Toto S.p.A. Costruzioni Generali

TOTO SPA COSTRUZIONI GENERALIRevenue recognitionRevenues from work in progress to order are recognised on a percentage of completion basis, as shown inthe work progress reports (SALs) certified by the contracting bodies.Criteria for converting amounts expressed in foreign currencyReceivables and payables originally expressed in foreign currencies, recorded at the exchange rates in forceon the date they arose, are adjusted to current exchange rates on the balance-sheet date.In particular, current assets and liabilities that are not held as fixed assets and non-current financialreceivables are recorded at the spot exchange rate on the balance-sheet date. Gains and losses fromconverting receivables and payables are respectively credited and charged to the Profit and Loss Accountunder item 17 bis Exchange gains and losses.Fixed assets in foreign currency are instead recorded at the exchange rate in force at the time of theirpurchase or at the lower year-end rate only if negative changes have resulted in a permanent impairment ofthe fixed assets.Guarantees, commitments, third party assets and risksGuarantees, commitments and third party assets are indicated in the Memorandum Accounts at theircontractual value.Risks for which a liability is only possible are described in the explanatory notes, but no amount is allocatedto the provision for risks in accordance with the applicable accounting principles. Remote risks were nottaken into accountEmployment dataThe average company headcount, broken down by category, underwent the following changes compared tothe previous year.Personnel 31/12/2011 31/12/2010 ChangeManagers 18 18White collar 159 159Manual workers 450 450Other 9 9636 636The employment contract applied for white collar and manual workers is the Collective National EmploymentContract for employees of construction firms and similar businesses of 18 June 2004, updated by theagreement of 19 April 2010. The agreement applied for executives is the Collective National EmploymentContract for executives of companies that product goods and services of 24 November 2004, updated by theagreement of 25 November 2009.The breakdown of the balance sheet and profit and loss account items and the comments on them asprovided for by art. 2427 C.C. are provided below.To make the data a bit clearer and more understandable, the balances from the transfer of the constructionunit to the company as of 01/11/2011 have been stated as necessary.Notes to the financial statements as of 31/12/2011 Page 34