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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Dividends
Dividends recognised to shareholders are recorded on the date of the Shareholders’ Meeting
resolution.
Earnings per share
The basic earnings/(loss) per share is calculated by dividing the result of the Company by the
weighted average shares outstanding during the period.
In order to calculate the diluted earnings/(loss) per share, the average weighted number of shares
outstanding is adjusted assuming the conversion of all shares with potential dilution effect.
The net result is also adjusted to account for the
effects of conversion, net of taxes.
The diluted earnings/(loss) per share is calculated by dividing the result of the company by the
weighted average number of ordinary shares in circulation during the period and those potentially
arising from the conversion of all potential ordinary shares with dilutive effect.
Use of estimates
The preparation of the financial statements requires the Directors to apply accounting principles and
methods that, in some circumstances, are based on difficulties and subjective valuations and estimates
based on the historical experience and assumptions which are from time to
time considered reasonable
and realistic based on the relative circumstances. The application of these estimates and assumptions
impact the value of the assets and liabilities of the costs and revenues recognised to the financial
statements and the disclosure upon contingent assets and liabilities at the reporting date.
Actual results
may differ from these estimates.
The accounting principles which require greater judgement by the Directors in the preparation of the
estimates and for which a change in the underlying conditions or the assumptions may have a
significant impact on the condensed financial statements are briefly described below.
Measurement of receivables: trade receivables are adjusted by the doubtful debt provision,
taking into account the effective recoverable value. The calculation of the write-downs
requires the Directors to make valuations based on the documentation and the information
available relating to the solvency of the clients, and from market and historical experience.
Measurement of goodwill and indefinite intangible assets: in accordance with the accounting
principles applied by the Group, the goodwill and the intangible assets are subject to an
annual verification (“impairment test”) in order to verify whether a reduction in value has
taken place. This verification requires the Directors to make valuations based on the
information available within the Group and from the market, as well as from historical
experience; they in addition depend on factors which may alter over time, affecting the