Tiscali 2014 Annual Report Download - page 140

Annual financial report as at 31 December 2014
Date
File Name
Status
Page
-
Annual Report as at 31
December 2014
140
Therefore, the obligation vis-à-vis INPS and the contribution to the supplementary pension schemes
takes on the form, as per IAS 19, of “Defined contribution schemes”, while the portions recorded in the
staff severance indemnity (TFR) remain “Defined benefit schemes”.
Furthermore, the law changes taking place starting from 2007 implied a new calculation of actuarial
assumptions, and of the consequent methods used to calculate staff severance indemnities, whose
effects were directly booked to the income statement.
As from 1 January 2013 with retrospective efficacy, the Company adopted the new version of the
accounting standard IAS 19 “employee benefits”.
Remuneration schemes involving interests in the share capital
The Group has assigned certain members of senior management and employees additional benefits
via plans for interests in the share capital (stock option plans). These plans expired on 3 May 2012.
The cost, represented by the fair value of the stock options as of the date of allocation was recorded,
for accounting purposes in accordance with IFRS 2- Share-based payment in the income statement
with a matching balance directly under shareholders’ equity.
Provisions for risks and charges
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.
Treasury shares
Treasury shares are booked to reduce the shareholders’ equity.
Revenue recognition
Revenues are recognised to the extent that it is probable that financial profits will flow to Tiscali S.p.A.
and their amount can be reasonably estimated; they are represented net of discounts, allowances and
returns.
Revenues for the provision of services are stated in the income statement with reference to the stage
of completion of the service and only when the result of the service can be reliably estimated.
Financial income and charges
Interest received and paid is recognised using the effective interest rate method.
Taxes
Income tax expense for the year includes the tax currently payable and deferred tax.
The tax currently payable is based on taxable income for the year. Taxable income differs from the
result reported in the income statement because it excludes items of income or expense that are
taxable or deductible in other years and it also excludes items that are never taxable or deductible.
Liability for current tax is calculated using tax rates applicable at the statement of financial position
date.