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Change Report

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 items10;
  • 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.

9 The financial statements are the same as those adopted in the 2015 Annual Report except for the representation of the Italgas Group as discontinued operations. The effects of the representation as discontinued operations are illustrated in Note 21 “Discontinued operations”.

10 The assets and liabilities are classified as current if: (i) their realisation is expected in the normal corporate operating cycle or in the twelve months after the financial year-end; (ii) they are composed of cash or cash equivalents which do not have restrictions on their use over the twelve months following the year-end date; or (iii) they are mainly held for trading purposes. Derivative instruments established for trading purposes are classified under current components, irrespective of the maturity date. Derivative instruments are classified as current when their realisation is expected within the twelve months after the year-end date; otherwise they are classified under non-current components.

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