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Statutory financial statements at December 31, 2010
The statement of financial position is prepared according to the distinction between current and non-current assets
and liabilities and the statement of cash flows is presented using the indirect method.
The most significant items are disclosed in a specific note in which details related to the composition and changes
compared to the previous year are provided.
In connection with the requirements of the Consob resolution No. 15519 of July 27, 2006 as to the format of the financial
statements, specific supplementary income statement and balance sheet formats have been added for related
party transactions so as not to compromise an overall reading of the statements.
Tangible fixed assets
Tangible fixed assets are stated at cost, net of accumulated depreciation and impairment losses.
Goods made up of components, of significant value, that have different useful lives are considered separately when
determining depreciation.
In compliance to IAS 36 – Impairment of assets, the carrying value is immediately remeasured to the recoverable
value, if lower.
Depreciation is charged so as to write off the cost or valuation of assets, over their estimated useful lives, using the
straight-line method, on the following bases:
Buildings 3%
Plant and machinery 30% - 50%
Hardware 40%
Other 24% - 50%
Ordinary maintenance costs are fully expensed as incurred. Incremental maintenance costs are allocated to the asset
to which they refer and depreciated over their residual useful lives.
Improvement expenditures on rented property are allocated to the related assets and depreciated over the shorter
between the duration of the rent contract or the residual useful lives of the relevant assets.
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales
proceeds and the carrying amount of the asset and is recognized in income.
Goodwill
Goodwill is an intangible asset with an indefinite life, deriving from business combinations recognized using the purchase
method, and is recorded to reflect the positive difference between purchase cost and the Company’s interest at
the time of acquisition, after having recognized all assets, liabilities and identifiable contingent liabilities attributable
to both the Company and third parties at their fair value.
Goodwill is not amortized, but is tested for impairment annually or more frequently if events or changes in circumstances
indicate that it might be impaired. After initial recognition, goodwill is measured at cost less any accumulated
impairment losses.
Impairment losses are recognized immediately as expenses that cannot be recovered in the future.
Goodwill deriving from acquisitions made prior to the transition date to IFRS are maintained at amounts recognized
under Italian GAAP at the time of application of such standards and are subject to impairment test at such date.
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