Annual Report 2012 - Indesit

Consolidated financial statements at 31 December 2012 – Notes
The consolidated financial statements at 31 December 2012 have also been prepared in accordance
with Consob’s instructions regarding the format of financial statements, in application of art. 9 of
Legislative Decree 38/2005 and other Consob regulations and instructions concerning financial
statements.
The consolidated financial statements at 31 December 2012 are presented on a comparative basis
and comprise the consolidated statement of financial position, the consolidated income statement,
the consolidated statement of comprehensive income, the consolidated cash flow statement, the
statement of changes in consolidated equity and these explanatory notes.
The income statement format adopted by the Group classifies costs by function. This is deemed
to be more meaningful than a classification by type of expenditure, since it reflects the format
of internal reporting and is consistent with international practice in the household appliances
sector.
The consolidated statement of comprehensive income comprises the various components forming the
results for the year, together with the income and charges not deriving from transactions with owners
that were recognised directly in equity. The transactions carried out with owners are presented in the
consolidated statement of changes in equity, together with comprehensive income.
The presentation of the statement of financial position distinguishes between current and non-current
assets and liabilities.
The cash flow statement is presented using the indirect method.
In compliance with Consob requirements 4 , the separate income statement prepared by Indesit
Company S.p.A. reports expenditure by nature. This format is deemed to be appropriate given the
dual role of the Parent, both as an operating company that supplies goods and services to other
Group companies, and as the company holding for the equity investments of the Group. In order to
ensure consistency for the users of the financial statements, an attachment to the separate financial
statements of the Parent classifies its income statement by function, in the format and using the criteria
adopted for the preparation of the consolidated income statement.
Accounting policies
4.1 Basis of
preparation
and accounting
policies adopted
Basis of preparation
The currency of presentation of the consolidated financial statements is the euro, and financial
statement balances are stated in millions of euro (except where stated otherwise). The consolidated
financial statements are prepared on an historical cost basis, except for derivative financial instruments,
financial assets held for sale and financial instruments and assets classified as available for sale, which
are stated at their fair value, as well under the going concern assumption.
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.
4. Consob Resolution no. 15519 dated 27 July 2006.
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