Annual Report 2010 - Enel.com

Millions of euro
Enel Unión
Fenosa
Renovables RusEnergoSbyt Nuclenor Atacama Tejo
at December 31, 2010
Percentage consolidation 50.0% 49.5% 50.0% 50.0% 38.9%
Non-current assets 437 59 81 298 214
Current assets 57 47 61 120 58
Assets held for sale 355 - - - -
Non-current liabilities 34 3 62 18 179
Current liabilities 323 37 19 162 28
Liabilities held for sale 328 - - - -
Revenues 103 1,098 72 341 63
Costs 70 1,009 81 284 53
Where an interest is divested and as a result the Group no
longer exercises joint control, any capital gain (or loss) on
the sale and the effects of the remeasurement to fair value
of the residual interest as at the sale date shall be recognized
through profit or loss.
Consolidation procedures
The financial statements of subsidiaries used to prepare
the consolidated financial statements were prepared at
December 31, 2010 in accordance with the accounting
policies adopted by the Parent Company.
All intercompany balances and transactions, including
any unrealized profits or losses on transactions within the
Group, are eliminated, net of the theoretical tax effect.
Unrealized profits and losses with associates and joint ventures
are eliminated for the part attributable to the Group.
In both cases, unrealized losses are eliminated except
when representative of impairment.
Translation of foreign currency items
Transactions in currencies other than the functional currency
are recognized in these financial statements at the
exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities denominated in a foreign
currency other than the functional currency are later adjusted
using the balance sheet exchange rate.
Non-monetary assets and liabilities in foreign currency
stated at historic cost are translated using the exchange
rate prevailing on the date of initial recognition of the
transaction. Non-monetary assets and liabilities in foreign
currency stated at fair value are translated using the exchange
rate prevailing on the date when that value was
determined.
Any exchange rate differences are recognized through the
income statement.
Translation of financial statements
denominated in a foreign currency
For the purposes of the consolidated financial statements,
all profits/losses, assets and liabilities are stated in euro,
which is the functional currency of the Parent Company,
Enel SpA.
In order to prepare the consolidated financial statements,
the financial statements of consolidated companies in
functional currencies other than the currency of the Parent
Company are translated into euro by applying the relevant
period-end exchange rate to the assets and liabilities, including
goodwill and consolidation adjustments, and the
average exchange rate for the period, which approximates
the exchange rates prevailing at the date of the respective
transactions, to the income statement items.
Any resulting exchange rate gains or losses are recognized
as a separate component of equity in a special reserve. The
gains and losses are recognized in the income statement
on the disposal of the subsidiary.
Business combinations
At first-time adoption of the IFRS-EU, the Group elected
to not apply IFRS 3 (Business Combinations) retrospectively
to acquisitions carried out prior to January 1, 2004.
Accordingly, the goodwill in respect of acquisitions preceding
the IFRS-EU transition date is carried at the value
reported in the last consolidated financial statements prepared
on the basis of the previous accounting standards
(for the year ended December 31, 2003).
Business combinations initiated before January 1, 2010
157