Tiscali 2012 Annual Report Download - page 62

Annual financial report as at 31 December 2012
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Date File Name Status Page
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Annual Report as at 31
December 2012 62
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In conclusion, when analyzing what has already been achieved within the sphere of the process aimed
at enabling the Group to obtain long-term equity, financial and economic equilibrium, the Directors
acknowledge that at present, as already indicated in the 2011 financial statements, uncertainties still
remain, with regards to events and circumstances that may raise considerable doubt on the ability of
the Group to continue to operate under the going-concern assumption, however, after making the
necessary checks and after assessing the uncertainties found in light of the factors described, and
taking into account the period of time available for continuing with the implementation of the measures
aimed at reducing the financial debt and launching all the activities necessary for the rescheduling of
the same by July 2014, they have the reasonable expectation that the Group has adequate resources
to continue operations in the near future and therefore have adopted the going-concern assumption
when preparing the financial statements.
Form and content of the accounting statements
Basis of preparation
The 2012 consolidated financial statements were drawn up by following both the International
Accounting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and
ratified by the European Union, and the measures issued in conformity with Article 9 of Italian
Legislative Decree No. 38/2005. IFRS also include all the reviewed international accounting standards
(“IAS”) and all the interpretations by the International Financial Reporting Interpretations Committee
(“IFRIC”) previously called the 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 financial statement areas
which, under the circumstances, presuppose the adoption of applicative assumptions and those more
greatly characterised by the making of estimates 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 methods for presentation of the consolidated financial statements as at 31 December 2012 were
adapted following the enforcement of IAS 1 – “Presentation of Financial Statements” reviewed in 2007.
This standard lays down new names for the various financial statements 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 indication, in two separate items, of the “Assets disposed
of/held for sale” and “Liabilities related to assets disposed of/held for sale”;
- Statement of comprehensive income: 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 disposed
of/held for sale”. The Group decided to use two schedules.
¾ An income statement schedule that reports only revenues and costs classified by
nature;
¾ A statement of comprehensive income that reports charges and income posted
directly under shareholders’ equity net of tax effects.