Change in accounting criteria

The provisions of IFRIC 12 “Service Concession Arrangements” (hereinafter “IFRIC 12”) came into force in 2010. These set out the recognition and measurement criteria to be adopted for arrangements between the public and private sectors for the development, financing, management and maintenance of infrastructures under concessions. In view of the agreements in place within Snam Rete Gas, the application of IFRIC 12 entails the classification of concession infrastructures under intangible assets; in the balance sheet at 31 December 2009 presented for comparison purposes, the net book value of concession infrastructures in accordance with IFRIC 12 (€3,341 million) has been reclassified from “Property, plant and equipment” to “Intangible assets”.

The asset depreciation process relating to service concession arrangements has remained unchanged and continues to operate on the basis of the expected arrangements for obtaining the future economic benefits deriving from the use and residual value of the infrastructure, as envisaged by the reference legislative framework.

Additionally, with prospective effect as of 1 January 2010, and in accordance with the tariff review conducted by the Electricity and Gas Authority for the natural gas transportation business, the useful life of the following has been changed:

  • pipelines (from 40 to 50 years);
  • reduction plants (from 40 to 20 years).

The useful life thus defined does not exceed the technical life of the assets.

This change impacted net profit by €54 million as a result of less depreciation (net of tax effect).