SAVINO DEL BENE S.p.A.

More documents

Recommendations

Info

- provision for risk of disputes and penalties to cover the losses expected upon the unfavourable outcome of legal action in course; • provision for coverage of subsidiary and associated company losses to cover the losses sustained by subsidiary and associated companies in excess of the book value of the relative equity investment. 12. Employee termination indemnity represents the liability matured towards employees at the balance sheet date, determined in accordance with Italian legislation and labour contracts in force. This reserve results adequate with regard to the liability matured at the period end and is shown net of advances granted to employees. The credit relative to the advance taxation paid on employee termination indemnity in accordance with Law No. 662 of 23rd December 1996 and subsequent amendments, revalued in accordance with this legislation, is recorded under the heading “other receivables" in financial fixed assets. 13. Payables are stated at nominal value. 14. Accruals for income taxes, calculated on the basis of taxable income for the period, are recorded gross of advance payments of tax and taxes withheld from the Company at source in accordance with Law No. 466/1997 and subsequent amendments. Both advance taxation and deferred taxation are recorded in the financial statements where there exists a reasonable certainty of their future recovery. Deferred and advance taxation are calculated on the timing differences between the income shown in the financial statements and the taxable income declared in the Company's tax return on the basis of the tax rates in force in the coming year. The net difference between advance and deferred taxation is recorded in the income statement under the heading "Income tax for the year". The deferred taxation relative to reserves upon which taxation has been postponed has not been recorded as we have a reasonable certainty that these reserves shall not be utilised and therefore shall not be subject to taxation. 15. Dividends are recorded on an accrual basis, and therefore at the moment in which the dividend is declared. Dividends from subsidiary companies are recorded on a “matural” basis, that is during the period in which the relative profits were earned by the subsidiary companies, on the condition that the date of approval of the parent company’s financial statements is later than that of the approval of the subsidiary companies financial statements and of the relative resolutions for the distribution of net income. In accordance with the accruals principle, the relative fiscal effects are recorded in the same period in which the dividend was recorded, even where the dividend is not actually received until the subsequent accounting period; therefore deferred taxation is calculated (relative only to corporation tax –IRPEG), taking account of the relative tax credit, which is recorded as an increase in the value of the dividend. 16. Income and expenses are recorded in accordance with the accrual concept and are shown net of discounts, rebates and bonuses. 17. The memorandum accounts include the following: guarantees given, represented by: 20
- fidejussions granted to third parties in favour of Group companies and third parties against liabilities and other commitments assumed by them, in addition to pledges on the Company's assets. - mortgage guarantees given to third parties against mortgage loans obtained; other memorandum accounts comprised of assets held in leasing, valued at the amount of leasing instalments outstanding plus the purchase option price. 18. Amounts receivable and payable in foreign currencies adhering to the single European currency "Euro" are converted into lire using the fixed Euro exchange rates. Amounts receivable and payable in other foreign currencies are converted into lire using the exchange rates in effect at the transaction date. Eventual exchange differences realised on receipt or payment of these balances are recorded in the income statement. In accordance with the accounting principle (Accounting Principle No. 26) issued by the Italian Institute of Accountants (Consigli Nazionali dei Dottori Commercialisti e Ragionieri), as from the year 2000, current receivables and payables in foreign currencies not adhering to the single European currency "Euro” are converted into lire using the year-end exchange rates; the resulting gains and losses are recorded in the income statement under the headings "financial income" and "financial charges" respectively. Up until the previous year only the unrealised losses were recorded in the financial statements under a specific provision for exchange differences. The effects deriving from the adoption of this new accounting principle are disclosed further on in these explanatory notes. Liquid funds and bank overdrafts in foreign currency are converted into lire using the year-end exchange rates. 21
Page 1 and 2: SAVINO DEL BENE S.p.A. DIRECTORS' R
Page 3 and 4: (-) Labour costs (-) Sundry costs G
Page 5 and 6: geographic area of the customer inv
Page 7 and 8: 30.06.01 % North America 20,220 35.
Page 9 and 10: quality of service to its customers
Page 11 and 12: • Savino Del Bene USA Inc. (New Y
Page 13 and 14: most significant reduction regarded
Page 15 and 16: against Lire 33 million for the per
Page 17 and 18: The parent company's income stateme
Page 19: educed where necessary to take acco
Page 23 and 24: • Additions 145 214 1,349 227 1,9
Page 25 and 26: Receivables due from associated com
Page 27 and 28: Other receivables amount to Lire 9,
Page 29 and 30: The provision for leaving indemniti
Page 31 and 32: Subsidiary companies 31.12.00 30.06
Page 33 and 34: NOTES TO THE INCOME STATEMENT Value
Page 35: The new versions of the accounting

SAVINO DEL BENE S.p.A.

Create successful ePaper yourself

Delete template?

Save as template?