Annual Report 2010 - Enel.com

Notes to the financial
statements
1
Form and content of the financial
statements
Enel SpA, which operates in the energy utility sector, has its
registered office in Rome, Italy. The consolidated financial
statements for the period ended December 31, 2010 comprises
the financial statements of the Company, its subsidiaries
and joint ventures (“the Group”) and the Group’s
holdings in associated companies. A list of the subsidiaries,
associated companies and joint ventures included in
the scope of consolidation is reported in the annex.
These financial statements were approved for publication
by the Board on March 14, 2011.
Compliance with IFRS/IAS
The consolidated financial statements for the year ended
December 31, 2010 have been prepared in accordance
with international accounting standards (International
Accounting Standards - IAS and International Financial
Reporting Standards - IFRS) issued by the International
Accounting Standards Board (IASB), the interpretations
of the International Financial Reporting Interpretations
Committee (IFRIC) and the Standing Interpretations Committee
(SIC), recognized in the European Community pursuant
to Regulation (EC) no. 1606/2002 and in effect as of
the close of the year. All of these standards and interpretations
are hereinafter referred to as the “IFRS-EU”. The financial
statements have also been prepared in conformity
with measures issued in implementation of Article 9, paragraph
3, of Legislative Decree 38 of February 28, 2005.
Basis of presentation
The consolidated financial statements consist of the consolidated
income statement, the statement of consolidated
comprehensive income, the consolidated balance
sheet, the statement of changes in consolidated shareholders’
equity and the consolidated statement of cash
flows and the related notes.
The assets and liabilities reported in the consolidated balance
sheet are classified on a “current/non-current basis”,
with separate reporting of assets and liabilities held for
sale. Current assets, which include cash and cash equivalents,
are assets that are intended to be realized, sold or
consumed during the normal operating cycle of the company
or in the twelve months following the balance sheet
date; current liabilities are liabilities that are expected to
be settled during the normal operating cycle of the company
or within the twelve months following the close of
the financial year.
The consolidated income statement is classified on the basis
of the nature of costs, while the indirect method is used
for the cash flow statement.
The consolidated financial statements are presented in
euro, the functional currency of the Parent Company Enel
SpA. All figures are shown in millions of euro unless stated
otherwise.
The financial statements are prepared on a going-concern
basis using the cost method, with the exception of items
that are measured at fair value under IFRS-EU, as specified
in the measurement policies for the individual items.
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