Tiscali 2012 Annual Report Download - page 64

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 64
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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) if the conditions listed below and established by IFRS 5 apply to such assets:
a) they represent an important independent line of business or geographic business area;
b) they are part of a single co-ordinated plan to dispose of an independent major line of business
or geographic business area;
c) they involve subsidiaries originally acquired exclusively with a view to resale.
The income statement item entitled ‘Results from assets disposed of and/or destined to be disposed
of’ contains the following, in a single item and net of the related tax effects:
The results for the period achieved by subsidiaries held for sale, including any adjustment of
their net assets to market value (fair value);
The result of the ‘discontinued’ operations, including the result for the period achieved by
subsidiaries up to the date of transfer of control to third parties, together with gains and/or
losses deriving from disposal.
Analysis of the composition of the overall results for the assets concerned is indicated in the
explanatory notes.
The financial effects and effects on equity from the disposals described above are shown in the note
Operating assets disposed of and/or assets held for sale.
Seasonal nature of revenues
Tiscali’s activities are not affected to a significant extent by events linked to the seasonal nature of
business.
Basis of consolidation
The consolidation area includes the parent company Tiscali S.p.A. and the companies over which
Tiscali – either directly or indirectly – has the power to govern the financial and operating policies so
as to obtain economic benefits from their activities. In the specific circumstances relating to Tiscali,
control involves the majority of voting rights exercisable at ordinary shareholders’ meetings of the
companies included in the consolidation area.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are
de-consolidated from the date on which control ceases.
When preparing the consolidated financial statements, the assets, liabilities, costs and revenues of the
consolidated companies are consolidated line-by-line for the entire amount, allocating the portion of
equity and results for the year due to minority shareholders in the specific balance sheet and income
statement items. The book value of the equity investment in each of the subsidiaries is eliminated
against the corresponding portion of the shareholders’ equity of each of the subsidiaries inclusive of
any adjustments at fair value as of the acquisition date. The positive difference emerging is recorded
as goodwill under intangible assets, as illustrated further on, while the negative difference (negative
goodwill) is recorded in the income statement.
All significant intra-company transactions within the Group and the relevant balances are eliminated on
consolidation, as are unrealised gains and losses on intra-group operations.