Tiscali 2014 Annual Report Download - page 74

Annual financial report as at 31 December 2014
Date
File Name
Status
Page
-
Annual Report as at 31
December 2014
74
Basis of preparation
The 2014 consolidated financial statements were drawn up by following both the International
Accounting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and
ratified by the European Union, and the measures issued in conformity with Article 9 of Italian
Legislative Decree No. 38/2005. IFRS also include 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”.
In accordance with applicable legal rules and provisions, the financial statements were drawn up on a
consolidated basis and were audited by Reconta Ernst & Young S.p.A..
Financial statement formats
The methods for presentation of the consolidated financial statements as at 31 December 2014 in
accordance with IAS 1 – “Presentation of Financial Statements” envisages:
- The statement of financial position: according to IFRS, assets and liabilities are to be posted
as current and non-current or, alternatively, according to the order of their liquidity. The Group
chose current and non-current classification with indication, in two separate items, of the
“Assets sold/held for sale” and “Liabilities related to assets disposed of/held for sale”.
- Statement of comprehensive income: IFRS require that this includes all economic effects for
the period, regardless of whether these were posted to the income statement or shareholders'
equity, and a classification of items based on their nature or destination, in addition to
separating the economic results of operating assets from the net result of “Assets sold/held for
sale”. The Group decided to use two schedules.
 An income statement schedule that reports only revenues and costs classified by
nature;
 A statement of comprehensive income that reports charges and income posted
directly under shareholders’ equity net of tax effects.
- The amendment to IAS 1, in force as from 1 January 2013 lays down that, in the section of the
other comprehensive income components (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.
- Cash Flow Statement: IAS 7 prescribes that the cash flow statement should report cash flow
classified between assets for operations, investment and financing and posting separately the
total of the cash flows deriving from "Assets sold/held for sale". Cash flow deriving from
operating assets can be posted according to the direct method or using the indirect method.
The Group decided to use the indirect method.
- With reference to Consob resolution No. 15519 of 27 July 2006 with regard to financial
statement formats, it should be mentioned that specific sections were included to show
significant relationships with associated parties, as well as specific notes in order to show,
where existing, one-off significant transactions during regular operations.