Tiscali 2013 Annual Report Download - page 134

Annual financial report as at 31 December 2013
Date
File Name
Status
Page
-
Annual Report as at 31
December 2013
134
effective interest rate method, calculated considering the issue costs and any other premium or
discount envisaged on settlement.
Liabilities for pension obligations and staff severance indemnities
Defined benefit schemes (as classified by IAS 19), in particular the Staff Severance indemnities
relating to employees of the parent company and the subsidiaries with registered offices in Italy, are
based on valuations performed at the end of each financial year by independent actuaries. The liability
recognised in the balance sheet is the current value of the obligation payable on retirement and
accrued by employees at the balance sheet date. It should be specified that no assets are held in
support of the above scheme.
As from 1 January 2007, the 2007 Finance Bill and the related implementing decrees introduced
significant amendments to the regulation of staff severance indemnities (TFR), including the worker’s
choice regarding the allocation of their accruing TFR to supplementary welfare funds or to the “
Treasury Fund” managed by INPS (national insurance institute for social security).
Therefore, the obligation vis-à-vis INPS and the contribution to the supplementary pension schemes
takes on the form, as per IAS 19, of “Defined contribution schemes”, while the portions recorded in the
staff severance indemnity (TFR) remain “Defined benefit schemes”.
Furthermore, the law changes taking place starting from 2007 implied a new calculation of actuarial
assumptions, and of the consequent methods used to calculate staff severance indemnities, whose
effects were directly booked to the income statement.
As from 1 January 2013 with retrospective efficacy, the Company adopted the new version of the
accounting standard IAS 19 “employee benefits”.
The most significant amendment made to the standard concerns, with reference to the defined-benefit
plans, the obligation to state all the actuarial gains/losses within the sphere of an equity reserve (OCI
reserve), with consequent elimination of the so-called corridor approach.
The Group has applied the transition regulations envisaged by the new standards adjusting the
comparative balances shown in this Annual financial report as if this had always been applied.
The main effects deriving from the application of the new IAS 19 accounting standards on the income
statement and balance sheet results included for comparative purposes in this Annual financial report
are as follows:
 since the corridor approach is not applicable, all the actuarial gains and losses are recognised
directly under shareholders’ equity, in a specific reserve (OCI). Furthermore, actuarial gains and
losses have been recognised under shareholders’ equity not recorded as at 31 December 2012
(in accordance with the afore-mentioned method), with consequent adjustment (restatement) of
the liability for employees benefits and provision of the specific shareholders’ equity reserve
(OCI) in the balance sheet as at 31 December 2012;
 since the deferral of the accounting registration of the past service cost in the income statement
is no longer permitted, the portion not recognised as at 31 December 2012 (in accordance with
the afore-mentioned method), has been recorded to increase the liabilities for employee benefits
and the specific reserve (OCI).
Furthermore, it is hereby disclosed that the impacts on the consolidated income statement and on the
balance sheet as at 31 December 2011 are negligible and have only been indicated in the Statement
of changes in shareholders’ equity (5.5) of this Report.