The following is a description of the principles and policies adopted by the company in preparing its IAS/IFRS financial statements as of 31 December 2010.
3.1 Intangible fixed assets
When it is probable that costs will generate future economic benefits, intangible assets include the cost, including accessory charges, of the purchase of assets or resources, without any physical form, used in the production of goods or in the supply of services, to rent to third parties or for administrative purposes, on condition that the cost is quantifiable in a reliable manner and that the goods are clearly identifiable and controlled by the company that owns them.
Any costs incurred after the initial purchase are included in the increase of the cost of intangible assets in direct relation to the extent to which those costs are able to generate future economic benefits.
Internal costs for producing mastheads and for the launch of newspapers, magazines or other journals are recognised in the income statement for the year in question.
Subsequent to initial recognition, intangible assets are stated at cost, net of accumulated amortisation and any accumulated impairment losses.
Intangible assets purchased separately and those purchased as part of business combinations that took place before the adoption of IAS/IFRS are initially booked at cost, while those purchased as part of business combination operations that took place after the adoption of IAS/IFRS are initially recognised at their fair value.
Intangible assets with a finite useful life
The cost of intangible assets with a finite useful life is systematically amortised over the useful life of the asset from the moment the asset is available for use. The amortisation criteria depend on how the company will receive the relative future economic benefits.
The amortisation rates reflecting the useful lives attributed to intangible assets with a finite life are as follows:
| Intangible assets with a finite useful life | Amortisation period |
|---|---|
| Goods under concession or licence | Term of franchise or licence |
| Software | Straight-line over 3 years |
| Patents and rights | Straight line over 3-5 years |
| Other intangible assets | Straight line over 3-5 years |
Intangible assets with a finite useful life are subject to an impairment test every time there is an indication of a possible loss of value. The period and method of amortisation applied are reviewed at the end of each year or more frequently if necessary.
Variations in the expected useful life or in the way future economic benefits linked to intangible assets are expected to be earned by the company are recognised by modifying the period or method of amortisation, and are treated as adjustments to accounting estimates.
Intangible assets with an indefinite useful life
Intangible assets are considered to have an indefinite useful life when, on the basis of a thorough analysis of the relevant factors, there is no foreseeable limit to the length of time the assets may generate income for the company.
The intangible assets identified by the company as having an indefinite useful life are shown in the following table:
| Intangible assets with an indefinite useful life |
|
|---|---|
| Titles |
|
| Trade marks |
|
| Goodwill |
|
Goodwill represents the excess of the cost of a business combination over the share purchased by the company of the fair value of the assets, liabilities and contingent liabilities acquired, as identifiable at the time of purchase. Goodwill and the other intangible assets with an indefinite useful life are not subject to amortisation but to an impairment test of their carrying value. This test concerns the value of the individual assets or of the business unit that generates financial income (cash generating unit) and is carried out whenever it is believed that the value has decreased, and in any case at least once a year.
In cases where goodwill is attributed to a cash generating unit (or to a group of units) whose assets are partially disposed of, the goodwill associated with the asset disposed of is reviewed in order to determine any capital gains or losses resulting from the operation. In these circumstances the goodwill disposed of is measured on the basis of the value of the assets disposed of compared with the asset still included in the cash generating unit in question.
3.2 Property investments
A property investment is stated as an asset when it is held in order to earn income from its rental or to increase its invested capital, on condition that the cost of the asset can be reliably measured and that future economic benefits will flow to the company.
Property investments are stated at cost, which includes the purchase cost and all accessory charges directly connected to the purchase.
Costs which arise after the initial purchase are included in the increase of the cost of the property investment in direct relation to how much those costs are able to generate future economic benefits higher than those originally assessed.
The cost of property investments, except for that part pertaining to the cost of the land, is systematically amortised during the useful life of the asset. The depreciation criteria depend on the how the relative future economic benefits accrue to the company.
The depreciation rates that reflect the useful life attributed to the company’s property investments are as follows:
| Property investments | Depreciation rate |
|---|---|
| Buildings not used in business activities | 3% |
Both the useful life and the depreciation criteria are constantly reviewed and if any significant changes are found in the assumptions previously adopted, the depreciation rate for the period in question and for successive periods is adjusted.
Gains and losses deriving from the disposal of real estate investments are recognised in the income statement in the year the operation takes place.
