Consolidated Financial Statements of the F.I.L.A. Group
Separate Financial Statements of F.I.L.A. S.p.A.
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Accounting standards, amendments and interpretations not yet approved by the EU and
applicable from January 1, 2016
IFRS 14 Regulatory Deferral Accounts
IFRS 14, issued by the IASB in January 2014 permits only those adopting IFRS for the first time to
continue to recognise amounts concerning Rate Regulation Activities according to the previous
accounting standards adopted. In order to improve comparability with entities which already apply
IFRS and who do not recognise these amounts, the standard requires that amounts recognised for rate
regulation be presented separately from the other accounts. Currently the approval process by the
European Union is suspended.
Amendment to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in
Associates and Joint Ventures
The standard issued by the IASB in September 2014 includes amendments which eliminate an
inconsistency in the treatment of the sale or conferment of assets between an
investor and its associate
or joint venture. The main consequence of the amendments is that a profit or loss is fully recognised
when the transaction refers to a business. The IASB, with a further amendment in December 2015,
cancelled the previous first application date planned for January 1, 2016 to be determined at a future
date.
IFRS 16 – Leases
The standard, published by the IASB in January 2016, proposes substantial changes to the accounting
treatment of leasing agreements in the lessee’s financial statements, which must recognise the assets
and liabilities deriving from contracts, without distinction between operating and financial leases, in
the statement of financial position. The IASB expects that the standard will be applied for years
commencing from January 1, 2019. Advance application is permitted for entities applying IFRS 15
Revenue from Contracts with Customers.
Amendment to IAS 12 - Recognition of deferred tax assets for unrealised losses
The amendment issued by the IASB in January 2016 clarifies the recognition of deferred
tax assets on
debt instruments measured at fair value. The amendments will be applied from periods beginning
January 1, 2017. Earlier application is permitted.
Amendment to IAS 7 - Statement of Cash Flows: Disclosure Initiative
The amendment provides clarifications to improve disclosure on financial liabilities. In particular, an
Consolidated Financial Statements of the F.I.L.A. Group
Separate Financial Statements of F.I.L.A. S.p.A.
69
entity should provide disclosure which enables the reader of the financial statements to understand the
changes to liabilities (and any related assets) recorded to the statement of financial position, whose
cash flows are or in the future will be recognised to the statement of cash flows as cash flows from
financing activities. The amendments are effective from January 1, 2017, although advance
application is permitted. The presentation of comparative disclosure relating to preceding periods is
not required.
Amendment to IFRS 2 - Classification and Measurement of Share-based Payment Transactions
In June 2016, the IASB published the amendments to IFRS 2 Classification and Measurement of
Share-based Payment Transactions, which clarify the recognition
of some types of share-based
payment transactions. These changes will be applied from January 1, 2018. Earlier application is
however permitted.
The Group will adopt these new standards, amendments and interpretations, according to the
application date and will evaluate the potential impacts, where they have been approved by the
European Union.
Consolidated Financial Statements of the F.I.L.A. Group
Separate Financial Statements of F.I.L.A. S.p.A.
70
Consolidation principles
The financial statements are prepared under the historical cost convention, modified where applicable
for the measurement of certain financial instruments or for the application of the acquisition method
as per IFRS 3, as well as on the going concern assumption.
Subsidiaries
The subsidiaries, reported in “Attachment 1 - List of companies included in the consolidation scope
and other investments”, are companies where the Group, as per IFRS 10, is exposed to variable
income streams, possesses rights to such income streams, based on the relationship with the entity,
and at the same time has the capacity to affect such income steams through the exercise of its power
over such entities.
The subsidiary companies are consolidated under the line-by-line method from the acquisition date, or
rather the date in which the Group acquires control and until such control is relinquished. The
carrying amount of the subsidiaries is eliminated against the share of equity held, net of the share of
the result for the year. The share of equity and result for the period relating to non-controlling
interests are recorded separately in the statement of financial position and income statement.
Investments recorded under equity method
Associates are entities in which the Group exercises a significant influence on the financial and
operating policies, although not having direct or joint control. Significant influence is the power to
participate in the financial and operating policy decisions of an investee, however not exercising
control or joint control.
Joint Ventures are entities in which the Group exercises, with one or more parties, joint control of
their economic activities based on a contractual agreement. Joint control assumes that the strategic,
financial and operating decisions are taken unanimously by the parties that exercise control.
The investments in associates and joint ventures are recorded in the separate financial statements at
cost and in the consolidated financial statements under the equity method. Based on this method,
investments are initially recognised at cost, subsequently adjusted according to the changes in the
value of the share of the Group in the equity of the associate. The Group’s share in the result of
associates and joint ventures is recorded in a separate income statement account from the date in
which significant influence is exercised and until such ceases to be exercised. Where necessary, the
accounting policies of associates and joint ventures are modified in line with the accounting policies
adopted by the Group.