for sale” and “Liabilities related to assets
sold/held for sale”;
• Total Income Statement: IFRS require that this includes all economic effects for the period, regardless
of whether these were posted to the income statement or shareholders’ equity, and a classification of
items based on their nature or destination, in addition to separating the economic results of operating
assets from the net result of “Assets sold/held for sale”. The Group decided to use two schedules:
- Prospetto di conto economico che accoglie solo i ricavi e i costi classificati per natura;
- Prospetto di conto economico complessivo che accoglie gli oneri e i proventi imputati direttamente
a patrimonio netto al netto degli effetti fiscali.
• Cash Flow Statement: IAS 7 prescribes that the cash flow statement should report cash flow classified
between assets for operations, investment and financing and posting separately the total of financial
flow deriving from “Assets sold/held for sale”. Cash flow deriving from operating assets can be posted
according to the direct method or using the indirect method. The Group decided to use the indirect
method. With reference to Consob resolution no. 15519 of 27/7/2006 with regards to financial statement
formats, it should be mentioned that specific sections were included to show significant relationships
with associated parties, as well as specific items in the income statement in order to show, where
existing, one-off significant transactions during regular operations.
All figures shown in the statements and explanatory notes, unless otherwise specified, are in thousands of EUR.
The data from the previous financial statements, provided for comparison, are shown to take into account
the changes introduced by IAS 1 and disposal of company assets in 2009, as prescribed by IFRS 5 and
described herein.