Tiscali 2013 Annual Report Download - page 65

Annual financial report as at 31 December 2013
Date
File Name
Status
Page
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Annual Report as at 31
December 2013
65
on the basis of the matters indicated above, reasonably believe that the afore-mentioned Group debt
restructuring transactions can be finalised, so as to be able to proceed with the implementation of the
Group financial and business plan, thereby permitting over the long-term the achievement of a
balanced equity, financial and economic situation.
In conclusion, when analysing what has already been achieved within the sphere of the process aimed
at enabling the Group to obtain long-term equity, financial and economic equilibrium, the Directors
acknowledge that, as already indicated in the financial statements relating to 2012, at present
uncertainties still remain, with regards to events and circumstances that may raise considerable doubt
on the ability of the Group to continue to operate under the going-concern assumption, however, after
making the necessary checks and after assessing the uncertainties found in the light of the factors
described, and having taken into account the afore-mentioned outline consent expressed by all the
financing institutions with regard to the proposed restructuring of the debt as per the GFA, they have
the reasonable expectation that the definition of the transaction can be reached for the rebalancing of
the Group’s financial structures on a consistent basis with the expected cash flows and suitable for
supporting the operating activities laid out in the afore-mentioned financial and business plans and
that the Group has adequate resources to continue operations in the near future and therefore have
adopted the going-concern assumption when preparing the financial statements.
This assessment is naturally the result of a subjective opinion, which has compared - with respect to
the events indicated above - the degree of probability of their occurrence with the opposite situation.
Therefore, obviously it must be emphasised, in as far as it is obvious, that the prognostic opinion
underlying the decision of the board, is liable to be contradicted by the evolution of events. Precisely
because it is aware of the intrinsic limits of its decision, the Board of Directors will constantly monitor
the evolution of the factors taken into consideration (as well as any other additional circumstance
which takes on significance), so as to be able to promptly adopt the necessary measures, also in
terms of recourse to the procedures envisaged by the law for business crisis situations.
Form and content of the accounting statements
Basis of preparation
The 2013 consolidated financial statements were drawn up by following both the International
Accounting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and
ratified by the European Union, and the measures issued in conformity with Article 9 of Italian
Legislative Decree No. 38/2005. IFRS also include 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 financial statement areas
which, under the circumstances, presuppose the adoption of applicative assumptions and those more
greatly characterised by the making of estimates are described in Critical decisions in applying
accounting standards and in the use of estimates.
In accordance with applicable legal rules and provisions, the financial statements were drawn up on a
consolidated basis and were audited by Reconta Ernst & Young S.p.A..
Financial statement formats
The methods for presentation of the consolidated financial statements as at 31 December 2013 were
adapted following the enforcement of IAS 1 – “Presentation of Financial Statements” reviewed in 2007.
This standard lays down new names for the various financial statements schedules, namely: