to download Telecom Italia Annual Report 2011 - Company Reporting

In the absence of a Standard or an Interpretation that specifically applies to a particular transaction,
management carefully considers subjective valuation techniques and uses its judgment as to the
accounting methods to adopt with a view to providing financial statements which faithfully represent the
financial position, the results of operations and the cash flows of the Group, which reflect the economic
substance of the transactions, are neutral, prepared on a prudent basis and complete in all material
respects.
New Standards and Interpretations approved by the EU in force from
January 1, 2011
As required by IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors), the following
new principles and interpretations (amendments and improvements included), in force from
January 1, 2011, govern situations that do not exist within the Group at the date of
these consolidated financial statements, but may affect the accounting for future transactions or
agreements:
• Amendments to IAS 32 (Classification of Rights Issues);
• Amendments to IAS 24 (Related Party Disclosures);
• Amendments to IFRIC 14 (Prepayments of a Minimum Funding Requirement);
• IFRIC 19 (Extinguishing Financial Liabilities with Equity Instruments);
• Improvements to IFRSs – issued in 2010.
New Standards and Interpretations approved by the EU not yet in force
During 2011, certain amendments to IFRS 7 (Disclosures—Transfers of Financial Assets) were approved
by the European Union. These amendments must be adopted from January 1, 2012. It is expected that
they will not have a significant effect on the consolidated financial statements of the Group.
Telecom Italia Group
Consolidated Financial Statements Note 2 – Accounting policies 174