Annual Report 2010 - Enel.com

Following the acquisition, Enel holds 92.06% of Endesa
and exercises full control over the company. As a result,
as from that date, Endesa is consolidated in the Enel
Group on a full, line-by-line basis rather than proportionately,
with separate reporting of the minority interest
of 7.94%;
> disposal, on September 23, 2009, of 51% of SeverEnergia,
a Russian company 100% owned until that date by
Artic Russia, in which Enel and Eni have stakes of 40%
and 60%, respectively. Taking account of the existing
governance mechanisms, which enable Enel to exercise
a significant influence over the company through Artic
Russia, as from that date SeverEnergia has been accounted
for using the equity method rather than being
consolidated on a proportionate basis;
> disposal, on September 30, 2009, by Enel Distribuzione
of 80% of Enel Rete Gas. Following the transaction,
Enel’s stake in Enel Rete Gas fell from 99.88% to
19.8%, with the consequent loss of control. Taking account
of the existing governance mechanisms, which
enable Enel to exercise a significant influence over the
company, as from that date Enel Rete Gas has been accounted
for using the equity method rather than being
consolidated on a line-by-line basis.
2010
> establishment of SE Hydropower, which operates in
the generation of electricity in the Province of Bolzano,
which since June 1, 2010, the Group, despite holding
only 40%, consolidates on a full line-by-line basis owing
to specific shareholders’ agreements concerning
the governance of the company. The fair value of the
assets acquired and liabilities and contingent liabilities
assumed with the operation have been recognized on
a provisional basis pending their definitive determination
pursuant to IFRS 3;
> disposal, on July 1, 2010, by Endesa of 50.01% of Endesa
Hellas, a Greek company operating in the renewables
generation sector;
> disposal, on December 17, 2010, of 80% of Nubia 2000,
a company owning assets (acquired during the year by
Endesa Gas) in the gas transport and distribution industry
in Spain. The sale also includes a 35% stake in Gas
Aragon, which had previously been acquired by Nubia
2000.
74 Enel Annual Report 2010 Report on operations
In the performance figures for 2009, reported here for
comparative purposes, the income or loss (net of the related
tax effect) attributable to Enel Rete Gas is reported
under “discontinued operations” until the date of its deconsolidation,
as well as the loss posted on the disposal of
80% of the company on September 30, 2009. Among other
factors, these results include €136 million in respect of
the adjustment of the value of those assets carried out in
the 1st Quarter of 2009 when the parties reached agreement
on a consensus valuation of the assets and liabilities
involved in the sale, as well as the loss of €73 million on
the disposal.
The changes in the policies used to account for certain assets
in respect of services carried out on a concession basis
(IFRIC 12) and the transfer of assets from customers (IFRIC
18) gave rise to adjustments of the balances for a number
of accounts with respect to those reported in the consolidated
financial statements at December 31, 2009. More
specifically, the retrospective application as from January
1, 2010, of the interpretations set out in IFRIC 12 involved
appropriate reclassifications among balance-sheet
accounts at December 31, 2009 and at January 1, 2009,
while the prospective application as from July 1, 2009, of
the provisions of IFRIC 18 led to the restatement of a number
of balance sheet and income statement accounts at
December 31, 2009.
In addition, the balance sheet figures reported in the 2009
consolidated financial statements have been restated to
take account of the effects of the definitive determination
in the 1st Half of 2010 (within the time limit envisaged
under IFRS 3) of the fair value of the assets acquired and
the liabilities and contingent liabilities assumed with the
acquisition of the 25.01% of Endesa on June 25, 2009. The
main adjustments of the provisional figures reported at
December 31, 2009 of the fair value of the assets acquired
and the liabilities and contingent liabilities assumed are
attributable to the following factors:
> the adjustment of the value of certain items of property,
plant and equipment and intangible assets as a
result of the completion of the measurement of their
fair value;
> the determination, where applicable, of the tax effects
on the above adjustments;
> the allocation, where applicable, of the above adjustments
to minority interests.