Investment property is reclassified when there is a change in its use signalled by specific events.
3.3 Property, plant and equipment
Any costs attributable to the purchase of property, plant and equipment are recognised as assets, on condition that the cost of the asset can be reliably calculated and any related future economic benefits will flow to the company.
Assets booked to property, plant and equipment are valued at cost, including any accessory charges, and are stated net of accumulated depreciation and any loss in value.
Costs which arise after the initial purchase are recognised as an increase in cost in direct relation to the extent that these costs are able to improve the performance of the asset.
Assets booked to property, plant and equipment purchased as part of acquisitions and business combinations are initially recognised at their fair value at the time of their purchase and subsequently at cost.
Assets recognised as property, plant and equipment, with the exception of land, are depreciated on a straight line basis during the useful life of the asset from the moment the assets are available for use.
If the assets include more than one significant component and the components have different useful lives, each individual component is depreciated separately.
The depreciation rates reflecting the useful lives attributed to the company’s property, plant and equipment are as follows.
| Property, plant and equipment | Depreciation rate |
|---|---|
| Buildings used in business activities | 3% |
| Plant | 10% - 25% |
| Equipment | 15.5% |
| Machinery | 25% |
| Electronic office equipment | 30% |
| Furniture and fixtures | 12% |
| Motor vehicles and transport vehicles | 20% - 30% |
| Other assets | 20% |
The residual value of assets, useful lives and the depreciation criteria applied, are reviewed on an annual basis and adjusted, if necessary, at the end of every year.
Leasehold improvements are booked to tangible fixed assets and depreciated over the lower of the residual useful life of the tangible fixed asset and the residual term of the lease contract.
3.4 Assets acquired under finance leases
Assets acquired under finance leases, which transfer all the risks and benefits connected with the asset to the company, are booked at their market value or, if lower, at the present value of the minimum lease payments, including the amount to be paid for exercising any purchase option.
Liabilities arising from leasing contracts are recognised as financial liabilities.
These assets are booked under their respective categories in the property, plant and equipment item and depreciated over the lower of the contract term and the useful life of the asset in question.
A lease where the lessor retains substantially all the risks and benefits linked to the property is recognised as an operating lease and the relative costs are recognised in the income statement over the contract term.
3.5 Borrowing costs
The company capitalises financial charges connected with the purchase, construction or production of assets that can be capitalised. If there are no assets that justify the capitalisation, the charges are booked to the income statement in the year in which they are incurred.
3.6 Loss in value of assets (impairment)
The carrying value of intangible assets, investment property and property, plant and machinery is subject to an impairment test whenever it is believed that it may have decreased.
Impairment tests are carried out at least once a year on goodwill, other intangible assets with an indefinite useful life and on other assets that are not available for use, and are performed by comparing the carrying value with whichever is higher between the fair value less the sales cost and the value in use of the asset.
If no binding sales agreement or an active market for an asset exist, the fair value is calculated on the basis of the best information available concerning the amount the company would obtain, at the balance sheet date, from the disposal of an asset in a free transaction between informed and willing parties, after the costs of disposal have been deducted.
The value in use of an asset is determined by calculating the amount of income expected from its use, forecasts of financial income being based on reasonable, plausible assumptions used by the management to estimate a series of economic conditions that hold for the remainder of the life of the asset, giving more importance to external indicators.
The pre-tax discount rate used reflects the current market estimates of the time value of money and the specific risks connected to the asset.
The valuation is carried out either for each individual asset or for the smallest Cash Generating Unit of assets that generate independent cash flows from the use of the assets in question.
If the value calculated by the impairment test is lower than cost, the loss is recognised as a reduction of the asset and as a cost in the income statement.
If during subsequent financial years, when the impairment test is repeated, the reasons for the writedown no longer exist, the value of the asset, excluding goodwill, is reinstated to take into account the new recoverable value, which must not, however, exceed the value that would have been stated had no loss in value been recognised.
3.7 Investments in subsidiaries, joint ventures and associated companies
Subsidiary companies are companies where the company has the power to determine, either directly or indirectly, administrative and management decisions and obtain benefit thereby. It is generally presumed that a company has control of another when it either directly or indirectly holds more than half of the voting rights at ordinary shareholders’ meetings, including potential voting rights deriving from convertible shares.
