1 Preparation and evaluation criteria
The condensed interim consolidated financial statements as at 30 June 2017 have been prepared from the perspective of the company as a going concern and in compliance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and endorsed by the European Union (hereinafter defined as IFRS) as well as the legislative and regulatory provisions in force in Italy.
The condensed interim consolidated financial statements as at 30 June 2017 were prepared in conformity with the provisions laid down by IAS 34 “Interim Financial Reporting”. Pursuant to IAS 34, the condensed interim consolidated financial statements do not include all the information required in annual consolidated financial statements and, as such, they should be read in conjunction with the Snam Group’s consolidated financial statements for the year ended 31 December 2016.
The financial statements are the same as those adopted for the Annual Report. The same consolidation principles and the same evaluation criteria illustrated in the preparation of the Annual Report were applied to the condensed interim consolidated financial statements and the former should be used as a reference. The exclusion from the scope of consolidation of some subsidiaries, which are not significant either individually or collectively, had no material effect28 for the purposes of correctly representing the results, balance sheet and cash flow of the Snam Group. These investments are valued at cost.
The notes to the financial statements are in condensed form. Current income taxes are calculated based on taxable income at the reporting date. Tax receivables and payables for current income taxes are recognised based on the amount which is expected to be paid/recovered to/from the tax authorities under the prevailing tax regulations or those essentially approved at the reporting date and the rates estimated on an annual basis.
Consolidated companies, non-consolidated subsidiaries, companies under joint control, associates and other significant equity investments, reporting for which is covered by Article 126 of Consob Resolution 11971 of 14 May 1999, as amended, are indicated separately in the appendix “Shareholdings, associates and equity investments of Snam at 30 June 2017”, which is an integral part of these notes.
The condensed interim consolidated financial statements as at 30 June 2017, approved by the Board of Directors of Snam S.p.A. at the meeting of 25 July 2017 were subjected to a limited audit by EY S.p.A. The limited audit was far less extensive than a full statutory audit.
The condensed interim financial statements are presented in euro. Given their size, amounts in the financial statements and respective notes are expressed in millions of euros.
28 Pursuant to IAS 1 – “Presentation of the Financial Statements”, information is significant if its omission or incorrect presentation may influence the economic decisions of users based on the figures in the financial statements.