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The Group has established the policy of categorising its assets and liabilities at fair value in
the different measurement hierarchy levels, on the basis of the availability of observable
market data, and only transfers items between levels when such inputs are not available.
In 2013 no transfers were made between the fair value hierarchy levels corresponding to
the Group's financial instruments.
j)
Treasury shares
All the treasury shares of the Parent at 31 December 2013 represented 7.01% of the
issued share capital at that date (the treasury share transactions performed in 2013 and
2012 are summarised in Note 12-e). The amount relating to these treasury shares is
recognised as a reduction of equity.
Acquisitions or sales of treasury shares (see Note 12-e) are charged or credited to equity
at the amount paid or received, respectively, and, therefore, the gains or losses arising
from these transactions are not reflected in the income statement but are recognised as
an addition to or a reduction of equity, respectively.
k)
Bank borrowings
Interest-bearing bank loans, credit facilities and overdrafts are recorded at the amount
received. Borrowing costs are recognised in the consolidated income statement on an
accrual basis using the effective interest method and are added to the carrying amount of
the liability to the extent that they are not settled in the period inwhich they arise.
l)
Termination benefits
Under current employment legislation, the Group companies are required to pay
termination benefits to employees terminated under certain conditions. The Parent’s
directors do not expect any liabilities to arise other than those already recognised in this
connection.
m)
Provisions
The present obligations arising from past events which could give rise to a loss for the
Group which is uncertain as to its amount and timing are recognised as provisions in the
consolidated balance sheet at the present value of the most probable amount that it is
considered the Groupwill have to disburse to settle the obligation.
Provisions are quantified taking into consideration the best information available at the
date of preparation of the consolidated financial statements on the consequences of the
event giving rise to them and are reestimated at the end of each year.
