Annual Report 2012 - Indesit

Consolidated financial statements at 31 December 2012 – Notes
Current and deferred tax assets and liabilities are offset when due to the same tax authority, if the
periods of reversal are the same and a legal right of offset exists.
Deferred tax liabilities are recognized in relation to the distributable profits of subsidiaries, if there is an
intention to distribute such profits.
Non-current assets
held for sale
and discontinued
operations
Earnings per share
4.2 Amendments
and revised
accounting
standards applied
for the first time
by the Group
Assets held for sale are measured at the lower of their carrying value at the time their sale was
decided or their fair value, net of estimated selling costs. All costs, income and write-downs, if any, are
recognised in the income statement and reported separately.
Operating activities that represent a separate major line of business or geographical area of operations
are classified separately in the income statement and the statement of financial position at the time of
disposal, or when they meet the conditions for classification as assets held for sale.
Basic earnings per share is calculated with reference to the profit for the year of the Group and the
weighted average number of shares in Indesit Company S.p.A. outstanding during the year. Treasury
shares are excluded from this calculation. Diluted earnings per share is determined by adjusting the
basic earnings per share to take account of the theoretical conversion of all potential shares, being all
financial instruments that are potentially convertible into ordinary shares, with a diluting effect. The
Group’s stock option plans represent a category of potential instruments with a diluting effect.
IAS 12 - Income taxes
The amendment introduced a presumption that deferred tax on investment property measured at fair
value in accordance with IAS 40 should be determined taking into account that the carrying amount
will be recovered through sale. A consequence of this amendment, SIC-21 - Income taxes - Recovery of
revalued non-depreciable asset, will no longer apply. The amendment must be applied retrospectively
from 1 January 2012. It should be noted that this case is not regulated by the amendment in the Group.
The relevant accounting standards and related amendments are listed below.
4.3 Amendments
and
interpretations
applicable from
1 January 2013
onwards
IAS 1 - Presentation of Financial Statements
The amendments to IAS 1 are intended to clarify the presentation of those captions representing other
components of comprehensive income. This will help users of the accounts to distinguish between the
individual captions that subsequently may, or may not, be reclassified to the income statement.
The standard, which will be applied from 1 January 2013, will have no effect on the results of the Group
or on consolidated equity.
IAS 19 - Employee Benefits
The amended standard requires the company to determine the present value of its defined benefit
obligations and the fair value of plan assets, and to recognize in the statement of financial position the
net liability for defined benefits.
The amended standard eliminates the opportunity to apply the corridor method, which is currently
used by the Group.
The standard also requires the discount rate on net payables to be applied to defined benefits (assets),
in order to calculate the net interest expense (income). In this way, the standard eliminates the use of
an expected yield on plan assets.
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