The financial statements as of 31 December 2010 were drawn up in conformity with the International Accounting Standards (IAS/IFRS) issued by the International Accounting Standards Board (IASB) and approved by the EU and in conformity with the interpretations of the International financial Reporting Interpretations Committee (SIC/IFRIC).
The financial statements are compiled 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.
Arnoldo Mondadori Editore SpA adopted the body of the principles as of 1 January 2005, following the introduction of Eurpean Regulation 1606 of 19 July 2002.
The information required by IFRS 1 concerning the impact of the first adoption of International Accounting Standards was included in the attachment “Transition to IAS/IFRS accounting standards” to the six-month Report for 2005 and to the separate financial statements as of 31 December 2005.
The financial statements as of 31 December 2010 were drawn up in conformity with the accounting standards used for preparing the IAS/IFRS consolidated financial statements as of 31 December 2010, taking into account the amendments and new principles that came into force as of 1 January 2010, which are referred to in note 3.25.
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 balance sheet;
- in the separate income statement, the analysis of costs is carried out on the basis of the nature of the costs, since the company decided that this method is more representative than an analysis by function;
- the comprehensive income statement contains revenues and costs items that are not recognised among the 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 of Eurs unless specifically indicated.