Tiscali 2008 Annual Report Download - page 68

are classified separately from the Group’s equity and results, on
the basis of the percentage of net Group assets they possess.
If the losses attributable to the minority shareholders of a
consolidated subsidiary are greater than the shareholders’
equity pertaining to the minority shareholders of the subsidiary,
the excess and any other loss attributable to the minority
shareholders is allocated to the shareholders’ equity pertaining
to the shareholders of the parent company unless the minority
shareholders are subject to binding obligations and they are
able to make further investments so as to cover the losses. If,
subsequently, the subsidiary reports profits, the profits
attributable to the minority shareholders are attributable to the
shareholders’ equity pertaining to the parent company’s
shareholders until the portion of the losses of the minority
shareholders, previously covered by the parent company’s
shareholders, have been recovered.
Equity investments in associated companies, as well as those
subject to joint control, are reflected in the consolidated financial
statements among non-current assets and carried at equity,
as envisaged, respectively, by IAS 28 (
Equity investments in
associated companies
) and by IAS 31 ( Equity investments in
Joint Ventures
).
Associated companies are those over which the Group is able
to exercise significant influence, but not control or joint control,
via participation in decisions on the financial and operating
policies of the investee.
Under the equity method, these equity investments are initially
booked to the consolidated balance sheet at acquisition cost,
as adjusted for post-acquisition changes in the shareholders’
equity of the associated company, net of any impairment in
the value of individual equity investments. Any excess of the
acquisition cost over the Group’s share of the net fair value of
potentially identifiable assets, liabilities and contingent liabilities
of the associated company as of the date of acquisition is
recognised as goodwill. The goodwill is included in the book
value of the investment and is subject to impairment testing.
Any excess of the Group’s share of the net fair value of the
identifiable assets, liabilities and contingent liabilities over the
cost of acquisition of the associated company at the date of
acquisition is booked to the income statement in the period of
acquisition. The consolidated financial statements include the
Group’s share in the results of the associated companies as
well as those jointly controlled as from the date when significant
influence commenced until the moment this influence ceases
to exist. If the Group’s share of the losses of the associated
company exceed the book value of the equity investment, steps
are taken to write off the value of the equity investment and
the portion of the additional losses is only recorded if the Group
is obliged to be responsible for the same.
Unrealized profits and losses deriving from transactions with
associated companies or those jointly controlled, are eliminated
against the value of the Group’s investment in said companies.
With regard to transactions which concern interests in
companies which are already subsidiaries, in the absence of
a specific Standard or interpretation on the subject and referring
to the provisions contained in IAS 8 “Accounting standards,
changes in accounting estimates and errors”, the Group has
applied the following accounting approaches, identifying two
types of transactions:
•acquisitions/disposals of interests in companies which are
already subsidiaries: in the event of acquisitions the Group
pays the minority shareholders a cash amount or a
consideration in new shares, thereby determining the
simultaneous elimination of the related minority interests
and the recording of Goodwill equating to the difference
between the purchase cost of the interests and the book
value of the assets and liabilities acquired proportionally;
in the event of disposal, the difference between the transfer
value and the corresponding book value in the consolidated
financial statements is recorded in the income statement
(so-called Parent company extension method);
•infraGroup transfer of interests in subsidiary companies
which lead to a change in the shareholding: the interests
transferred remained recorded at historic cost and the gain
or loss emerging from the transfer is reversed in full. The
shareholders’ equity pertaining to minority shareholders who
do not directly participate in the transaction, is adjusted to
reflect the change with a corresponding opposite effect on
the shareholders’ equity pertaining to the shareholders of
the Parent Company without the recording of any goodwill
and without what is more producing any effect on the result
and the total shareholders’ equity.
Consolidation area
The companies consolidated line-by-line are indicated in the
note “List of subsidiaries included in the consolidation area”
on page 104. Changes in the consolidation area during 2008,
when compared with the consolidated financial statements at
31 December 2007, are illustrated as follows:
During November 2008, the disposal of Quinary S.p.A.’s
activities took place.
On 3 February 2009, Tiscali announced that it had received a
binding offer from BS Private Equity for the purchase of the
assets held by Tiscali International Network BV, a subsidiary
of Tiscali International BV. The offer included the purchase of
the net assets of TiNet Bv, as well as the equity investments
of the companies in the entire TiNet Group (TiNet spa, TiNet
Ltd, TiNet Gmbh, TiNet Inc, TiNet Hong Kong)
In order to provide comprehensive information, please note
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CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES