Tiscali 2008 Annual Report Download - page 127

2) in two statements: one statement which shows the
components of the profit (loss) for the period (separate
income statement Schedule) and a second statement which
starts off from the profit (loss) for the period and shows the
items of the statement of the other components of the total
income statement (Total income statement schedule).
The revised version of IAS 1 comes into force as from 1° January
2009. The adoption of the standard has not had any effect with
regard to the valuation of the financial statement items.
•Amendments to IFRS 2 (Payments based on shares). On 16
December 2008, EC Regulation No. 1261-2008 was
published, acknowledging the changes made to IFRS 2
(
Payments based on shares ) at EU level. The standard
specifies the definition of “accrual conditions” and specifies
the cases when the failure to achieve a condition leads to the
registration of cancellation of the assigned right. The revised
standards comes into force as from 1 January 2009. It is
envisaged that the application of these provisions will not have
any effect on the Company’s individual financial statements.
•Amendments to IAS 32 (Financial instruments: Statement in
the accounts) and to IAS 1 (Financial statement
presentation). On 21 January 2009, EC Regulation No. 53-
2009 was published, acknowledging certain amendments
made to the standards IAS 32 (
Financial instruments:
Statement in the accounts
) and IAS 1 ( Financial statement
presentation
) at EU level. The changes to IAS 32 require, in
the presence of certain conditions, the classification under
shareholders’ equity of certain financial instruments with the
option to sell (puttable instruments) or which oblige the entity
in the event of winding up of the same. The amendments to
IAS 1 require that specific disclosure be provided regarding
said instruments. The new version of IAS 32 and IAS 1 will
come into force as from 1° January 2009. It is not envisaged
that the amendments made will have significant effects on
the Company’s statutory financial statements;
•Amendments to IAS 27 (Consolidated and statutory financial
statements: Cost of equity investments in subsidiaries, in jointly
controlled bodies and in associated companies). The
amendments to IAS 27 introduce the obligation for a body to
record the dividend on a subsidiary, a jointly controlled or body
or an associated company in the income statement of its
statutory financial statements, once the right to receive it has
been ascertained. The new version of IFRS 1 and IAS 27 will
come into force as from 1° January 2009. It is not envisaged
that the amendments made will have significant effects on the
Company’s statutory financial statements
Improvements to the IFRS
On 23 January 2009, EC Regulation No. 70-2009 was published,
acknowledging a number of changes made to the International
Financial Reporting Standards (IFRS) at EU level. The changes
to the standards which come into force as from 1 January 2009
are indicated below:
•IAS 1 (
Financial statement presentation ): the assets and
liabilities relating to derivative instruments not held for
trading purposes and which do not take on the form of
financial guarantee contracts or hedging instruments, must
be classified in the financial statements, making distinction
between current and non-current assets and liabilities in
relation to their maturity;
•IAS 16 (
Properties, plant and machinery ): the amendment
provides a number of specifications on the classification
and accounting treatment to be adopted by an entity
which during its normal business activities as a rule sells
elements of properties, plant and machinery held for lease
to third parties;
•IAS 19 (
Employee benefits ): the amendment introduced,
to be applied perspectively, clarifies the conduct to be
adopted in the event of changes in employee benefits,
defines the methods for recording the cost/income relating
to the past work services and precisely defines the short-
term benefits and the long-term benefits;
•IAS 20 (
Statement of public grants and disclosure on public
assistance
): the amendment, to be applied in perspective,
establishes that the benefit of a public loan at an interest rate
lower than the market one is treated as a public grant;
•IAS 23 (
Financial charges ): the amendment revises the
definition of financial charges;
•IAS 28 (
Equity investments in associated companies ): the
change establishes that, in the event of equity investments
carried at equity, any impairment must not be allocated to
the individual assets (and in particular to any goodwill)
which makes up the book value of the investment, but to
the value of the investee company in its entirety.
Therefore, in the presence of conditions for a subsequent
value writeback, this writeback must be recognized fully;
•IAS 29 (
Accounting in hyperinflationary economies ): these are
changes to a standard not applied by the Group at present;
•IAS 36 (
Asset impairment ): the amendment envisages that
additional information be provided if the fair value less the
sales costs is determined using discounted back cash flow
projections;
•IAS 38 (
Intangible assets ): the amendment envisages the
recognition in the income statement of promotional and
advertising costs. It establishes that in the event a company
incurs charges which have future economic benefits without
recording intangible fixed assets, these must be charged to
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