The Benetton Group Annual Report 1996

Writedowns
The "Writedown of current receivables and of liquid funds", Lire 78,304 million, reflects a prudent
provision to the allowance for doubtful accounts. This is discussed in more detail in the note on trade
accounts receivable.
Other operating costs
This caption consists of the following:
Emoluments to Directors and Statutory
Auditors
1995 1996
15,241 14,205
Indirect taxation 16,042 14,295
Losses on disposal of fixed assets 2,400 3,336
Losses on receivables 6,033 7,805
Other general expenses 11,634 9,521
Total 51,350 49,162
Indirect taxation includes capital taxes amounting to Lire 7,370 million in 1996 and Lire 7,689 million in
1995.
Emoluments earned during the year by the Directors and Statutory Auditors of the parent company
total around Lire 7,400 million and Lire 366 million, respectively.
27. FINANCIAL INCOME AND EXPENSE
Income from equity investments
This balance, Lire 6,223 million (Lire 11,891 million in 1995), includes Lire 5,948 million (Lire 10,349 million in
1995) of interest income on tax credits deriving from dividends distributed by consolidated subsidiaries.
Other financial income
This caption consists of the following:
From receivables held as financial fixed assets:
1995 1996
– assets leased to third parties 142 124
– other receivables held as financial fixed assets 458 457
Total 600 581
From securities held as financial fixed assets, not
representing equity investments
From securities included among current
assets not representing equity investments
Financial income other than the above:
17,141
27,663
15,821
24,635
– interest income from subsidiary companies 586 227
– interest income from associated companies - 6
– interest income from trade and other receivables 5,961 3,751
– interest income from banks 21,979 27,005
– miscellaneous financial income 59,900 71,285
– exchange gains and income from currency
456,901 402,794
management
Total 545,327 505,068
Total 590,731 546,105