Tiscali 2013 Annual Report Download - page 132

Annual financial report as at 31 December 2013
Date
File Name
Status
Page
-
Annual Report as at 31
December 2013
132
The 2013 statutory financial statements represent the separate financial statements of the Parent
Company Tiscali S.p.A. and have been prepared in observance of the International Accounting
Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) as approved by
the European Union, as well as the instructions issued by way of implementation of Article 9 of Italian
Legislative Decree No. 38/2005. The IFRS are understood to be 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 areas of the financial
statements which, under the circumstances, presuppose the adoption of applicative assumptions and
those more fully characterized by estimates made, are described in the note Critical decisions in
applying accounting standards and in the use of estimates.
Financial statement formats
The consolidated financial statements are composed of accounting statements (Income Statement,
balance sheet, Statement of changes in consolidated shareholders’ equity, and Cash Flow
Statement), with explanatory notes. The Income Statement was drawn up in line with the minimum
contents fixed by IAS 1 – Presentation of Financial Statements – with costs assignment by nature; the
balance sheet was drawn up by following the scheme pointing out the division of “current/non-current”
assets and liabilities; the Cash Flow Statement was drawn up by following the indirect method.
Accounting standards
General principles
The financial statements were prepared in compliance with the IAS/IFRS International Financial
Reporting Standards (IFRS). The main accounting standards are detailed below. These standards
were applied consistently to all periods presented.
Preparation of the financial statements requires management to make accounting estimates and in
certain cases assumptions in the application of accounting standards. The areas of the financial
statements which, under the circumstances, presuppose the adoption of applicative assumptions and
those more fully characterized by estimates made, are described in the subsequent note of this
section.
Equity investments in subsidiaries
Equity investments in subsidiaries and affiliated companies are recognised at cost, adjusted for any
permanent impairment.
In application of IAS 36, the value of equity investments recognised at cost is reduced if there is
impairment or if circumstances emerge that indicate that said cost is not recoverable. If the impairment
is discovered to no longer apply or is reduced, the book value is increased to the new estimated
recoverable value, within the limits of the value recognised initially.
Impairment of assets
The book value of equity investments, other intangible assets and Property, plant and equipment is
tested for impairment whenever there is an indication that the asset may have suffered impairment.
The assets in question are tested annually or more frequently if there is any indication that those
assets have suffered impairment. If any such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment. Where it is not possible to estimate the