Legal and operating changes introduced during 2013 required to restate comparative data for 2012 in order to allow for like-for-like comparison.
In particular, said changes concerned:
Adoption of amendments to IAS 19 – Employee benefits: the main change introduced by IAS 19 (2011) is the establishment, for defined-benefit plans, of a single method for recognising actuarial gains/losses to be included immediately in the calculation of the net obligations to employees through equity, reporting it in other comprehensive income. The method applied by the Group up to 31 December 2012, one of the various accounting treatments permitted under the prevision version of IAS 19, required all actuarial gains and losses to be immediately recognised in profit or loss.
Comparative data for the previous year were restated by reclassifying this item from "180 a) Personnel expenses" in profit or loss, totalling 209 thousand Euro, net of 57 thousand Euro in related taxes recognised in "290 Current tax expense" also in profit or loss, to "140 Valuation reserves", under liabilities, for an amount of 152 thousand Euro. The application of the amendments to IAS 19 has no quantitative impact on equity, since it consists in a reclassification of actuarial gains/losses to a component of equity, rather than in their recognition through profit or loss.
Changes in accounting methods: the Banca IFIS Group revised its methods of accounting for receivables purchased outright within the factoring activity (hereinafter "ATD", a titolo definitivo in Italian) in order to report them more accurately in the financial statements. Specifically, although most of these receivables are short-term, the Bank measured them at amortised cost and reported them accordingly in its accounts. Previously, receivables were recognised at par value (purchase value) under the item "70 Receivables due from customers", while the seller's consideration was recognised partly under "40 Commission income" (for the part accruing to the current year) and partly under "100 Other liabilities" as deferred income (for the part accruing to the following years). The amount accruing in the year is calculated using the straight-line accrual method, based on the loan's estimated duration. In the financial statements at 31 December 2013, the receivables concerned were recognised at amortised cost under "70 Receivables due from customers", and the relevant economic benefit was recognised under "10 Interest income". To allow for like-for-like comparison, the data for the previous year were reclassified, reporting "70 Receivables due from customers" under assets net of 14,4 million Euro in relevant deferred income recognised under Other liabilities, and reclassifying the seller's consideration from Commission income to Interest income for 33,1 million Euro.
Overall, the measurement at amortised cost, replacing the previous straight-line accrual method, had a negligible impact, confirming that the former method resulted in a good approximation of the value of ATD receivables. In light of the above, as this was a methodological revision with extremely limited quantitative effects, the Bank believes that the requirements for the restatement of comparative information set out in IAS 8 do not apply.
Budget Law: as a result of the provisions of Law 147 of 27 December 2013 (2014 budget law), Banca IFIS incurred a significant 7,8 million Euro increase in income tax expense for 2013. For more details on the provisions in the Budget Law that have an impact on the Bank, see the paragraph Impact of regulatory changes. For information purposes, the profit for the year determined according to the provisions previously in force is reported at the end of the tables in this Report (simulated consolidated profit for the year). All indicators involving Profit for the year were calculated using the official Profit for the year.
Changes to the calculation of ROE: the Group deemed it appropriate to adopt the method most commonly used in the financial industry to calculate ROE. To allow for like-for-like comparison, the Bank recalculated the ROE of the previous year.
Indicator used in the 2013 financial statements: profit for the year/average equity.
Indicator used until 2012: profit for the year/equity net of Valuation reserves for AFS securities, Profit for the year and Treasury shares.