185000000 IT Holding Finance SA

IT HOLDING S.p.A. Notes to the consolidated financial statements for the year ended December 31, 2003
Amortized cost
IFRS define that for financial instruments that are carried at amortized cost, such as loans and receivables, transaction
costs should be included in the calculation of amortized cost using the effective interest method.
The effects of the adoption of IAS 39 are as follows:
Shareholders' Group net result Movements in
equity
Shareholders'
equity
F- 86
Shareholders'
equity
Group net
result
Movements in
Shareholders'
equity
Shareholders'
equity
(In thousands of Euros) 12/31/2001 2002 2002 12/31/2002 2003 2003 12/31/2003
Interest rate derivatives (10) (41) (167) (218) 34 (184)
Currency derivatives - (532) (532) (119) (651)
Recognition of Securitization Transactions (413) (15) (428) 226 (202)
Interest-bearing loans and borrowing (229) 385 156 3,020 3,176
Total (652) (203) (167) (1,022) 3,280 (119) 2,139
(i) Deferred taxes
This difference represents the net of deferred tax on the differences between Italian principles and IFRS. In addition
deferred tax assets related to certainly Group companies have been accounted for under IFRS as it is probably that
future taxable profit will be available while under Italian principles such deferred tax assets have not been accounted
for as permitted.
(j) Treasury Stock (Own Shares)
Under Italian Accounting Principles, treasury stock (issued shares repurchased by the issuer) is classified on the
balance sheet as an asset and stated at cost, and is classified in the statement of cash flows as an investing activity. The
cost of acquired treasury stock is treated as an appropriation of retained earnings.
Under IFRS, the cost of acquired treasury stock is presented on the balance sheet as a reduction of shareholders’
equity and is classified as a financing activity in the statement of cash flows.
Other
Extraordinary Items
Under Italian Accounting Principles, extraordinary items generally include items of a non-recurring-nature. Certain
recurring items are also reported as extraordinary items under Italian Accounting Principles, such as gains and losses
on disposal of certain fixed assets and investments, adjustments of prior year accruals to actual amounts realized and
other matters.
Under the revised version of IAS 1, Presentation of Financial Statements, effective for annual periods beginning on or
after January 1, 2005 (earlier application is encouraged), extraordinary items cannot be disclosed into the financial
statements or in the notes. Under the prior version of IFRS, extraordinary items were defined as income or expenses
that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and
therefore are not expected to recur frequently or regularly. Virtually all items of income and expense included in the
determination of net profit an loss are considered to arise in the course of the ordinary activities of the enterprise and
therefore, only on rare occasions does an event or transactions give rise to an extraordinary item under IFRS.
Under the prior version of IFRS, restructuring costs generally were not considered as extraordinary items. Under
Italian Accounting Principles such cost have to be classified as extraordinary.