Tiscali 2008 Annual Report Download - page 125

development of such forecast data, as well as the determination of
an appropriate discount rate, requires a significant use of
estimates. Note that also the ability to achieve the new 2009/2013
Business Plan and, therefore the forecasts and cash flows on the
basis of which the impairment test has been proposed, is
subordinate to the occurrence of the conditions described in the
section
Assessment of the business as a going-concern and
business outlook and prospects
on page 156.
Fair value calculation
Depending on the instrument or financial statements item to
be estimated, the directors identify the most suitable method,
by taking into consideration objective market data as much as
possible. In the absence of market values, in other words
quotations, estimating techniques are used, with reference to
those which are most commonly used.
Accounting standards, amendments and interpretations not yet
applicable or not adopted in advance
As required by section 28 of IAS 8 (
Accounting standards, changes
in accounting estimates and errors
), the IFRS in force as from 1
January 2008 are indicated hereunder and briefly illustrated:
•IFRIC 11 (IFRS 2 – Transactions involving own and Group
shares). On 1 June 2007, EC Regulation No. 611-2007 was
published, acknowledging interpretative document IFRIC 11
(IFRS 2 of the Group) at EU level. This interpretation also
confirms that the payment plans based on shares via which
the Company receives services (for example, from
employees) in exchange for own shares, must be recorded
as capital instruments, irrespective of the fact that the entity
chooses to purchase, or is obliged to purchase, these
instruments representative of capital from a third party so
as to meet obligations vis-à-vis its employees. The
application of this interpretation has not had any effect on
the statutory financial statements at 31 December 2008.
•IFRIC 14 (IAS 19 – The limit relating to an asset serving a
defined-benefits plan, the minimum contribution forecasts
and their interaction). As of 16 December 2008, EC
Regulation No. 1263-2008 was published, acknowledging
interpretative document IFRIC 14 (IAS 19 - The limit relating
to an asset serving a defined-benefits plan, the minimum
contribution forecasts and their interaction) at EU level. This
interpretation provides the general guidelines on how to
determine the limit established by IAS 19 for the recognition
of an asset serving a defined-benefit plan and provides
indications regarding the accounting effects deriving from
the existence of a minimum coverage clause of the plan.
This interpretation is not applied by the Group at present.
•Amendments to IAS 39 (Financial instruments: statement and
valuation) and to IFRS 7 (Financial instruments:
supplementary information). On 15 October 2008, EC
Regulation No. 1004-2008 was published, acknowledging a
number of amendments to IAS 39 (Financial instruments:
statement and valuation) and to IFRS 7 (Financial
instruments: supplementary information) which permits,
under particular circumstances, the reclassification of certain
financial assets outside the categories “financial assets at fair
value through the income statement” and “financial assets
available for sale”. The changes to IFRS 7 introduced new
disclosure requirements in relation to the reclassifications
permitted by the amended IAS 39. These changes did not
have any effect on the statutory financial statements at 31
December 2008 since the Tiscali Group has not made any of
the permitted reclassifications.
New standards and Interpretations acknowledged by the EU but
not yet in force
As required by section 30 of IAS 8 (Accounting standards,
changes in accounting estimates and errors ) the IFRS in force
as from 1 January 2009 or subsequently are indicated hereunder
and briefly illustrated:
•Amendments to IAS 23 (Financial charges) On 10 December
2008, EC Regulation No. 1260-2008 was published,
acknowledging the amendments made to IAS 23 (
Financial
charges
) at EU level. The main amendment made to IAS 23
concerns the elimination of the option present in the previous
version of the standard which envisaged, for financial
charges, the possibility of registration in the income
statement in the period they are incurred instead of their
capitalization (
permitted treatment ). Therefore, in the revised
version of IAS 23, financial charges which are directly
attributable to the acquisition, construction or production of
an asset which requires a significant period of time before
being ready for its envisaged use or sale (so-called qualifying
assets), must be capitalized as part of the cost of said asset.
The new version of IAS 23 comes into force as from 1
January 2009.
•Amendments to IAS 1 (
Financial statement presentation ).
On 17 December 2008, EC Regulation No. 1274-2008 was
published, acknowledging the amendments made to IAS 1
(
Financial statement presentation ) at EU level. The main
changes introduced envisage: the presentation in the
statement of changes in shareholders’ equity of all the
changes deriving from transactions with shareholders; and
the statement of the other changes in shareholders’ equity
(other than those with the shareholders) as follows:
1) in a single Total income statement schedule, which shows
the revenues, income, costs and charges recorded
directly in the income statement, the profit (loss) for the
period, as well as the analysis of the income and costs
recorded directly under shareholders’ equity (Other
components of the total income statement); or
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