Investment in Italy

Investment in ItalyLIABILITIES AND EQUITYFinancial liabilities and equity instruments (classification)Classification is based on legal form of financialinstruments.Preference shares are ever included withinequity.Convertible debt is always recognised as afinancial liability.Purchased own shares are showed as assetsinvestment and a non distributable reserve inequity must be created.Classification depends on substance of theissuer’s obligations.Mandatorily redeemable preference shares areclassified as financial liabilities.Proceeds received as a result of issuing aconvertible debt is allocated between equity andfinancial liabilityPurchased own shares are recognised asdeduction from equity.A restructuring provision is recognised at themoment of the board of directors’ resolution.No detailed standard on revenue recognitionexists. Revenue is generally recognised whenownership is transferred or when revenue islegally enforceable.Restructuring provisionA restructuring provision must be made ifa detailed plan has been announced or ifimplementation of the plan has actually started.INCOME STATEMENTSRevenueBased on several criteria, which require therecognition of revenue when risks and rewardshave been transferred and the revenue can bemeasured reliably.Employee benefits – pension costs (defined benefit plans)No general guidance for pension cost. Noactuarial calculation is applied on the obligationfor severance pay (i.e. TFR-trattamento di finerapporto).Obligation for a defined benefit plan is estimatedusing an actuarial calculation (projected unit creditmethod)4.8 Due dates for filing the year-end accounts and taxreturns and for making tax payments4.8.1Year-end accounts1. Approval of the annualfinancial statementsTask Description DeadlineThe shareholders approve the year-endaccounts (including notes) by adoptinga specific resolution during a generalmeeting convened in accordance withthe company’s articles of association.Within 120 days ofthe fiscal year-end(180 days in specialcircumstances).© 2012 KPMG S.p.A., KPMG Advisory S.p.A., KPMG Fides Servizi di Amministrazione S.p.A., KPMG Audit S.p.A., Italian limited liability share capital companies, and Studio Associato Consulenza legale e tributaria, anItalian professional partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.37