Tiscali 2013 Annual Report Download - page 80

Annual financial report as at 31 December 2013
Date
File Name
Status
Page
-
Annual Report as at 31
December 2013
80
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.
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 consolidated 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
plans, the obligation to state all the actuarial gains/losses within the sphere of the OCIs, with
consequent elimination of the so-called corridor approach. Furthermore, the new version of the
standard introduces more stringent regulations for the presentation of the data in the financial
statements, separating the cost - for the defined-benefit plans and for the other long-term benefits -
into three components (i.e. service cost, net interest on net assets/liabilities, re-measurement of the
net assets/liabilities); it introduces the calculation of the interest income in replacement of the return
expected on the assets serving a defined-benefit plan; it no longer allows one to defer the accounting
registration in the income statement for the past service cost; it extends the disclosure to be presented
in the financial statements; it introduces more detailed regulations for the recording of the termination
benefit. The effects deriving from the application, on a retroactive basis, of this standard in these
consolidated financial statements are illustrated in the section “Accounting standards”.
Further to the application as from 1 January 2013, with retrospective efficacy, of the new version of the
international accounting standard IAS 19R - Employee benefits, the balance sheet and income
statement items of the consolidated financial statements as at 31 December 2012 inherent to the
recording of benefits falling within the sphere of application of said standard, have been recalculated
and re-stated solely for comparative purposes. The effective of the application of IAS 19R on the items
of the consolidated income statement and balance sheet as of 31 December 2011 is negligible.
For a more detailed analysis of the effects deriving from the retroactive application of this standard,
please see the section “Accounting standards”.