Tiscali 2013 Annual Report Download - page 66

Annual financial report as at 31 December 2013
Date
File Name
Status
Page
-
Annual Report as at 31
December 2013
66
- The balance sheet: according to IFRS, assets and liabilities are to be posted as current and
non-current or, alternatively, according to the order of their liquidity. The Group chose current
and non-current classification with indication, in two separate items, of the “Assets sold/held
for sale” and “Liabilities related to assets disposed of/held for sale”;
- Statement of comprehensive income: IFRS require that this includes all economic effects for
the period, regardless of whether these were posted to the income statement or shareholders'
equity, and a classification of items based on their nature or destination, in addition to
separating the economic results of operating assets from the net result of “Assets disposed
of/held for sale”. The Group decided to use two schedules.
 An income statement schedule that reports only revenues and costs classified by
nature;
 A statement of comprehensive income that reports charges and income posted
directly under shareholders’ equity net of tax effects.
- The amendment to IAS 1, in force as from 1 January 2013 lays down that, in the section of the
other comprehensive income components (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.
- Cash Flow Statement: IAS 7 prescribes that the cash flow statement should report cash flow
classified between assets for operations, investment and financing and posting separately the
total of the cash flows deriving from "Assets disposed of/held for sale". Cash flow deriving
from operating assets can be posted according to the direct method or using the indirect
method. The Group decided to use the indirect method. With reference to Consob resolution
No. 15519 of 27 July 2006 with regard to financial statement formats, it should be mentioned
that specific sections were included to show significant relationships with associated parties,
as well as specific items in the income statement in order to show, where existing, one-off
significant transactions during regular operations.
All figures shown in the statements and explanatory notes, unless otherwise specified, are in
thousands of Euro.
Segment reporting
Under Regulation (EC) No. 1358/2007 dated 21 November 2007, the European Commission approved
the introduction of IFRS 8 “Operating Segments” to replace IAS 14 “Segment Reporting”. IFRS 8 lays
down the information to provide in the financial statements concerning the operating segments where
the company operates.
Operating segment means the unit of an entity:
 that undertakes business activities that generate revenues and costs (including revenues and
costs related to transactions with other units of the same entity);
 whose operating results are regularly reviewed by upper level management in order to make
decisions on the resources to allocate to the segment and assess results;
 who has separate financial statements.
Unlike the provisions of IAS 14, this standard essentially requires one to determine and report the
results of operating segments according to the "management approach", i.e., according to methods
used by management for internal reporting to assess performance and allocate resources to the
various segments.