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The Company has elected to present its income statement
according to the nature of expenses, whereas assets and
liabilities in the statement of financial position have been
classified as either current or non-current. The statement of
cash flows has been prepared using the indirect method.
The Company 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.
All the amounts shown in the tables in the following Notes
are expressed in thousands of Euro, unless otherwise stated.
It should be noted that, in view of the reorganisation
mentioned in Section A. General information, the Company
has decided to change the way it presents its income,
REPORTING FORMATS AND DISCLOSURES
classifying it as follows:
• Revenue from sales of strategic materials: this reports
revenue from the resale of strategic materials (copper,
aluminium and lead) to Group companies;
• Other income: this mainly comprises charges made by
Prysmian S.p.A to its subsidiaries for services provided by
its head office functions and for royalties for use of patents
and know-how.
Based on this classification, the Company has reclassified
the prior year data to provide readers with a more consistent
comparison with the figures presented in the financial
statements at 31 December 2013. Accordingly, it has
reclassified Euro 55,730 thousand in recharges of head office
services from “Revenue from sales” to “Other income”. The
Company does not consider this change to the 2012 data to
be of significance.
The accounting policies and standards adopted are the same as those used for preparing the consolidated financial
statements, to which reference should be made, except as described below.
B.
ACCOUNTING POLICIES
B.1
DIVIDENDS
B.2 SHARE-BASED PAYMENTS
Dividend income is recognised in the income statement when
the right to receive the dividends is established, normally
coinciding with the shareholders’ resolution declaring the
same, irrespective of whether such dividends are paid out of
an investee company’s pre- or post-acquisition earnings.
Stock options are valued on the basis of the difference
between grant date fair value and purchase price, and, in the
case of most subsidiary company employees, on the basis of
the difference between vesting date fair value and purchase
price. This value is recognised:
a) as an expense in the income statement, with a matching
credit to an equity reserve, for options vesting in favour of
the Company’s employees;
b) if the related cost is recharged, the part relating to the
grant date fair value is recognised in equity, while the
difference between the grant date fair value and the
The distribution of dividends to shareholders is recognised
as a liability in the Company’s financial statements when the
distribution of such dividends is approved.
vesting date fair value is recognised as a dividend in the
income statement;
c) as an increase in the value of investments in subsidiaries,
with a matching credit to an equity reserve, for options
vesting in favour of employees of Group companies.
In all cases, the value is recognised on a straight-line basis
over the option vesting period; this recognition is based on the
estimated number of stock options that will effectively vest
in favour of eligible employees, taking into consideration any
vesting conditions that are not based on the market value of
the shares.
