Reply SpA

Income statement
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Annexed tables
Note 22 - Trade receivables
Trade receivables at December 31, 2010 amounted to 118,780,312 Euros and are all payable within 12 months.
Detail is as follows:
(in Euros) 31/12/2010 31/12/2009 Change
Third party trade receivables 96,595,318 83,130,612 13,464,706
Credit notes to be issued (295,904) (4,130) (291,774)
Allowance for doubtful accounts (373,356) (140,522) (232,834)
Third party trade receivables 95,926,058 82,985,960 12,940,098
Receivables from subsidiaries 22,448,068 32,628,863 (10,180,795)
Receivables from Parent Company 406,186 483,666 (77,480)
Trade receivables from subsidiaries and Parent Company 22,854,254 33,112,529 (10,258,275)
Total trade receivables 118,780,312 116,098,489 2,681,823
Reply carries out fronting activities with primary clients in capacity of sole manager of the ISO 9001 procedures.
This activity is reflected in Third Party Receivables which had an increase of 12,940,098 Euros.
Receivables from subsidiaries are related to services that the Parent Company Reply S.p.A. carries out in favor of the
subsidiary companies at normal market conditions.
Trade receivables are all due within 12 months and do not include significant overdue balances.
In 2010 a specific provision was made for doubtful accounts and amounted to 232,834 Euros.
The carrying amount of Trade receivables is in line with its fair value.
Note 23 - Other receivables and current assets
Detail is as follows:
(in Euros) 31/12/2010 31/12/2009 Change
Tax receivables 1,725,297 2,406,834 (681,537)
Other receivables from subsidiary companies 25,676,000 10,460,000 15,216,000
Other receivables 56,935 30,552 26,383
Accrued income and prepaid expenses 3,553,366 1,517,105 2,036,261
Total 31,011,598 14,414,491 16,597,107
Tax receivables mainly refer to advance payment on IRES (1,547,851 Euros advance payments on
IRAP and VAT receivables and withholding tax receivables.
Other receivables from subsidiary companies refer to IRES receivables which are calculated on taxable income, and
transferred by the Italian subsidiaries under national fiscal consolidation.
Accrued income and prepaid expenses refer to prepaid expenses arising from the execution of services, lease contracts,
insurance contracts and other utility expenses, which are accounted for on an accrual basis.
The carrying value of Other receivables and current assets is deemed to be in line with its fair value.
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