Tiscali 2014 Annual Report Download - page 80

Annual financial report as at 31 December 2014
Date
File Name
Status
Page
-
Annual Report as at 31
December 2014
80
as equity under the Translation reserve. This reserve is booked to the income statement as income or
expense in the period in which disposal of the foreign subsidiary is completed.
The exchange differences emerging from intra-group receivable/payable transactions of a financial
nature are recorded in the shareholders’ equity special conversion reserve.
The main exchange rates used for translation of the 2014 and 2013 financial statements for foreign
companies into Euro were:
31 December 2014
31 December 2013
average
final
average
final
GB pound
0.78830
0.77890
0.83639
0.83370
Other intangible assets
Computer software – Development costs
Acquired computer software licenses are capitalised and included among intangible assets at
purchase cost and are amortised on a straight-line basis over their estimated useful lives.
Internally-generated intangible assets arising from costs supported for the development of applications
software under Group control and directly associated with the production of services, in particular with
regard to ‘technological platforms’ for access and management of the Tiscali network, are recognised
if:
the following general conditions indicated by IAS 38 are observed for the capitalization of
the intangible assets: (a) the asset created can be identified; (b) it is likely that the asset
created will generate future economic benefits; (c) the development cost of the asset can
be reliably gauged;
the Group can demonstrate the technical possibility of completing the intangible asset so as
to make it available for use or for sale, its intention to complete said asset so as to use or
sell it, the ways in which it will generate probable future economic benefits, the availability
of technical, financial or other resources for completing its development and its ability to
reliably assess the cost attributable to the asset during its development.
During the development period, the asset is reviewed annually for the purpose of revealing any
impairment losses. Subsequent to initial statement, the development costs are valued at the
decreased cost of the amortisation and any other accumulated loss. Amortisation of the asset
commences when the development has been completed and the asset is available for use. The cost is
amortised with reference to the period when it is expected that the related project will generate
revenues for the Group.
Costs associated with the development and the ordinary maintenance of software not meeting the
above mentioned requirements, and with research costs, are charged in full to the income statement in
the period in which they are incurred.
Broadband service activation costs
Acquisition and activation costs for customers were amortised over a period of 36 months.
IRU