Joint ventures are companies where the company has joint control, with one or more parties, of the economic activities. Joint control presupposes that strategic, financial and management decisions are taken with the unanimous consent of the parties who exercise control.
Associated companies are companies where the company has a significant influence in determining administrative and management decisions, even though it does not have control. Significant influence is generally presumed to mean that the company holds, either directly or indirectly, at least 20% of the voting rights at ordinary shareholders’ meetings.
Investments in subsidiary companies, joint ventures and associated companies are valued at cost and subsequently adjusted as a consequence of changes in value if, after a suitable impairment test, it is found that the carrying value needs to be adjusted to the effective economic value of the investment. The original cost is restored in subsequent years if the reasons for carrying out the adjustments no longer exist. Adjustments and any reinstatements of value are booked to the income statement.
The risk deriving from any losses that exceed cost are booked to liabilities in the amount that the company is legally or constructively liable for.
3.8 Inventories
Inventories are valued at the lower of cost and net realisable value. Inventory cost includes purchase cost, transformation cost and other costs involved in bringing an item to its current location and condition, without taking financial charges into consideration.
The calculation of cost is based on the weighted average cost of raw and consumable materials and of finished products purchased for resale, while the FIFO method is used for finished products.
The valuation of goods under construction and semi-finished products and work in progress to order is based on the cost of the materials and other costs incurred, taking into account the progress of the production process.
The presumed net value for raw, subsidiary and consumer materials is their replacement cost, while for semi-finished and finished products it is the normal estimated sales price net of, respectively, estimated cost to completion and sales cost.
3.9 Financial assets
Financial assets are initially measured at cost, plus accessory purchase charges representing the fair value of the amount paid. Purchase and sale of financial assets are valued as of the trading date, which is the date the company agreed to purchase the asset in question. After initial measurement, financial assets are valued according to their classification as outlined below:
Financial assets at fair value with changes recognised in the income statement
This category includes financial assets acquired and held for trading in the short term.
Profits and losses deriving from fair value measurement of assets held for trading are booked to the income statement.
Held-to-maturity investments
Financial assets the company intends to hold in its portfolio to maturity and which have fixed or determinable payments with fixed maturity are classified as “held-to-maturity investments”.
Long-term financial investments that are held to their maturity, such as bonds, are valued after the initial valuation using the amortised cost method based on effective interest rates, i.e. the rates that will apply to future payments or returns estimated for the entire life of the financial instrument.
Calculation of amortised cost also considers any discounts or premiums that will be applied over the period of time to maturity.
Financial assets the company decides to keep in its portfolio for an indefinite period do not come into this category.
Loans and receivables
This item includes non-derivative financial assets with fixed or determinable payments that are not quoted on an active market.
These assets are valued at amortised cost using the effective discount rate method. Profits and losses are recognised in the income statement when the loans and receivables are eliminated or when a loss of value occurs, including normal amortisation.
Available-for-sale financial assets
Available-for-sale financial assets consist of all of those assets that do not fall into any of the categories mentioned above.
After being initially measured at cost, available-for-sale financial assets are measured at fair value. The profits and losses resulting from valuations are recognised in a separate item in shareholders’ equity for as long as the assets are held in the portfolio and for as long as there is no loss of value.
In the case of shares widely traded on regulated markets, fair value is determined by referring to the value established at the close of trading on the balance sheet date.
For investments where an active market does not exist, fair value is determined by valuations based on recent trading prices between independent parties, on the basis of the current market value of a financial instrument that is substantially similar or from an analysis of up-to-date cash flows or of option pricing models.
Available-for-sale financial assets also include investments in other companies.
3.10 Trade receivables and other receivables
Trade receivables and other receivables are initially measured at cost, i.e. at the fair value of the amount received during the transaction. Receivables are measured at their present values when the financial effect linked to the expected collection date is significant and the collection date can be reliably estimated.
Receivables are subsequently recognised in the financial statements at their estimated realisable value.
3.11 Treasury shares
Treasury shares are booked in a separate reserve under shareholders’ equity.
No profit or loss is recognised in the income statement for the purchase, sale, issue, cancellation or any other operation involving treasury shares.
3.12 Cash and cash equivalents
The cash and cash equivalents item includes liquid financial assets and financial investments falling due within three months and which entail only a minimal risk of variation in their face value. The aforementioned financial assets are stated at face value.
