4. Financial statements⁹

The formats adopted for the preparation of the financial statements are consistent with the provisions of IAS 1 – “Presentation of financial statements” (hereinafter “IAS 1”). In particular:

• the balance sheet items are broken down into assets and liabilities, and then further into current or non-current items;
• the income statement classifies costs by type, since this is deemed to be the best way of representing the Group’s operations and is in line with international best practice;
• the statement of comprehensive income shows the profit or loss in addition to the income and expense recognised directly in shareholders’ equity as expressly provided for by the IFRS;
• the statement of changes in shareholders’ equity reports the total income (expense) for the financial year, shareholder transactions and the other changes in shareholders’ equity;
• the cash flow statement is prepared using the “indirect” method, adjusting the profit for the year of non-monetary components.

It is believed that these statements adequately represent the Group’s situation with regard to its balance sheet, income statement and financial position.

Moreover, pursuant to Consob Resolution No. 15519 of 28 July 2006, any income and expense from non-recurring operations is shown separately in the income statement.

With regard to the same Consob Resolution, the balances of receivables/payables and transactions with related parties, described in more detail in Note 33 – “Related-party transactions”, are shown separately in the financial statements.

In compliance with IAS 1, unless otherwise stated, comparative data refer to the previous year.