Tiscali 2009 Annual Report Download - page 89

Tiscali Group: Annual Report 2009
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are eliminated against the value of the Group’s investment in the companies.
With regard to transactions which concern interests in companies which are already subsidiaries, in the
absence of a specific Standard or interpretation on the subject and referring to the provisions contained
in IAS 8 “Accounting standards, changes in accounting estimates and errors”, the Group has applied the
following accounting approaches, identifying two types of transactions:
• acquisitions/disposals of interests in companies which are already subsidiaries: in the event of
acquisitions the Group pays the minority shareholders a cash amount or a consideration in new shares,
thereby resulting in simultaneous elimination of related minority interests and recording of Goodwill
equating to the difference between the purchase cost of the interests and the book value of the assets
and liabilities acquired proportionally; in the event of disposal, the difference between the transfer value
and the corresponding book value in the consolidated financial statements is recorded in the income
statement (Parent entity extension method);
• intragroup transfer of interests in subsidiary companies which lead to a change in the shareholding:
the interests transferred are recorded at historic cost and the gain or loss emerging from the transfer
is reversed in full. The shareholders’ equity pertaining to minority shareholders that do not directly
participate in the transaction, is adjusted to reflect the change with a corresponding opposite effect on
the shareholders’ equity pertaining to the shareholders of the Parent Company without recording any
goodwill and without producing any effect on the result and the total shareholders’ equity.
Changes in the consolidation area
The consolidation area of the Group includes the financial statements of Tiscali S.p.A. (parent company) and
the companies the latter directly or indirectly controls starting from the date on which it was acquired and until
the date on which control ceases. These subsidiaries are listed in the note List of subsidiaries included in the
consolidation area. Changes in the consolidation area during 2009, when compared with the consolidated
financial statements at 31.12.08, are illustrated as follows:
Companies removed from the consolidation area by sale:
• Ti Net Group: on 26 May 2009 it was sold to the BS private equity fund;
• Tiscali UK Ltd: on 3 July 2009 100% of the shares were sold for cash consideration to Carphone
Warehouse Group Plc.