|
HOME | |
CONTACTS | |
JOB | |
FAQ | |
LINK | |
SITE MAP | |
|
  |
 |
  |
 |
 |
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 2005 2004 2003 2002 2001 2000 1999 IAS/IFRS Standards |
 |
 |
|
 |
|
IAS/IFRS Standards
As a consequence of the introduction of European Regulation no. 1606/2002 passed by the European Parliament and the Council of Europe in July 2002, companies governed by a law of a member state whose securities are admitted to trading on a regulated market of any member state of the European Union must prepare their consolidated financial statements for each financial year starting on or after 1 January 2005 in conformity with the international accounting standards (IAS/IFRS) issued by the International Accounting Standards Board (IASB) and adopted by the European Union.
Exercising the option contained in CONSOB resolution 14990 of 14 April 2005, the Mondadori Group elected to begin preparing its quarterly consolidated statements in accordance with international accounting standards from its half year report at 30 June 2005.
In compliance with IFRS 1, information on the quantitative and qualitative effects of the transition to IAS/IFRS as from the half year report at 30 June 2005 is provided below.
The following reclassifications to the balance sheet and income statement prepared in accordance with Italian accounting principles were made:
– long-term trade receivables and payables were reclassified from non-current assets/other non-current liabilities to trade receivables/trade payables;
– financial income referring to instalment sales was reclassified from other (income) expense to financial income (expense).
In particular, the attachments to the notes contain reconciliations between consolidated net equity prepared in accordance with the accounting principles previously used and those prepared in accordance with IAS/IFRS at 1 January 2004, the date of transition, together with reconciliations of consolidated shareholders’ equity and of consolidated net profit prepared in accordance with Italian accounting principles with those prepared in accordance with IAS/IFRS for the year ended 31 December 2004.
The IAS/IFRS balance sheets and the IAS/IFRS income statements have been prepared by making adjustments and reclassifications to the consolidated financial statements prepared in accordance with Italian legal requirements, with the purpose of arriving at financial statements in which the presentation, recognition and measurement criteria of the new standards are respected.
The statements and reconciliations have been prepared solely for the purpose of preparing the first set of complete consolidated financial statements prepared in accordance with IAS/IFRS for the year ended 31 December 2005, and accordingly do not include comparative data or notes that would normally be required in order to present the Mondadori Group’s financial position and results in accordance with IAS/IFRS.
The adjustments have been made on the basis of the IAS/IFRS standards currently effective. The European Commission is at the present time carrying out ratifications, and procedures are also being carried out by other official bodies to adapt or interpret these standards.
The Mondadori Group has appointed Reconta Ernst & Young SpA to perform a full audit of the reconciliations tables at 1 January 2004 and at 31 December 2004.
First-time adoption of international accounting standards (IFRS 1)
As required by IFRS 1, as from 1 January 2004, the date of transition to IFRS/IAS, a consolidated balance sheet has been prepared where:
• assets and liabilities whose recognition is required by IAS/IFRS are recognised;
• items previously classified in one way in the financial statements prepared under the previous accounting principles are classified to satisfy the requirements of IAS/IFRS;
• IAS/IFRS are applied in measuring all recognised assets and liabilities.
The effect of the adoption of the new accounting standards has been recognised in equity, also taking into account the relative tax effect of adjustments for which the appropriate deferred tax assets and liabilities have been recognised.
The preparation of the consolidated balance sheet at 1 January 2004 and the consolidated financial statements for the year ended 31 December 2004 has involved choosing certain options from among those available in IAS/IFRS, as described below.
Optional exemptions utilised by the Mondadori Group
Re-calculating data in accordance with IFRS 3
The Mondadori Group elected not to apply retrospectively the provisions contained in IFRS 3 regarding business combinations; as a result, the previous figures for the purchase of companies, businesses and investments that took place before 1 January 2004, the transition date, have not been amended.
Fair value measurement of investment property and property, plant and machinery and utilisation of this method instead of historical cost in accordance with the provisions of IAS 40 and IAS 16.
The Mondadori Group elected to use fair value to replace historical cost at 1 January 2004 in the measurement of certain assets recognised as investment property and property, plant and equipment that have a carrying value that is significantly different from their current value.
The adjustments made were based on specific appraisals performed by independent, third party experts.
After the initial adjustments, the new value has been considered deemed cost at the transition date and the cost model is then used going forward.
Re-calculating data concerning employee benefits in accordance with IAS 19
The Mondadori Group has elected not to use the corridor method in accounting for actuarial gains and losses in accordance with IAS 19.
Measurement and presentation of compound financial instruments in accordance with IAS 32
The Mondadori Group has elected to apply the provisions of IAS 32 and IAS 39 from 1 January 2005, without providing comparative data for the year ended 31 December 2004.
Cumulated translation differences
Cumulated translation differences at 1 January 2004 recognised under the previous accounting principles have not been recognised for IAS/IFRS and are deemed to be zero at that date. As a result, only those arising after that date are recognised.
Stock options
The Mondadori Group has applied the provisions contained in IFRS 2 to all stock options granted after 7 November 2002.