2009 1st Half Report - Indesit

Half-year report at 30 June 2009
balance sheet and 30 June 2008 for the statement of cash flows). This decision was made to
permit the consistent comparison of data that is significantly affected by the seasonality of
the sector. The income statement presents figures for the first half of 2009 and the first half
of 2008, since the Group has adopted the six-month period for interim reference purposes.
The consolidated income statement is classified with reference to the reasons for which
costs were incurred, the balance sheet distinguishes between current and non-current assets
and liabilities, the statement of cash flows is presented using the indirect method, and the
Statement of Changes in Equity format has been adopted. In addition, as required by the
revised version of IAS 1 – Presentation of financial statements, the Consolidated statement
of comprehensive income is presented for the first time. This statement comprises the
various components forming the results for the period, together with the income and charges
deriving from transactions not carried out with shareholders that were recognised directly in
equity. The transactions carried out with shareholders are presented in the statement of
changes in shareholders' equity, together with the equity transactions reported in the
statement of comprehensive income.
The format adopted for the classification of the consolidated income statement was chosen
to help the market understand more clearly the profitability of the Group; in particular,
performance can be measured better with reference to the profit and cost centeres used for
the allocation of income and expenses. Additionally, this format assures the provision of
precise segment information that is consistent with the way results are normally measured
for management accounting purposes. This approach also ensures greater comparability
with direct competitors and the multinationals operating in related sectors, since classification
of the income statement by function is the format most widely used in international practice.
In addition, the notes provide information on the nature of expenditure and the other
disclosures necessary for the market, investors and all stakeholders.
4. Principal accounting policies
Except as discussed in note 5 below, the accounting policies and consolidation criteria
applied for the preparation of the condensed interim consolidated financial statements are
consistent with those adopted for the consolidated financial statements at 31 December
2008, to which explicit reference is made for further details, and which form an integral part
of these notes.
Basis of preparation
The currency of presentation of the condensed interim consolidated financial statements is
the euro, and the financial statement balances are expressed in millions of euro (except
where stated otherwise). The condensed interim consolidated financial statements are
prepared on an historical cost basis, except for derivative financial instruments, financial
assets held for sale and financial instruments classified as available for sale, which are
measured at their fair value, as applicable to going concerns. Despite the difficult economic
and financial conditions, the Group has determined that there are no significant uncertainties
about business continuity. This confidence takes account of the actions already identified
and, in part, already implemented to adjust to the marked reduction in the level of demand
and preserve the Group's financial strength and solidity. The accounting policies are applied
on a consistent basis by all Group companies. There are no financial assets held to maturity.
Financial transactions are recognised with reference to the trade date. The accounting
policies adopted for the preparation of the condensed interim consolidated financial
statements at 30 June 2009 have also been applied on a consistent basis to all the
comparative financial information.
27