Tiscali 2001 Annual Report Download - page 79

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71
BALANCE WRITE-DOWNS BALANCE
COMPANY 12.31.2000 INCREASES EXTRAORD. AMORT. AMORTIZATION 12.31.2001
Tiscali SpA (*) 679,355 200,942 (211,161) (179,671) 489,465
Liberty Surf Group SA 428,769 (358,096) (16,234) 54,439
World Online Int. NV 309,513 254,646 (259,969) (166,036) 138,154
Tiscali Deutschland GmbH 6,476 (3,350) (100) 3,026
Tiscali Belgium Holding SA 34,062 (34,062)
Total consolidation difference 1,022,930 890,833 (866,638) (362,041) 685,084
(*) Consolidation difference pertaining to the Parent Company
technological platform for network access and management systems and for IT systems
covering billing and administration. This line item also includes the rights of the affiliate
Nets SA for the purchase of transmission capacity on a multi-year basis.
Among the other intangible assets, the increase regards also improvement of third party
assets.
The column "Write-downs & Extraordinary Amortisations" includes the changes in LSG's
consolidation area in the amount of EUR 83.3mn due to the withdrawal from the
consolidation area - within the Liberty Surf Group - of X-stream network Inc, Ceic sarl,
Liberty Surf Telecom BV, Liberty Surf Telco UK, Liberty Surf media UK, and AXS Inc.
Extraordinary write-downs and amortizations, in the amount of EUR 358mn refer to the
Liberty Surf Group, for EUR 260mn to Tiscali International BV and for EUR 190mn to direct
participations of the Parent Company. Said write-downs of an extraordinary nature were
carried out in the framework of the overall corporate and operational Group restructuring
and on the basis of cautious assessment on the part of its directors, with the aim of
aligning the residual value of consolidation difference with the changed conditions of
sector reference markets. To this end, the valuation elements indicated above were taken
into due account.
As regards participations acquired by means of new share issues, average Tiscali share
quotations in January 2002 and the market value of active underwriters were considered. It
should moreover be noted that as regards operations in Germany and Great Britain,
updated valuation reports were taken as reference.
Composition and changes which took place during the FY covering the line items under
scrutiny are detailed below.
CONSOLIDATION DIFFERENCE
The column "Extraordinary amortizations & write-downs" shows changes in the
consolidation area and the offsetting of items regarding transactions within the Group; as
regards the sub-consolidated Liberty Surf, the whole amount of the consolidation
difference is shown in the increments column since this Group was purchased during the
course of FY 2001.
The consolidation difference resulting from the consolidation of the affiliates on the basis
of the integral method, is amortised over a maximum period of ten years, starting from the
purchase date of the affiliates and according to their sector.
Consolidated Financial Statements