Tiscali 2013 Annual Report Download - page 136

Annual financial report as at 31 December 2013
Date
File Name
Status
Page
-
Annual Report as at 31
December 2013
136
assumptions contained therein are reached. Some of these variables are beyond the control of the
Directors and the Group management and especially with regards to developments in the
telecommunications market and achieving the growth objectives set in an extremely competitive
market.
Accounting estimates and relevant assumptions
Provisions for risks and charges
Provisions for risks and charges relating to potential legal and tax liabilities are established following
estimates performed by Directors on the basis of judgements developed by the Group legal and tax
advisors, concerning the charges that are reasonably deemed to be incurred in order to settle the
obligation. If in relation to the final result of such judgements, the Group is called upon to fulfil an
obligation for a sum other than that estimated, the related effects are reflected in the income
statement.
Equity investments
Impairment testing, with particular regard to equity investments, is performed annually as indicated
previously under “Impairment of assets”. The ability of each unit (investment) to produce cash flows
sufficient to recover the value recorded in the financial statements is determined on the basis of
forecast economic and financial data of the company concerned or any subsidiaries. The development
of such data, as well as the determination of an appropriate discount rate, requires a significant use of
estimates
Fair value calculation
Depending on the instrument or financial statements item to be estimated, the directors identify the
most suitable method, by taking into consideration objective market data as much as possible. In
absence of market values, that is, quotations, estimating techniques are used, with reference to the
ones which are most commonly used.
Accounting standards, amendments and interpretations effective from 1 January 2013
The international accounting standards, the changes to the existing standards and the interpretations,
relevant for the Group, adopted for the first time as from 1 January 2013, are presented below:
Amendments to IAS 1 - Presentation in the financial statements of the items of the other
components of the statement of comprehensive income
The amendment to the standard lays down that, in the section of the other components of the
statement of comprehensive income (OCI), a distinction must be made between the elements which in
the future will be reclassified in the income statement (so-called “recycling”) and those which will not
be reclassified in the income statement. The application, on a retroactive basis, of this amendment has
not had any significant impacts on these financial statements; The comparative information presented
has been consistently re-stated.
IAS 19 – Employee benefits
It replaced the version of IAS 19 applied up until the drafting of the 2012 financial statements. The
most significant amendment made to the standard concerns, with reference to the defined-benefit