Tiscali 2013 Annual Report Download - page 133

Annual financial report as at 31 December 2013
Date
File Name
Status
Page
-
Annual Report as at 31
December 2013
133
recoverable amount of an individual asset, the Company estimates the recoverable amount of the
Cash Generating Unit (CGU) to which the asset belongs. The recoverable amount is the higher
between the ‘fair value’ less sales costs and its utilisation value. When assessing the utilisation value,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments on the value of money and the risks specific to the asset.
If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its book
value, the latter is written down to its recoverable amount. The relevant impairment is booked to the
income statement under write-downs. If the reasons for impairment are considered to no longer apply
in the current year, the book value of the asset (or cash-generating unit) is increased to the revised
estimate of its recoverable amount, but not beyond the net book value that would have been
determined had no impairment been recognised for the asset in previous years. An impairment
reversal is booked to the income statement.
Other financial assets
Other financial assets are valued, consistently with IAS 39 provisions for financial assets ‘available for
sale’, at fair value or alternatively at cost whenever fair value cannot be reliably calculated. Gains and
losses from changes in fair value are directly booked to equity until the security is disposed of or is
impaired, at which time the cumulative gain or loss previously booked to equity is included in the
income statement for the period. The original value is reinstated in the following periods if the reasons
for the write-down are considered to no longer apply.
Foreign currency transactions
Transactions in foreign currency are recorded at the exchange rate in force at the time of the
transaction
Monetary assets and liabilities stated in foreign currency are converted at the exchange rate in force at
the financial statement reference date. Exchange rate differences generated by the discharge of
currency items or by their conversion at rates other than those at their initial recording in the year or at
the end of the previous financial year are booked to the income statement.
Loans and receivables
Tiscali S.p.A.’s loans are stated under the “other non current financial assets”, ‘loans to customers”,
“other loans and sundry current assets” and “other current financial assets” items and are valued, if
they have a fixed maturity, at amortised cost, using the effective interest rate method. When financial
assets have no fixed expiry, they are estimated at the acquisition cost. Estimates are regularly carried
out with the aim of making sure whether there is objective evidence that a financial asset or a group of
assets have been subject to impairment. If there is objective evidence, the impairment must be
recorded as a cost in the income statement for the period.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, on-demand and short-term deposits, in the latter
case with an original maturity envisaged of no more than three months.
Payables and financial liabilities
Tiscali S.p.A.’s payables and financial liabilities are stated under the “payables to banks and other
financial institutions”, “other non-current liabilities and “payables to suppliers” items and are recorded
at face value. Financial payables are initially stated at cost, equating to the fair value of the amount
received, net of related charges. Subsequently, these payables are stated at amortised cost using the