Tiscali 2013 Annual Report Download - page 70

Annual financial report as at 31 December 2013
Date
File Name
Status
Page
-
Annual Report as at 31
December 2013
70
Tiscali GmbH (*)
Germany
Tiscali
Deutschland
Gmbh
26
(149,400)
(1,403)
100.0%
Tiscali Business GmbH (*)
Germany
Tiscali
Business
UK Ltd
2,046
(210,999)
(2,082)
100.0%
Tiscali Verwaltungs Gmbh (*)
Germany
Tiscali
Deutschland
Gmbh
25
(23)
(1)
100.0%
Tiscali Holdings UK Ltd (*)
UK
Tiscali
S.p.A.
59
(305,007)
(11,604)
100.0%
World Online International Nv (*)
The Netherlands
Tiscali
S.p.A.
115,519
99.5%
Tiscali International Bv (*)
The Netherlands
World
Online
International
Nv
115,469
280,173
3,314
100.0%
Tiscali International Network B.V (*)
The Netherlands
Tiscali
International
Bv
18
16,395
473
100.0%
Tiscali Business UK Ltd (*)
UK
Tiscali
International
Bv
72
(29)
(7)
100.0%
(*) preliminary figures relating to the financial statements as at 31 December 2013
(**) % Group investment
Business combinations and Goodwill
The acquisition of controlling interests is accounted for using the purchase method, in accordance with
IFRS 3 – (Business combinations). The cost of the acquisition is measured as the aggregate of the fair
values, at the date of the exchange, of assets, liabilities incurred or undertaken concerning the
acquired company, and the financial instruments possibly issued by the Group in exchange for control
of the acquiree, plus any costs directly attributable to the business combination.
The acquiree’s identifiable assets, liabilities and contingent liabilities (including the respective portions
pertaining to minority shareholders) that meet the conditions for recognition under IFRS 3 are
recognised at their fair values as at the acquisition date.
The excess of the cost of the business combination over the Group’s interest in the fair value of the
identifiable assets, liabilities and contingent liabilities recognised represents the goodwill arising on
acquisition that is stated as an asset and initially valued at cost. If, after reassessment, the Group’s
interest in the fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities,
exceeds the cost of the business combination, the excess is booked directly to the income statement.
The interest of minority shareholders in the acquiree is initially stated at the minority’s proportion of the
fair values of the assets, liabilities and contingent liabilities stated.
Following initial statement, goodwill is recorded at cost less any accumulated impairment losses. In
compliance with IFRS 3, goodwill is not amortised, but subject to impairment tests in order to identify
any reductions in value.
Impairment testing on goodwill is compulsorily repeated once a year or more frequently if events or
changes in circumstances indicate a possible impairment, i.e. a loss of value.
The impairment, if any, is identified by means of assessments referring to the ability of each ‘unit’,
identifiable in this case with the subsidiary, to generate cash flows sufficient to recover the goodwill
allocated to the unit. The recoverable amount is the higher between the ‘fair value’ less sales costs
and its utilisation value. The utilization value is determined starting from expected future cash flows
discounted at a rate that reflects the current market estimate of the cost of money, the cost of capital
and the risks specific to the unit. If the estimated recoverable amount of the unit concerned is lower