Tiscali 2001 Annual Report Download - page 73

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65
reasons for the previous loss of value are considered no longer current. The
analytical methods for the charging of depreciation and amortization are explained
separately hereunder in these notes.
c) Revaluations
To date, no revaluations have been performed.
d) Exceptions
No exceptions to the valuation criteria provided by legislation regarding year-end
and consolidated financial statements have been made either in these financial
statements or in the financial statements of the previous financial years.
e) Accounting entries made exclusively in application of tax laws
No accounting entries have been made exclusively in application of tax laws.
The more significant principles and criteria may be summarized as
follows:
f) Intangibile assets
Start-up and expansion costs are entered in the designated line item among assets
and are amortized for a period not exceeding 5 years starting from the financial year
in which said costs were incurred.
Research, development and advertising costs are shown in the designated line item
on the assets side and are amortized for a period of five years starting from the
financial year in which they were incurred, since said costs produce profits over a
number of years.
Industrial property rights and intellectual property rights are recorded at their
acquisition cost and amortized systematically in accordance with the period of use
as established by the contract. At all events, the amortization period will not exceed
5 years from the financial year in which they were incurred.
Licenses, trademarks, patent rights and similar are recorded at their acquisition cost
and amortized systematically in accordance with the period of use established by
the contract. At all events, the amortization period will not exceed 5 years from the
FY in which they were incurred. Intangible assets are posted at their purchase or
internal production value including accessory charges and amortized by fixed
amounts.
Goodwill is posted among assets only if acquired for a valuable consideration,
within the limit of the cost incurred. It is amortized over a period not exceeding the
duration of its use, or, if this cannot be estimated, over a period not exceeding five
years.
Consolidation difference appears in the Consolidated Financial Statements when
accounting values of participations are offset against the corresponding quotas of
Consolidated Financial Statements