Tiscali 2012 Annual Report Download - page 127

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22
obligation. If in relation to the final result of such judgements, the Group is called upon to fulfil an
obligation for a sum other than that estimated, the related effects are reflected in the income statement.
Equity investments
Impairment testing, with particular regard to equity investments, is performed annually as indicated
previously under “Impairment of assets”. The ability of each unit (investment) to produce cash flows
sufficient to recover the value recorded in the financial statements is determined on the basis of
forecast economic and financial data of the company concerned or any subsidiaries. The development
of such data, as well as the determination of an appropriate discount rate, requires a significant use of
estimates
Fair value calculation
Depending on the instrument or financial statements item to be estimated, the directors identify the
most suitable method, by taking into consideration objective market data as much as possible. In
absence of market values, that is, quotations, estimating techniques are used, with reference to the
ones which are most commonly used.
Accounting standards, amendments and interpretations effective from 1 January 2012
As from 1 January 2012, the following new standards and interpretations were issued, as listed below:
IAS 12 - Deferred taxes : recovery of underlying assets
This amendment clarifies the determination of the deferred taxes on property investments valued at fair
value. The amendment introduces the refutable presumption that the book value of the property
investment valued using the fair value model envisaged by IAS 140, will be recovered by means of sale
and that, consequently, the related deferred taxation should be valued on a sale basis. The
presumption is refuted if the property investment can be depreciated and held with the aim of using over
time essentially all the benefits deriving from the property investment itself, instead of achieving these
benefits by means of sale. The effective date of adoption of the amendment is for the years
commencing 1 January 2012 or subsequent thereto. The amendment has not had any impact on the
financial position, results or disclosure of the Group.
IFRS 1 – Severe hyperinflation and removal of fixed dates for first-time adopters
The IASB has provided guidelines on how the entity should resume the IFRS financial statement
presentation when the related reporting currency ceases to be subject to severe hyperinflation. The
effective date of adoption of the amendment is for the years commencing 1 July 2011 or subsequently.
This amendment has not had any impact on the Group.
IFRS 7 – Disclosures – Transfers of financial assets
The amendment requires supplementary disclosure relating to the assets transferred which are not fully
derecognised from the financial statements; the company must provide the information which permits
the users of the financial statements to comprehend the relationships between those assets which are
not cancelled and the liabilities associated with the same. If the assets are derecognised in full, but the
company has a residual involvement, disclosure must be provided which allows the users of the
financial statements to assess the nature of the residual involvement of the entity in the cancelled
assets and the risks associated with the same. The effective date of adoption of the amendment is for
the years commencing 1 July 2011 or subsequently. The Group does not have assets with these