Tiscali 2014 Annual Report Download - page 139

Annual financial report as at 31 December 2014
Date
File Name
Status
Page
-
Annual Report as at 31
December 2014
139
impaired, at which time the cumulative gain or loss previously booked to equity is included in the
income statement for the period. The original value is reinstated in the following periods if the reasons
for the write-down are considered to no longer apply.
Foreign currency transactions
Transactions in foreign currency are recorded at the exchange rate in force at the time of the
transaction
Monetary assets and liabilities stated in foreign currency are converted at the exchange rate in force at
the financial statement reference date. Exchange rate differences generated by the discharge of
currency items or by their conversion at rates other than those at their initial recording in the year or at
the end of the previous financial year are booked to the income statement.
Loans and receivables
Tiscali S.p.A.’s loans are stated under the “other non current financial assets”, ‘loans to customers”,
“other loans and sundry current assets” and “other current financial assets” items and are valued, if
they have a fixed maturity, at amortised cost, using the effective interest rate method. When financial
assets have no fixed expiry, they are estimated at the acquisition cost. Estimates are regularly carried
out with the aim of making sure whether there is objective evidence that a financial asset or a group of
assets have been subject to impairment. If there is objective evidence, the impairment must be
recorded as a cost in the income statement for the period.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, on-demand and short-term deposits, in the latter
case with an original maturity envisaged of no more than three months.
Payables and financial liabilities
Tiscali S.p.A.’s payables and financial liabilities are stated under the “payables to banks and other
financial institutions”, “other non-current liabilities and “payables to suppliers” items and are recorded
at face value. Financial payables are initially stated at cost, equating to the fair value of the amount
received, net of related charges. Subsequently, these payables are stated at amortised cost using the
effective interest rate method, calculated considering the issue costs and any other premium or
discount envisaged on settlement.
Liabilities for pension obligations and staff severance indemnities
Defined benefit schemes (as classified by IAS 19), in particular the Staff Severance indemnities
relating to employees of the parent company and the subsidiaries with registered offices in Italy, are
based on valuations performed at the end of each financial year by independent actuaries. The liability
recognised in the statement of financial position is the current value of the obligation payable on
retirement and accrued by employees at the statement of financial position date. It should be specified
that no assets are held in support of the above scheme.
As from 1 January 2007, the 2007 Finance Bill and the related implementing decrees introduced
significant amendments to the regulation of staff severance indemnities (TFR), including the worker’s
choice regarding the allocation of their accruing TFR to supplementary welfare funds or to the
“Treasury Fund” managed by INPS (national insurance institute for social security).