Separate Financial Statements 2007 - Indesit

Separate Financial Statements as of 31 December 2007
constructive obligation to cover any losses that exceed the carrying amounts of investments, the
related liability is recognised by recording a provision for risks and charges.
The original value is reinstated in subsequent years if the reasons for such impairment cease to
apply.
Dividends are recognised as financial income from investments when the right to collect them
is established, which generally coincides with the shareholders' resolution.
Subsidiaries
Subsidiaries are entities over which Indesit Company S.p.A. exercises control by virtue of the
power to govern, directly or indirectly, their financial and operating policies and to obtain
benefits from their activities. In general, companies in which Indesit Company S.p.A. holds
more than 50% of the voting rights, considering any potential voting rights that may be
exercised at the time, are deemed to be subsidiaries.
Associates
Associates are those entities over which Indesit Company S.p.A. exercises significant influence,
but does not control their financial and operating policies or obtain benefits from their
activities. In general, companies in which Indesit Company S.p.A. holds directly or indirectly
between 20% and 50% of the share capital or voting rights, considering any potential voting
rights that may be exercised or converted, are deemed to be associates.
Other companies
Investments in other companies generally comprise those in which less than 20% of share
capital or voting rights is held.
Trade receivables
Trade receivables, generally due within one year, are stated at the fair value of the initial
consideration, increased by the related transaction costs. Subsequently, they are stated at
amortised cost, adjusted to reflect any impairment losses represented by the difference between
carrying amount and the estimated future cash flows. If the impairment loss decreases in a later
period, the loss previously recorded is partly or fully reversed and the carrying amount of the
receivable is restored to an amount that does not exceed the amortised cost that would have
been reported had the impairment loss not been recognised.
Trade receivables sold with or without recourse for which the conditions established in IAS 39
for the derecognition of financial assets do not apply continue to be reported in the balance
sheet, while receivables sold without recourse which satisfy all the conditions of IAS 39 for the
derecognition of financial assets are eliminated from the financial statements at the time of
disposal.
Other current and non-current financial assets
Held-to-maturity securities are initially measured at cost, increased by the transaction costs
incurred to acquire these financial assets. Subsequently, they are measured at amortised cost
using the effective interest method, net of any impairment loss.
Financial assets held for trading are classified as current assets and measured at fair value, with
recognition of any gains or losses in the income statement.
Securities and other financial assets classified as available for sale are stated at their fair value.
Gains and losses deriving from fair-value measurement are recognised directly in equity, except
for impairment losses and exchange rate losses which are charged to the income statement. The
deferred gains and losses recognised in equity are released to the income statement at the time
of sale.
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