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The accounting policies and standards adopted are the
same as those used for preparing the consolidated financial
statements, to which reference should be made, except as
described below.
B.
ACCOUNTING POLICIES AND STANDARDS
B.1
DIVIDENDS
B.2
SHARE-BASED PAYMENTS
Dividend income is recognised in the income statement when
the right to receive the dividends is established, normally
coinciding with the shareholders’ resolution declaring the
same, irrespective of whether such dividends are paid out of
an investee company’s pre- or post-acquisition earnings.
Share-based payments are accounted for as follows,
according to the nature of the plan:
(a) Stock options
Stock options are valued on the basis of the fair value
determined on their grant date. This value is recognised as
an expense in the income statement in the case of options
that vest in favour of the Company’s employees, as a credit
if the related cost is recharged or as an increase in the value
of investments in subsidiaries in the case of options that
vest in favour of Group company employees. In all cases,
the value is recognised on a straight-line basis over the
The distribution of dividends to shareholders is recognised
as a liability in the Company’s financial statements when the
distribution of such dividends is approved.
option vesting period, with the matching entry going to
equity; this recognition is based on the estimated number
of stock options that will effectively vest in favour of eligible
employees, taking into consideration any vesting conditions
that are not based on the market value of the shares.
(b) Equity-settled share-based payment transactions
Where plan participants acquire the Company’s shares at a
fixed price (co-investment plans), the difference between the
fair value of the shares and the purchase price is recognised
over the vesting period in personnel costs, with a matching
entry in equity.