3.13 Financial liabilities
Financial liabilities include financial payables, derivative instruments, payables linked to financial leasing contracts and trade payables. All financial liabilities, unlike derivative financial instruments, are initially valued at fair value (as increased by any transaction costs) and are subsequently valued at amortised cost using the effective interest rate method.
Financial liabilities hedged by derivative instruments against the risk of changes in value (fair value hedges) are measured at fair value in accordance with the methodology outlined in IAS 39 for hedge accounting. Profits and losses resulting from subsequent variations in fair value are recognised in the income statement. The portions of these changes linked to the efficient portion of the hedge are compensated for by changes in value of the derivative instruments.
Financial liabilities hedged by derivative instruments against the risk of changes in cash flow (cash flow hedges), are measured at amortised cost using the method outlined in IAS 39 for hedge accounting.
3.14 Derecognition of financial assets and liabilities
A financial asset or, where applicable, a part of a financial asset or parts of a group of similar financial assets, is derecognised when:
- the right to receive cash flows from the asset has been extinguished;
- the company still has the right to receive cash flows from the asset but has taken on a contractual obligation to transfer the entire cash flow immediately to a third party;
- the company has transferred the right to receive cash flows from an asset and has transferred substantially all the risks and benefits deriving from the ownership of the financial asset or has transferred control of the financial asset.
A financial asset is derecognised from the balance sheet when the obligation relating to the asset is discharged, is cancelled or expires.
3.15 Loss in value of financial assets (impairment)
The company performs a review to determine whether a financial asset or group of financial assets has undergone a loss of value every time the financial statements are prepared.
Financial assets measured at amortised cost
If there is objective evidence of a reduction in the value of loans and receivables, the amount of the loss is booked to the income statement and is calculated as the difference between the asset’s carrying value and the present value of estimated cash flows discounted at the financial asset’s original effective interest rate.
If, in a subsequent period, the amount of the loss of value decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised loss of value is reversed up to the amount the asset would have had, taking amortisation into account, at the date of the reversal.
Available-for-sale financial assets
If an available-for-sale financial asset suffers an effective reduction in value, the accumulated loss is recognised in the income statement. The reversal of values relative to equity instruments recognised as available-for-sale is not recognised in the income statement. The reversal of values relative to debt instruments is recognised in the income statement if the increase in fair value of the instrument can be objectively related to an event occurring after the loss was recognised in the income statement.
Financial assets measured at cost
If there is objective evidence of a loss of value of an unquoted equity instrument that is not booked at fair value because its fair value cannot be reliably measured, or of a derivative asset that is linked to and settled by delivery of that unquoted equity instrument, the amount of the loss of value is measured as the difference between the carrying amount of the financial asset and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset.
3.16 Derivative financial instruments
Derivative financial instruments are initially recognised at fair value at the date they are stipulated. When a hedge operation is entered into, the company designates and formally documents the hedge relationship to which it intends to apply the hedge accounting, its objectives in managing the risk and the strategy pursued. The documentation includes the identification of the hedging instrument, the element or operation that is being hedged, the nature of the risk and the way the company intends to evaluate the effectiveness of the hedge in compensating exposure to variations in the fair value of the element hedged or of cash flows linked to the risk hedged.
It is assumed that such hedges are sufficiently effective to compensate for the exposure of the element hedged to variations in fair value or in cash flows attributable to the risk hedged. The evaluation of whether or not this hedge is in reality sufficiently effective is carried out on a continuous basis during the year.
Operations that satisfy the hedge accounting criteria are accounted for as follows.
Fair value hedge
If a derivative financial instrument is designated as a hedge for the exposure to variations in the fair value of an asset or liability attributable to a particular risk, the profit or loss deriving from subsequent variations in the fair value of the hedge instrument is recognised in the income statement. The profit or loss deriving from the adjustment of the fair value of the item hedged, to the extent attributable to the risk hedged, modifies the carrying value of the item and is recognised in the income statement.
Cash flow hedge
If a derivative financial instrument is designated as an instrument for hedging the exposure to variations in cash flows of an asset or of a liability included in the financial statements or of a highly probable forecast transaction, the effective portion of the assets or of the losses deriving from the adjustment of the fair value of the derivative instrument is recognised in a special reserve in shareholders’ equity. The accumulated profit and loss is transferred from the equity reserve and recognised in the income statement when the results of the hedge operation are recognised in the income statement. The profit or loss associated with the ineffective part of a hedge is recognised in the income statement. If a hedging instrument is terminated but the hedging operation has not yet been carried out, the accumulated profits and losses remain in the reserve under shareholders’ equity and are reclassified to the income statement when the relative operation is carried out. If the hedging operation is no longer considered probable, the profits and losses not yet realised and recognised in equity are recognised in the income statement.
