SAVINO DEL BENE S.p.A.

educed where necessary to take account of permanent reductions in value; in the second case the
own shares are stated at the lower of average weighted cost and market value.
6. Marketable securities are classified as financial fixed assets if they are intended to be held until their
maturity date, or as current financial assets if they are destined either for negotiation or to meet future
finance requirements. Those securities included in financial fixed assets are stated at purchase cost,
adjusted where necessary to the lower of cost and reimbursement value. The securities included in
current assets are stated at the lower of average weighted cost and estimated realisable value,
calculated on the basis of market trends.
7. Receivables are classified as financial fixed assets or as current assets depending upon their nature
and due date. Receivables included as financial fixed assets are stated at nominal value as this
coincides with their estimated realisable value. The receivables included in current assets are shown
net of specific provisions for bad debts considered necessary to bring these receivables into line with
their estimated realisable value.
8. Accruals and prepayments are recorded in order to match costs and revenues in the accounting
period to which they relate. Accrued income and liabilities relate to income and expenses relative to the
period, which manifest themselves in subsequent periods. Deferred income and prepaid expenses
relate to income and expenses incurred during the period but which are relative to future periods.
9. In order to hedge against exchange risks the Company stipulates forward exchange contracts
relative to certain purchase/sale operations. The effects of the variation in exchange rates on the
currencies covered by these forward contracts are recorded at the moment in which the relative costs
and revenues are recorded. The gains and losses realised on these contracts are recorded in the
income statement at the moment in which the relative payment/receipt is realised or when they are
considered unrealisable and the relative receivable and payable is registered.
10. Liquid funds are stated at numerical value.
11.Provisions for risks and charges cover contingencies in relation to known or likely losses, the extent
and timing of which cannot be precisely determined at the period-end. They comprise the following:
provision for pensions, leaving indemnities and similar resolved by the shareholders’ meeting as
recognition of an indemnity to long serving members of the Board of Directors in the event of their
retirement. The criteria adopted for the recording of such provision is in line with the nominal value
resolved by the shareholders;
provision for taxes includes both the reserve accrued to cover the estimated future tax liability relative
to tax disputes and tax assessments not yet finalised and the provision for deferred taxation;
other provisions comprise the following:
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