Tiscali 2014 Annual Report Download - page 137

Annual financial report as at 31 December 2014
Date
File Name
Status
Page
-
Annual Report as at 31
December 2014
137
 the ability to refinance the last instalment of the debt as per the Restructuring Agreements
falling due in 2017;
as well as the achievement of the envisaged growth objectives, on the basis of the matters indicated
above, believe that the positive conclusion of the Group restructuring and recapitalisation process is
reasonable, so as to be able to proceed with the implementation of the 2015-2018 Plan, thereby
permitting over the long-term the achievement of a balanced equity, financial and economic situation.
In conclusion, the Directors - analysing the aspects already achieved within the sphere of the process
aimed at permitting the Group to achieve a situation of economic, equity and financial balance over
the long-term, acknowledge that as of the current date, and as already indicated in the financial
statements relating to 2013, uncertainties remain relating to events or circumstances which could lead
to significant doubts as to the Group’s ability to continue operating on the basis of the assumption of a
going-concern. However, after making the necessary checks and after assessing the uncertainties
found in light of the factors described above, taking into account the matters envisaged by the
Restructuring Agreements with regard to the Group recapitalisation and debt restructuring transaction,
they have the reasonable expectation that it is possible to achieve a financial structure for the Group in
line with the expected cash flows and that the Group has adequate resources to continue operations
in the near future and therefore have adopted the going-concern assumption when preparing these
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. It
must be noted 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 2014 statutory financial statements represent the separate financial statements of the Parent
Company Tiscali S.p.A. and have been prepared in observance of the International Accounting
Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) as approved by
the European Union, as well as the instructions issued by way of implementation of Article 9 of Italian
Legislative Decree No. 38/2005. The IFRS are understood to be 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 areas of the financial
statements which, under the circumstances, presuppose the adoption of applicative assumptions and
those more fully characterized by estimates made, are described in the note Critical decisions in
applying accounting standards and in the use of estimates.
Financial statement formats
The consolidated financial statements are composed of accounting statements (Income Statement,
statement of financial position, Statement of changes in consolidated shareholders’ equity, and Cash
Flow Statement), with explanatory notes. The Income Statement was drawn up in line with the
minimum contents fixed by IAS 1 – Presentation of Financial Statements – with costs assignment by
nature; the statement of financial position was drawn up by following the scheme pointing out the