Tiscali 2014 Annual Report Download - page 83

Annual financial report as at 31 December 2014
Date
File Name
Status
Page
-
Annual Report as at 31
December 2014
83
Payables and financial liabilities
The Group’s payables and financial liabilities are stated in the items “bonds”, “payables to banks and
other lenders”, “payables for finance leases”, “other non-current liabilities”, “payables to suppliers”, and
include trade payables, payables to third parties, financial payables, inclusive of payables for loans
received for advances on the factoring of receivables and for financial lease transactions.
Trade payables and other payables are stated 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.
Reduction in value of financial assets
For each period the financial statements refer to (annual or half-year), appraisals are made to check
whether objective evidence exists that a financial asset or group of assets has suffered impairment. If
there is objective evidence, the impairment is recorded in the income statement for financial assets
valued at cost or at amortized cost, while for “financial assets available for sale”, the matters already
illustrated above should be referred to.
Derivative financial instruments
The Group does not use derivative instruments.
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).
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
At present, there are no remuneration schemes involving interests in the share capital