Page 5 - PARMALAT 2017 ANNUAL REPORT

PARMALAT S.P.A. .............................................................................................................................................................................. 104
FINANCIAL STATEMENTS AT DECEMBER 31, 2017 .......................................................................................................................... 106
Statement of Financial Position .................................................................................................................................................. 107
Income Statement ....................................................................................................................................................................... 108
Statement of Comprehensive Income ......................................................................................................................................... 109
Statement of Cash Flows ............................................................................................................................................................. 110
Statement of Changes in Shareholders’ Equity ........................................................................................................................... 111
NOTES TO THE SEPARATE FINANCIAL STATEMENTS ........................................................................................................................... 112
Foreword ..................................................................................................................................................................................... 112
Format of the Financial Statements ............................................................................................................................................ 112
Principles for the Preparation of the Separate Financial Statements ......................................................................................... 113
Valuation Criteria ........................................................................................................................................................................ 113
Accounting Principles, Amendments and Interpretations Approved by the E.U. and in Effect as of January 1, 2017 ..................... 124
New Accounting Principles and Interpretations Endorsed by the E.U. but not yet in Effect ........................................................ 124
New Accounting Principles, Amendments and Interpretations Published by the IASB not yet Adopted by the E.U. ....................... 126
Intercompany and Other Related-party Transactions ................................................................................................................. 127
Notes to the Statement of Financial Position - Assets ................................................................................................................. 134
Notes to the Statement of Financial Position - Shareholders’ Equity .......................................................................................... 148
Notes to the Statement of Financial Position - Liabilities ............................................................................................................ 151
Guarantees and Commitments ................................................................................................................................................... 156
Legal Disputes and Contingent Liabilities at December 31, 2017 ............................................................................................... 157
Notes to the Income Statement .................................................................................................................................................. 160
Other information ....................................................................................................................................................................... 165
CERTIFICATION OF THE STATUTORY FINANCIAL STATEMENTS PURSUANT TO ARTICLE 81-TER OF CONSOB REGULATION
NO. 11971 (WHICH CITES BY REFERENCE ARTICLE 154-BIS, SECTION 5, OF THE UNIFORM FINANCIAL CODE) OF MAY 14, 1999,
AS AMENDED .......................................................................................................................................................................... 178
PARMALAT S.P.A. - REPORT OF THE INDEPENDENT AUDITORS .................................................................................................179
PARMALAT GROUP .................................................................................................................................................................. 188
CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2017 ................................................................................................ 190
Consolidated Statement of Financial Position ............................................................................................................................. 191
Consolidated Income Statement ................................................................................................................................................. 192
Consolidated Statement of Comprehensive Income ................................................................................................................... 193
Consolidated Statement of Cash Flows ....................................................................................................................................... 194
Statement of Changes in Consolidated Shareholders’ Equity ..................................................................................................... 195
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ................................................................................................................. 196
Foreword ..................................................................................................................................................................................... 196
Format of the Financial Statements ............................................................................................................................................ 196
Segment Information .................................................................................................................................................................. 197
Principles for the Preparation of the Consolidated Financial Statements ................................................................................... 197
Principles of Consolidation .......................................................................................................................................................... 197
Scope of Consolidation ................................................................................................................................................................ 199
Valuation Criteria ........................................................................................................................................................................ 201
Accounting Principles, Amendments and Interpretations Approved by the E.U. and in Effect as of January 1, 2017 .............................. 212
New Accounting Principles and Interpretations Endorsed by the E.U. but not yet in Effect ........................................................ 212
New Accounting Principles, Amendments and Interpretations Published by the IASB not yet Adopted by the E.U................................. 214
Related-party Transactions ......................................................................................................................................................... 219
Notes to the Statement of Financial Position - Assets ................................................................................................................. 226
Notes to the Statement of Financial Position - Shareholders’ Equity .......................................................................................... 244
Notes to the Statement of Financial Position - Liabilities ............................................................................................................ 247
Guarantees and Commitments ................................................................................................................................................... 258
Legal Disputes and Contingent Liabilities at December 31, 2017 ............................................................................................... 259
Notes to the Income Statement .................................................................................................................................................. 263
Other Information ....................................................................................................................................................................... 269
CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS PURSUANT TO ARTICLE 81-TER OF CONSOB REGULATION
NO. 11971 (WHICH CITES BY REFERENCE ARTICLE 154-BIS, SECTION 5, OF THE UNIFORM FINANCIAL CODE) OF MAY 14, 1999,
AS AMENDED .......................................................................................................................................................................... 291
PARMALAT GROUP - REPORT OF THE INDEPENDENT AUDITORS ...............................................................................................292
REPORT OF THE BOARD OF STATUTORY AUDITORS .................................................................................................................. 300