Annual Report 2010 - Enel.com

its exchange rate exposure to the same foreign
operation;
- the hedging instrument may be held by any entity in
the group (apart from that being hedged);
- in the event of the disposal of the foreign operation,
the value of the translation reserve connected with
the hedging instrument reclassified to profit or loss in
the consolidated financial statements shall be equal
to the value of the gain/loss on the effective portion
of the hedging instrument.
The interpretation was not applicable to the Group.
> “IFRIC 17 - Distributions of non-cash assets to owners”.
The interpretation clarifies matters relating to the distribution
of non-cash dividends to owners. In particular:
- dividends shall be recognized as soon as they are authorized;
- the company shall measure dividends at the fair vale
of the net assets to be distributed;
- the company shall recognize the difference between
the carrying amount of the dividend and its fair value
through profit or loss.
The application of the interpretation on a prospective
basis did not have an impact in the period under review.
> “IFRIC 18 - Transfers of assets from customers”. The interpretation
clarifies the recognition and measurement of
items of property, plant and equipment, or cash to acquire
or construct such assets, received from a customer
to connect the customer to a network or to ensure
access to an ongoing supply of services. In particular,
the interpretation establishes that, where all the conditions
provided for under the international accounting
standards for the initial recognition of an asset are met,
such assets shall be recognized at fair value. As regards
the recognition of the corresponding revenues, where
the agreement only establishes an obligation to connect
the customer to the network, the related revenues
shall be recognized at the time of connection; otherwise,
where the agreement also provides for the supply
of various services, the related revenues shall be recognized
in relation to the supply of services, over the
shorter of the duration of the service agreement and
the useful life of the asset.
The effects of the application of the interpretation are
discussed in note 4 to the consolidated financial statements.
Standards not yet adopted and not yet
applicable
In 2010, the European Commission endorsed the following
new accounting standards and interpretations, which
will be applicable to the Group as from January 1, 2011:
> “Revised IAS 24 - Related party disclosures”, issued in
November 2009: the revised standard allows companies
that are controlled by or under the significant influence
of a government agency to adopt special related-party
disclosure rules allowing summary disclosure
of transactions with the government agency and with
other companies controlled or under the significant influence
of the government agency. The new version of
IAS 24 also amends the definition of related parties for
the purposes of disclosure in the notes to the financial
statements. The new version of the standard will take
effect retrospectively. The Group does not expect the
future application of the new provisions to have a significant
impact.
> “Amendments to IFRIC 14 - Prepayments of a minimum
funding requirement”, issued in November 2009: the
changes clarify the circumstances in which a company
that prepays a minimum funding requirement for an
employee benefit plan can recognize such payments as
an asset. The Group does not expect the future application
of the new provisions to have an impact.
> “IFRIC 19 - Extinguishing financial liabilities with equity
instruments”, issued in November 2009: the interpretation
clarifies the accounting treatment that a debtor
must apply in the case of liability being extinguished
through the issue of equity instruments to the creditor.
In particular, the equity instruments issued represent
the consideration for extinguishing the liability
and must be measured at fair value as of the date of
extinguishment. Any difference between the carrying
amount of the extinguished liabilities and the initial
value of the equity instruments shall be recognized
through profit or loss. The interpretation will apply retrospectively.
The Group does not expect the future application
of the new provisions to have an impact.
The following amendment, while endorsed in 2009, were
not yet applicable as of January 1, 2010:
> “Amendment to IAS 32 - Financial instrument: Presentation”.
The amendment specifies that rights, options or
warrants that entitle the holder to purchase a specific
number of equity instruments of the entity issuing such
rights for a specified amount of any currency shall be
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