Separate Financial Statements 2007 - Indesit

More documents

Recommendations

Info

Separate Financial Statements as of 31 December 2007 Other provisions Provisions are recorded for other future charges deriving from court cases, disputes and other obligations when the requirements for the recognition of a liability are met, being in the accounting period in which such charges become known and measurable reliably. Income Revenue Revenue from the sale of goods is recognised when the significant risks and rewards of economic have been transferred to the buyer. Revenue from the sale of goods is generally recognised when they are handed over to the transport firms which, under the terms of current contracts, marks the time when the above risks and rewards are transferred. Revenue is not recognised if its recoverability is considered to be uncertain. Revenue is stated net of discounts, allowances, rebates and returns, and does not include the proceeds from the disposal of raw materials and scrap. Revenue from services is recorded in the income statement based on the stage of completion at the balance sheet date, determined with reference to the work performed or, alternatively, to the percentage of completion with respect to the total. Dividends Collectible dividends are recognised as revenue when they are declared at the related meeting. Grants Grants from the government or other bodies, recognised in the form of direct payments or tax benefits, are recognised as deferred income in the balance sheet, among other liabilities, at the time their collection becomes reasonably certain and when compliance with all the requirements to obtain them is assured. They are recognised as revenue in the income statement on a systematic basis in order to match the accounting recognition of the costs for which such grants were made. Grants related to income are taken to the income statement at the time the requirements for their recognition are met, and when it becomes certain that they will be recognised in order to offset the eligible costs. Other income Other income includes all forms of non-financial revenue not covered above and is recognised on the basis described in relation to revenue from goods sold and services rendered. This includes the capitalisation of internally-incurred development costs, where appropriate, and any internal construction costs. Expenses The costs of purchasing goods and services are recognised when the amounts concerned can be determined reliably. The costs of purchasing goods are recognised on delivery which, under the terms of current contracts, marks the time when the related risks and rewards are transferred. The costs of services are recognised on an accruals basis with reference to the time they are received. Materials, services, leases and rentals This caption comprises the cost of purchasing raw materials, components, outsourced direct and indirect processing, and production, commercial, distribution and administrative services. 29
Separate Financial Statements as of 31 December 2007 Payroll costs Payroll costs comprise remuneration, social security charges, charges in relation to defined benefit and/or defined contribution plans - principally represented by the provision for severance indemnities - benefits, and the cost of leaving and redundancy incentives. Depreciation, amortization and impairment loss This caption comprises the charges for the depreciation and amortization of property, plant and equipment and intangible assets over their useful lives, and the related impairment losses determined on the basis described in the Impairment of assets paragraph. Provisions and other operating expenses This caption comprises the provisions for specific risks and doubtful accounts, as well as such other expenses as indirect taxation, general expenses, losses of the disposal of property, plant and equipment and donations. Financial income Financial income includes the interest income earned on all forms of loan, cash discounts allowed by suppliers for early payment with respect to the agreed terms of sale, financial income from cash and cash equivalents, dividends, exchange gains and the economic effects recorded in the income statement of measuring the transactions that hedge interest-rate and exchange-rate risks. Financial expenses Financial expenses include the interest charged on all forms of borrowing, cash discounts allowed to customers for early payment with respect to the agreed terms of sale, exchange losses and the economic effects recorded in the income statement of measuring the transactions that hedge interest-rate and exchange-rate risks. Income tax Income tax is recognised in the income statement, except for that relating to transactions recognised directly in equity, in which case it is also recognised in equity. Income tax includes current and deferred tax. Current taxes are based on an estimate of the amount that Indesit Company S.p.A. expects to pay by applying the tax rate in force at the balance sheet date. Deferred tax is provided for using the liability method, considering all the temporary differences that emerge between the tax value of assets and liabilities and their carrying amount in the Company's separate financial statements. Deferred tax is not recognised in respect of goodwill or those assets and liabilities that do not affect taxable income. Income taxes deriving from the distribution of dividends are recognised at the time the related payable is recognised. The recoverability of deferred tax assets is verified at each balance sheet date and any amounts for which recovery is no longer likely are charged to the income statement. Deferred taxation is recognised using the tax rates expected to be in force in the tax periods when the related temporary differences are forecast to reverse or expire. Deferred tax assets are recognised to the extent it is probable that future taxable income will be available to recover such taxes. 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 taxation is recognised 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 30
Page 1 and 2: Separated Financial Statements as o
Page 3 and 4: Separate Financial Statements as of
Page 29: Separate Financial Statements as of
Page 81 and 82:
Separate Financial Statements as of
Page 83 and 84:
Separate Financial Statements as of
show all

Separate Financial Statements 2007 - Indesit

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?