The consolidated financial statements as at 31 December 2010 were drafted in compliance with the International Accounting Standards (IAS/IFRS) issued by the International Accounting Standard Board (IASB) and approved by the EU and in compliance with the International Financial Reporting Interpretations Committee (SIC/IFRIC).
The financial statements were prepared on the understanding that the company will continue to operate in the future. The company has decided that, despite the difficult economic and financial context, there is no significant uncertainty (as defined by IAS 1.25) surrounding its ability to continue operating in the future, partly as a result of the actions taken to adjust to the changing levels in demand and to the industrial and financial flexibility of the company.
The Mondadori Group adopted the body of the principles enforced as of 1 January 2005, following adoption of European Regulation no. 1606 of 19 July 2002.
The consolidated financial statements as at 31 December 2010 were prepared in accordance with the accounting standards used for the preparation of IAS/IFRS consolidated financial statements as at 31 December 2009, taking into consideration any new amendments and standards with effect from 1 January 2010, which are referred to in note 6.26 hereunder.
The financial statements were prepared in the following way:
- current and non-current assets and current and non-current liabilities are shown separately in the consolidated balance sheet;
- in the consolidated income statement, the analysis of costs is carried out on the basis of the nature of the costs, since the Group decided that this method is more representative than an analysis by function;
- the consolidated comprehensive income statement contains revenue and cost items that are not recognised under profit (loss) for the period as required or allowed by the other IAS/IFRS accounting standards;
- the cash flow statement has been prepared using the indirect method.
With reference to the requirements of Consob Resolution 15519 of 27 July 2006 concerning the tables used in financial statements, specific supplementary tables were included to highlight significant business with “Related parties” and “Non-recurring operations”.
The amounts shown in the tables and in the notes are expressed in thousands euros unless specifically indicated.