These consolidated financial statements have been prepared in accordance with international accounting standards (IAS/IFRS) issued by the International Accounting Standards Board (“IASB”) and ratified by the European Union, as well as with the measures issued in implementation of Art. 9 of D. Lgs. no. 38/2005, including all the interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”), previous known as the Standing Interpretations Committee (“SIC”).
The financial statements are prepared on the basis of the principle of historical cost, modified as required for the valuation of certain financial instruments, in compliance with the matching and revenue recognition principles and on the assumption that the enterprise is a going concern. In fact, in spite of the presence of a difficult economic and financial environment, the Group has evaluated that there are no significant uncertainties, as defined in paragraph 25 of IAS 1, relating to the ongoing nature of the concern.
The Consolidated Financial Statements for the year ended December 31 2010, which include the Parent Company of the Group CIR S.p.A. (hereinafter “CIR”) and the companies directly or indirectly controlled by CIR, were prepared using the statements of the individual companies included in the consolidation, i.e. their statutory financial statements (known as “individual” or “separate” in IAS/IFRS terminology), or the consolidated statements of the sub-groups, examined and approved by their respective boards and amended and re-stated where necessary to bring them into line with the accounting principles listed below and, where there is compatibility, with Italian regulations. The various statements adopted are as follows:
- The Statement of Financial Position is organized in offsetting items classified as current and non-current assets and liabilities;
- The Income Statement shows a breakdown according to type of expense;
- The Cash Flow Statement was prepared using the indirect method;
- The Statement of Changes in Equity gives a breakdown of the changes which took place during the year and in the previous year.
- The Statement of Comprehensive Income shows items of income suspended in equity.
These financial statements were prepared in thousands of euro, which is the “functional” and “presentation” currency of the Group according to the terms of IAS 21, except where expressly indicated otherwise.
Events which occurred after the balance sheet date
After the close of the year there were no important events that could have affected the financial, equity and economic situation of the Company in any significant way. See point 6 of the Report on Operations for a description of the significant events which occurred after the close of the year.
In accordance with paragraph 17 of IAS 10, it should be noted that publication of these financial statements was authorized by the Board of Directors of the Company on March 10 2011.