Fair valuing residual interests in previous associate and joint venture following partial disposals boosts profit Italian bank Intesa Sanpaolo makes partial disposals of investments in companies previously accounted for as an associate and joint venture that result in loss of significant influence and joint control and fair values the residual interests thus increasing profit from continuing operations by 5.5%.
Prior year change to criteria for impairing investments reversed Italian bank Intesa Sanpaolo reverses a prior year change to its procedure for impairing financial assets and redefines a “prolonged” decline in fair value as 24 rather than 12 months thus demonstrating a lack of consistency.
Commitments shifted from narrative to table Italian oil and gas company Eni discloses, in a table of commitments, expected capital expenditures over a number of years, with the comparative figure increased from €205 million to €13.4 billion, but leaves it unclear whether the amounts were aggregated with other figures in its prior year liquidity disclosures.
Comparative earnings per share significantly “misprinted” Italian tyre manufacturer Pirelli adjusts significantly its prior year analysis of earnings per share from continuing and discontinued operations and tells us that the comparative information is a misprint.
Purchase method not applied to acquisitions Italian gas provider Snam Rete Gas does not apply the purchase method to acquisition of two companies from its parent Eni as it falls out of the scope of IFRS and accounts for the excess of consideration over book values of net assets acquired as a reduction in equity which reduces by 24%.
Impairment assumption disclosures leap beyond the ‘reasonably possible’ Italian media company Mediaset discloses the changes to its principal impairment test assumptions required that reduce recoverable amount to the carrying value, indicating that changes between 11% and 489% in discount rate would have this effect.