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B.2
BASIS OF CONSOLIDATION
risk management of these Explanatory Notes contain
a description of how the Group manages financial risks,
including liquidity and capital risks.
In application of Legislative Decree 38 of 28 February 2005
“Exercise of the options envisaged by article 5 of European
Regulation 1606/2002 on international accounting standards”,
the Company has prepared its consolidated financial
statements in accordance with the international accounting
and financial reporting standards (hereafter also “IFRS”)
adopted by the European Union.
The term “IFRS” refers to all the International Financial
Reporting Standards, all the International Accounting
Standards (“IAS”), and all the interpretations of the
International Financial Reporting Interpretations Committee
(“IFRIC”), previously known as the Standing Interpretations
Committee (“SIC”).
IFRS have been applied consistently to all the periods
presented in this document. The consolidated financial
statements have been prepared in accordance with IFRS
and related best practice; any future guidance and new
interpretations will be reflected in subsequent years, in
the manner established from time to time by the relevant
accounting standards.
The Group has elected to present its income statement
according to the nature of expenses, whereas assets and
liabilities in the statement of financial position are classified
as current or non-current. The statement of cash flows is
prepared using the indirect method. The Group has also
applied the provisions of Consob Resolution 15519 dated 27
July 2006 concerning financial statement formats and the
requirements of Consob Communication 6064293 dated 28
July 2006 regarding disclosures.
During 2009 and 2010, Consob (the Italian Securities and
Exchange Commission), together with the Bank of Italy and
ISVAP (the Italian insurance industry regulator), issued two
documents (numbers 2 and 4): “Disclosures in financial
reports about business continuity, financial risks, asset
impairment tests and uncertainties in the use of estimates”
and “Disclosures in financial reports about asset impairment
tests, about contractual clauses in debt financing, about
debt restructuring and about the fair value hierarchy” which
have been taken into account when preparing the present
document.
The financial statements have been prepared on the historical
cost basis, except for the valuation of certain financial assets
and liabilities, including derivatives, which must be reported
using the fair value method.
The consolidated financial statements for 2012, presented in
the present annual financial report for comparative purposes,
have undergone some amendments compared with the
previously published figures. Further details can be found
in Section C. Restatement of comparative figures at 31
December 2012.
In addition, some reclassifications have been made from
“Historical cost” and “Accumulated depreciation and
impairment” in “Property, plant and equipment” as shown
in Note 1. Property, plant and equipment.
The financial statements consolidated for Group subsidiaries
have been prepared for the year ended 31 December 2013
and the year ended 31 December 2012. They have been
adjusted, where necessary, to bring them into line with Group
accounting policies and standards.
SUBSIDIARIES
The Group consolidated financial statements include
the financial statements of Prysmian S.p.A. (the Parent
Company) and the subsidiaries over which the Parent
Company exercises direct or indirect control. Subsidiaries are
consolidated from the date control is acquired until the date
such control ceases. Control is determined when the parent
directly or indirectly owns the majority of an investee’s voting
rights or is able to exercise dominant influence, which is the
power to govern, including indirectly under a statute or an
agreement, the financial and operating policies of investees
so as to obtain the resulting benefits, even irrespective of
the ownership interest held.
The existence of potential voting rights exercisable at
the reporting date is also taken into consideration for the
purposes of determining control.