If hedge accounting cannot be applied, profits and losses resulting from the valuation at fair value of the derivative financial instrument are recognised in the income statement.
3.17 Provisions
Provisions against significant losses or liabilities that are certain or probable but whose amount or date of occurrence is impossible to establish when the financial statements are prepared, are recognised when it becomes probable that a present, legal or constructive obligation exists as the result of events that happened in the past, when the obligation in question is onerous and when the amount can be reliably estimated.
Provisions are valued at fair value for each obligation. When the time value of money linked to a forecast of when the payment will be made is significant and the payment date can be reliably estimated, the provision includes the financial component which is recognised in the income statement under financial income (expense).
3.18 Employees’ leaving entitlement
Benefits due to employees on leaving a company may be separated into:
- defined contribution plans, represented by the amounts accrued as of 1 January 2007;
- defined benefit plans, represented by the severance indemnity (TFR) liabilities as of 31 December 2006.
In defined contribution plans, the legal or constructive obligation of a company is limited to the amount of the contributions it has paid to the plan, and as a result the actuarial and investment risks fall on the employee. In defined benefit plans, the obligation of a company consists in granting and guaranteeing agreed benefits to employees, so the actuarial and investment risks fall on the company.
Calculation of TFR liabilities is based on the TFR fund matured at 31 December 2006, and uses an actuarial method based on demographic assumptions (including mortality rates and the turnover of the workforce) and financial assumptions (the discount rate reflecting the time value of money and the inflation rate).
The amount recognised as a liability for defined benefit plans is represented by the present value of the obligation at the balance sheet date, net of the present value of any plan assets. The amount that is recognised as costs in the income statement also includes the following:
- social security costs relative to current labour;
- interest costs;
- actuarial gains or losses;
- the return expected from any plan assets.
The company does not apply the corridor method and therefore recognises all actuarial gains and losses directly in the income statement.
The charge for amounts accruing to employees during the year and actuarial gains or losses are booked under personnel costs, while the financial component, which represents the cost the company would have to incur if it were to seek a loan on the market for the amount of the obligation, is booked under financial income (expense).
The termination indemnity for agents is also determined on an actuarial basis. The charge for the estimated amount accruing to agents during the year, which becomes payable only under certain conditions if the agency relationship is terminated, is booked under “Other income (expense)”.
3.19 Stock-options
The company grants additional benefits to certain directors and managers who carry out functions that are relevant for the attainment of the company’s strategic results through equity-settled stock option plans. In accordance with IFRS 2, these stock options are measured at their fair value at the time they are granted. Fair value is determined on the basis of a binomial model and subject to the rules of the individual plans.
The company applies the provisions of IFRS 2 for all stock option plans granted after 7 November 2002.
The cost of these benefits is booked to personnel costs during the period of service and is recognised over the vesting period from the date the options are granted, with an equal amount being recognised in the “Reserve for stock options” in shareholders’ equity.
Benefits which are directly granted by the parent company Arnoldo Mondadori Editore SpA to the employees or directors of subsidiary companies are recognised as an increase in the cost of the relative investment, with an equal amount recognised in the “Reserve for stock options”.
After the grant date, any variation in the number of options results in an adjustment to the overall cost of the plan, which is then made in accordance with the method referred to above. At the end of every year, the previously calculated fair value of every option is neither reviewed nor updated, but remains unchanged in shareholders’ equity, although the estimate of the number of options that mature up to the maturity date (and therefore the number of employees who have the right to exercise these options) is updated at that time. Any change in this estimate is recognised in the “Reserve for stock options” and in personnel costs in the income statement.
When an option is exercised, the part of the “Reserve for stock options” relating to exercised options is reclassified under “Share premium reserve” while the part of the “Reserve for stock options” relating to cancelled or expired options is reclassified under “Other reserves”.
3.20 Recognition of revenues and costs
Revenues earned from the sale of goods are recognised net of discounts, allowances and returns when it is probable that the economic benefits arising from the sale will flow to the company and when the amount of the revenues can be reliably determined.
