Tiscali 2009 Annual Report Download - page 86

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Segment reporting
With Regulation (EC) no. 1358/2007 of 21 November 2007, the EURpean Commission approved the
introduction of IFRS 8 “Operating Segments” to replace IAS 14 “Segment Reporting”. IFRS 8 lays down the
information to provide in the financial statements concerning the operating segments where the company
operates.
Operating segment means the unit of an entity:
• that undertakes business activities that generate revenues and costs (including revenues and costs
related to transactions with other units of the same entity);
• whose operating results are regularly reviewed by upper level management in order to make decisions
on the resources to allocate to the segment and assess results;
• who has separate financial statements.
Unlike the provisions of IAS 14, this standard substantially prescribes to determine and report the results
of operating segments according to the “management approach”, i.e., according to methods used by
management for internal reporting to assess performance and allocate resources to the various segments.
The application of this standard did not have an impact on the segment report since the operating segments
are the same as when IAS 14 “Segment Reporting” was applied.
The activities of the Tiscali Group and the related strategies, as well as the underlying activities linked to
head office control, are structured and defined by geographic area, which therefore represents the primary
segment for the purposes of segment reporting. The geographic areas are represented in particular by:
• Italy
• Corporate and other business: minor Italian companies and corporate activities.
The activities of Tiscali UK Ltd and the Ti Net Group sold off in the first quarter of 2009, reported in the
note Operating assets sold and/or held for sale, are no longer represented as geographic areas in segment
reporting.
Lines of business (Access, Voice, Business services / Business, Media) represent the secondary reporting
segment, at sector information level.
Assets held for sale and discontinued operations
Non-current assets and/or groups of assets undergoing disposal (‘Assets Held for Sale and Discontinued
Operations)’, as required by IFRS 5, were classified under a specific item in the balance sheet and are
assessed at the lower of the asset’s previous book value and market value, net of any sales costs, until the
disposal of the assets themselves.
The assets are thus classified if it is estimated that their book value will be recovered by disposal rather than
by continued use. This condition is observed only when the sale is highly probable, the asset is available for
immediate sale in its present condition and the Board of Directors of the parent company is committed to
the sale, completion of which should be expected within one year from the date of classification.
After the sale, the remaining values were reclassified in the different balance sheet items.
Gains and losses on assets held for sale and/or assets disposed of were listed and continue to be listed
under the item ‘Results from assets disposed of and/or intended to be disposed of (discontinued operations)
Consolidated Financial Statements and Explanatory Notes