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<strong>IT</strong> HOLDING S.p.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br />
FOR THE YEAR ENDED DECEMBER 31, 2003<br />
1. Activities of the Group<br />
<strong>IT</strong> HOLDING S.p.A., is one of the leading players in the luxury goods sector, and controls a group of companies that<br />
design, produce and distribute high-quality products (apparel and accessories, eyewear and perfumes) under owned<br />
brands—Gianfranco Ferré, GF Ferré, Malo, Extè, Try Ultralight—as well as under license agreements—D&G,<br />
Versus, Versace Jeans Couture, Versace Jeans Signature, Just Cavalli, C’N’C Costume National, Romeo Gigli, Desil<br />
Gold Filled, Anna Sui Vision, John Richmond, Vivienne Westwood, Les Copains, and ZeroRH+ (eyewear only).<br />
According to its strategic objectives, the Group rules and sustains the autonomous development of its brands through<br />
an integrated production and distribution system. Its production facilities are located in Italy, while the worldwide<br />
distribution network includes 31 directly operated stores, 66 other mono-brand stores and over 4,000 highly-selected<br />
department and specialty stores. <strong>IT</strong> HOLDING has over 2,000 employees and posted net revenues of<br />
Euro 669 million in 2003. It went public on November 1997 and its shares are traded on the Milan Stock Exchange.<br />
<strong>IT</strong> HOLDING is now a leading player in the luxury industry trough a multi-brand and a multi-product strategy.<br />
2. Significant accounting policies<br />
<strong>IT</strong> HOLDING S.p.A. is a company domiciled in Italy. The consolidated financial statements of the Company for the<br />
year ended December 31, 2003 comprise the Company and its subsidiaries (together referred to as the “Group”).<br />
The financial statements were authorized for issue by the directors on September 28, 2004.<br />
Statement of compliance<br />
The consolidated financial statements have been prepared in accordance with International Financial Reporting<br />
Standards (IFRS) adopted by the International Accounting Standards Boards (IASB).<br />
All standards revised or issued within December 31, 2003, if permitted, have been early adopted in the preparation of<br />
the Group’s consolidated financial statements.<br />
The following standards, revised in 2003, have been adopted before their effective date:<br />
IAS 2, Inventories<br />
IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors<br />
IAS 10, Events after the Balance Sheet Date<br />
IAS 16, Property, Plant and Equipment<br />
IAS 17, Leases<br />
IAS 21, The Effects of Changes in Foreign Exchange Rates<br />
IAS 24, Related Party Disclosures<br />
IAS 27, Consolidated and Separate Financial Statements<br />
IAS 28, Investment in Associates<br />
IAS 31, Investment in Joint Ventures<br />
IAS 32, Financial Instruments: Disclosure and Presentation<br />
IAS 33, Earnings per Share<br />
IAS 39, Financial Instruments: Measurement and Recognition<br />
IAS 40, Investment Property<br />
The company has approved its consolidated financial statements as December 31, 2003 under Italian accounting<br />
principles in May, 6, 2004. A reconciliation between the Company’s consolidated financial statements under Italian<br />
accounting principles and IFRS is provided in note 30.