Tiscali 2014 Annual Report Download - page 76

Annual financial report as at 31 December 2014
Date
File Name
Status
Page
-
Annual Report as at 31
December 2014
76
c) they involve subsidiaries originally acquired exclusively with a view to resale.
The income statement item entitled ‘Results from assets disposed of and/or destined to be disposed
of’ contains the following, in a single item and net of the related tax effects:
the period results achieved by subsidiaries held for sale, including any adjustment of their
net assets to market value (fair value);
the result of the ‘discontinued’ operations, including the result for the period achieved by
subsidiaries up to the date of transfer of control to third parties, together with gains and/or
losses deriving from disposal.
Analysis of the composition of the overall results for the assets concerned is indicated in the
explanatory notes.
The financial effects and effects on equity from the disposals described above are shown in the note
Operating assets sold and/or assets held for sale.
Seasonal nature of revenues
Tiscali’s activities are not affected to a significant extent by events linked to the seasonal nature of
business.
Basis of consolidation
The consolidation area includes the parent company Tiscali S.p.A. and the companies over which
Tiscali – either directly or indirectly – has the power to govern the financial and operating policies or
rather those companies in relation to which it is exposed and has the right to the variable results
deriving from its involvement in said entities which it influences thanks to the power exercised over the
same. In the specific circumstances relating to Tiscali, control involves the majority of voting rights
exercisable at ordinary shareholders’ meetings of the companies included in the consolidation area.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are
de-consolidated from the date on which control ceases.
When preparing the consolidated financial statements, the assets, liabilities, costs and revenues of the
consolidated companies are consolidated line-by-line for the entire amount, allocating the portion of
equity and results for the year due to minority shareholders in the specific balance sheet and income
statement items. The book value of the equity investment in each of the subsidiaries is eliminated
against the corresponding portion of the shareholders’ equity of each of the subsidiaries inclusive of
any adjustments to fair value as of the acquisition date. The positive difference emerging is recorded
as goodwill under intangible assets, as illustrated further on, while the negative difference, if remaining
after an appropriate remeasurement of the adjustments to fair value as of the acquisition date
(negative goodwill), is recorded in the income statement.
All significant intra-company transactions within the Group and the relevant balances are eliminated on
consolidation, as are unrealised gains and losses on intra-group operations.
Minority interests and net profit attributable to minority shareholders are classified separately from the
Group’s equity and results, on the basis of the percentage of net Group assets they possess.
If the losses attributable to the minority shareholders of a consolidated subsidiary are greater than the
shareholders’ equity pertaining to the minority shareholders of the subsidiary, the excess and any
other loss attributable to the minority shareholders is allocated to the shareholders’ equity pertaining to
the shareholders of the parent company unless the minority shareholders are subject to binding
obligations and they are able to make further investments so as to cover the losses.