Sisal Annual Report 2011 - Permira

Explanatory Notes to the ConsolidatedFinancial Statements as of December 31, 2011Structure and content of the Consolidated FinancialStatementsSisal Holding Istituto di Pagamento S.p.A. (SHIP S.p.A.) is a limited liability stockcompany established under the law of the Republic of Italy; at the 2011 year-endthe Company had two main activities. The first is represented by the supply ofcollection and payment services, performed under appropriate authorization issuedby the Bank of Italy, to third party and subsidiary commercial partners; thesecond is represented by the ownership of a controlling interest in Sisal S.p.A. acompany which operates directly and indirectly through subsidiary companies inItaly in the gaming industry, principally on the basis of concessions for wagers inpools, horse racing and sports bets and legal gaming using AWP gaming machines(Amusement With Prize gaming machines) and in the marketing of telephone andtelevision content cards and refills using a network of more than 42,000 outletsand about 200 betting agencies distributed throughout Italy and by the ownershipof a controlling interest in Sisal Bingo S.p.A. a company which operates a bingohall in the city of Naples. Management and strategic services are also renderedto the main subsidiaries subject to the direction and coordination activities of theCompany.The company’s registered office is at Via Tocqueville 13, Milan.These consolidated financial statements, comprising the statement of financialposition, statement of comprehensive income, statement of changes in equity,statement of cash flows and explanatory notes have been prepared from the accountingrecords in conformity with International Financial Reporting Standards(IFRS) adopted by the European Union.In this context, IFRS includes all the International Financial Reporting Standards,all the International Accounting Standards (IAS) and all the interpretations of theInternational Financial Reporting Interpretations Committee (IFRIC), previouslyknown as the Standing Interpretations Committee (SIC) in force at the date ofpreparation of these financial statements and published at that date in the relevantE.U. regulations.The preparation of financial statements according to IFRS may require the use ofestimates and specific valuations and the reasonable judgement of managementin the application of accounting policies. The matters which present higher levelsof complexity and/or greater reliance on assumptions and estimates are detailed inthe paragraph “Use of estimates”.The financial statements which follow include all the additional information considerednecessary even if not required by specific legislation. Valuations have beenmade on a prudent basis and assuming continuity as a going concern, respectingthe criteria and the limits established by law absent any grounds for deviation fromthem, and applying the accruals concept.50 SISAL ANNUAL REPORT 2011