Effects of amendments to the IFRS

On 1 January 2014, Ansaldo STS adopted IFRS 11 governing joint arrangements. The new standard has eliminated the possibility to consolidate interests in joint ventures using the proportionate method. Accordingly, they are now measured using the equity method. The joint ventures’ income statement figures are grouped into one caption (“Share of profits of equity-accounted investees”) including their profits or losses, while the statement of financial position figures are presented under equity investments, without any impact on the group’s equity.

A reconciliation showing the effect of the change in this accounting policy is set out below.

  31.12.2013 Effect of change 31.12.2013 restated
ASSETS      
Non-current assets      
Intangible assets 49,986 (9) 49,977
Property, plant and equipment 88,877 (501) 88,376
Equity investments 39,104 5,754 44,858
Loans and receivables 31,105 - 31,105
Deferred tax assets 37,448 (330) 37,118
Other non-current assets 21,741 - 21,741
  268,261 4,914 273,175
Current assets      
Inventories 114,823 (3,553) 111,270
Contract work in progress 288,607 - 288,607
Trade receivables 631,709 (6,216) 625,493
Tax assets 28,796 - 28,796
Loan assets 77,072 (13,015) 64,057
Other current assets 79,251 (681) 78,570
Cash and cash equivalents 193,086 (1,565) 191,521
  1,413,344 (25,030) 1,388,314
Non-current assets held for sale 87 - 87
Total assets 1,681,692 (20,116) 1,661,576
EQUITY AND LIABILITIES      
Equity      
Share capital 89,998 - 89,998
Reserves 408,716 - 408,716
Equity attributable to the owners of the parent 498,714 - 498,714
Equity attributable to non-controlling interests 346 - 346
Total equity 499,060 - 499,060
Non-current liabilities      
Employee benefits 29,980 - 29,980
Deferred tax liabilities 11,243 (30) 11,213
Other non-current liabilities 9,170 - 9,170
  50,393 (30) 50,363
Current liabilities      
Progress payments and advances from customers 644,591 (9,359) 635,232
Trade payables 364,716 (9,531) 355,185
Loans and borrowings 10,080 - 10,080
Tax liabilities 6,689 (998) 5,691
Provisions for risks and charges 14,825 - 14,825
Other current liabilities 91,338 (198) 91,140
  1,132,239 (20,086) 1,112,153
Total liabilities 1,182,632 (20,116) 1,162,516
Total liabilities and equity 1,681,692 (20,116) 1,661,576
(€’000) 30.06.2013 Effect of change First half of 2013 restated
Revenue 583,398 (11,639) 571,759
Other operating income 12,628 - 12,628
Purchases (119,171) 4,078 (115,093)
Services (248,239) 4,611 (243,628)
Personnel expense (162,645) 2,181 (160,464)
Amortisation, depreciation and impairment losses (7,878) 159 (7,719)
Other operating expense (8,477) 5 (8,472)
Changes in finished goods, work-in-progress and semi-finished products 1,913 2 1,915
(-) Internal work capitalised 1,062 - 1,062
Operating profit 52,591 (603) 51,988
Financial income 12,470 (288) 12,182
Financial expense (15,625) 328 (15,297)
Share of profits of equity-accounted investees 14 312 326
Pre-tax profit 49,450 (251) 49,199
Income taxes (17,175) 251 (16,924)
Profit from discontinued operations 92 - 92
Profit for the period 32,367 - 32,367
  attributable to the owners of the parent 32,359 - 32,359
  attributable to non-controlling interests 8 - 8
Earnings per share      
Basic and diluted 0.18*   0.18*
* Recalculated following the bonus issue of 15 July 2013.

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