Revenues earned from the sale of magazines and the relative advertising space are recognised on the basis of the date of publication of the magazines.
Revenues deriving from services are recognised on the basis of the state of completion of the services, when it is probable that the economic benefits arising from the sale will flow to the company and when the amount of the revenues can be reliably calculated.
Revenues from interest are recognised on a temporal basis using the effective interest method; royalties are recognised on an accrual basis and subject to the conditions of the respective agreements; dividends are recognised when the shareholder’s right to receive payment has been established.
Costs are recognised in the same way as income and on an accrual basis.
3.21 Current, pre-paid and deferred taxation
Current taxes are calculated on the basis of an estimate of taxable income and in accordance with the laws prevailing in the country in which the company is resident.
Pre-paid/deferred tax assets and liabilities are calculated on all the temporary differences between the tax base of assets and liabilities and their relative carrying values in the financial statements, with the exception of the following:
- temporary taxable differences deriving from the initial recognition of goodwill;
- temporary taxable or deductible differences resulting from the initial recognition of an asset or a liability in an operation that is not a business combination and which does not influence either the result or the taxable income at the time of the operation in question;
- for investments in subsidiary, associated and jointly-controlled companies when:
- the company is able to control the timing of the reversal of temporary taxable differences and it is probable that these differences will not reverse in the foreseeable future;
- it is not probable that deductible temporary differences will reverse in the foreseeable future and that taxable profit will be available against which the temporary differences can be utilised.
The carrying value of pre-paid tax assets is reviewed at the end of every period and is reduced if it is no longer probable that sufficient taxable profit will be available in the future for realising all or part of the assets.
Deferred tax assets and liabilities are calculated on the basis of the tax rates that are expected to apply to the period when the assets are realised or the liabilities settled, based on tax rates that have been enacted or substantively enacted by the balance sheet date.
Taxation relating to items recognised directly in equity is recognised directly in equity and not in the income statement.
3.22 Operations in foreign currencies
Revenues and costs relating to operations in foreign currencies are expressed in the money of account using the exchange rates ruling on the day the operation was carried out.
Monetary assets and liabilities in foreign currencies are converted at the exchange rate ruling at the balance sheet date and any exchange differences are recognised in the income statement.
Non-monetary items valued at historical cost in foreign currencies are converted using the exchange rates ruling at the time the transaction was carried out. Non-monetary items booked at fair value in foreign currencies are converted using the exchange rates ruling at the time that fair value was calculated.
3.23 Grants and contributions
Grants and contributions are recognised if there is a reasonable certainty that they will be received and if all the conditions referring to them are satisfied. When the grants are linked to cost items, they are recognised as income and recognised on a systematic basis so that they are in proportion to the costs they are intended to set off. In the cases where a grant is linked to an asset, the relative fair value is deferred in long-term liabilities and is recognised in the income statement at a constant rate over the useful life of the asset in question.
3.24 Assets and liabilities held for sale (discontinued operations)
Non-current assets and groups of assets and liabilities whose carrying value will be mainly recovered through disposal instead of continuous use are presented separately from other assets and liabilities in the balance sheet. These assets and liabilities are recognised as “Assets and liabilities held for sale” and are measured at the lower of their carrying value and their fair value less probable disposable costs. Gains and losses, net of their relative fiscal effects, resulting from the valuation or disposal of the assets or liabilities in question are recognised in a specific item in the income statement.
3.25 Accounting standards and interpretations adopted by the Eurpean Union with effect from 1 January 2010 and applicable to Arnoldo Mondadori SpA
The following accounting standards are not applicable to the company’s separate financial statements.
- IFRS 3R – Business combinations
- IAS 27R – Consolidated and separate financial statements
- IFRS 5 – Non-current assets destined for sale and discontinued operational assets
- IFRS 8 – Operational segments
- IAS 36 – Reduction of value of assets
3.26 New standards and interpretations adopted by the Eurpean Union but not yet effective and applicable to Arnolodo Mondadori Editore SpA
As required by IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, the possible impact of new standards or interpretations on the financial statements in their first year of application are listed below.
On 6 May 2010, the IASB issued the latest series of Improvements to IFRS relating to the period 2008-2010, which contain minor changes to the accounting standards in force that are not relevant to financial statements.