The Consolidated Financial Statements of the ACEA S.p.A. for the financial year ended at 31 December 2014 were approved by Board of Directors’ resolution on 11 March 2015. The Parent Company, ACEA S.p.A. is an Italian joint-stock company, with its registered office in Rome, at Piazzale Ostiense 2 and whose shares are traded on the Milan Stock Exchange.
The ACEA Group’s principal operating segments are described in the Report on Operations.
COMPLIANCE WITH IAS/IFRS
The Consolidated Financial Statements have been prepared under the IFRS effective at the end of the reporting period, as approved by the International Accounting Standards Board (IASB) and endorsed by the European Union according to the procedure as per Art. 6 of Regulation (EC) n. 1606/2002 of the European Parliament and the Council of 19 July 2002 and pursuant to Art. 9 of Legislative Decree 38/05.
The standards consist of International Financial Reporting Standards (IFRS), International Accounting Standards (IAS) and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and of the Standing Interpretations Committee (SIC), collectively referred to as “IFRS”.
BASIS OF PRESENTATION
The Consolidated Financial Statements consist of the consolidated statement of financial position, consolidated income statement, statement of consolidated comprehensive income, consolidated statement of cash flows and the statement of changes in consolidated equity. The Report also includes notes prepared under the IAS/IFRS currently in effect.
It is pointed out that the income statement is classified on the basis of the nature of expenses; the items of the statement of financial position are based on the liquidity method by dividing between current and non-current items, and the income statement shows the integrated economic balance of revenue and charges which, by express provisions of the IAS/IFRS standards are recorded directly under equity, while the statement of cash flows is presented using the indirect method.
The consolidated financial statements are presented in euros and all amounts are rounded off to the nearest thousand euros unless otherwise indicated.
The figures in these consolidated financial statements are comparable to the figures for the comparative period.
ALTERNATIVE PERFORMANCE INDICATORS
In line with Recommendation CESR/05-178b, the content and meaning of the non-GAAP measures of performance and other alternative performance indicators used in these financial statements are illustrated below:
- For the ACEA Group the gross operating profit (or EBITDA) is an indicator of operating performance, and from 1 January 2014 also includes the condensed result of investees under joint control, for which the consolidation method has been modified
following the implementation of the new international accounting standards for financial reporting IFRS10 and IFRS11. The gross operating profit is calculated by adding together the Operating profit and “Amortisation, depreciation, provisions and
- Net financial position is an indicator of the ACEA Group’s financial structure, obtained by adding together non-current borrowings and financial liabilities net of non-current financial assets (loans and receivables and securities other than investments), current borrowings and other current liabilities net of current financial assets, cash and cash equivalents;
- Net invested capital is the sum of “Current assets”, “Non-current assets” and assets and liabilities held for sale, less “Current liabilities” and “Non-current liabilities”, excluding items taken into account in calculating the net financial position.
USE OF ESTIMATES
In application of IFRS, preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of revenue, costs, assets and liabilities and the disclosure of contingent assets and liabilities as at the reporting date. The actual amounts may differ from such estimates. Estimates are used for the recognition of provisions for credit risk, obsolescent inventories, impairment charges incurred on assets, employee benefits, fair value of derivatives, taxes and other provisions. The original estimates and assumptions are periodically reviewed and the impact of any change is recognised in the income statement.
In addition, it should be noted that certain estimation processes, particularly the more complex such as the calculation of any impairment of non-current assets, are generally performed in full only when drafting of the annual financial statements, unless there are signs of impairment that call for immediate impairment testing.
For further details on the procedures for estimating these amounts, see under the subsequent paragraphs.
CHANGES TO COMPARATIVE DATA
The provisions of IFRS 10 “Consolidated Financial Statements” (henceforth IFRS 10), IFRS 11 “Joint Control Agreement” (henceforth IFRS 11) and IAS 28 “Investments in subsidiaries and Joint Ventures” (henceforth IAS 28), approved with Regulation n. 1254/2012 issued by the European Commission on 11 December 2012, are applied with retroactive effect, adjusting the opening amounts of the statement of financial position at 1 January 2013 and the economic and equity data for 2013 included for comparative purposes.
The amounts of the statement of financial position opening at 1 January 2013, of the statement of financial position at 31 December 2013, and of the income statement, the statement of comprehensive income and the cash flow statement for 2012 and 2013 compared, have been restated following the adoption of IFRS 10 and IFRS 11. For more detail see the paragraph “Effects deriving from the application of IFRS10 (Consolidated Financial Statements) and IFRS11 (Arrangements for joint control)”.