Tiscali 2012 Annual Report Download - page 63

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 63
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- 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 the cash flows deriving from "Assets disposed of/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 July 2006 with regard 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 Euro.
Segment reporting
Under Regulation (EC) No. 1358/2007 dated 21 November 2007, the European 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 essentially requires one 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 in which the Group’s activities are segmented 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. The geographic areas are
represented in particular by:
• Italy;
• Corporate e Other business: minor Italian companies and corporate activities.
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 in this financial statement item 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