Explanatory notes
1. Group structure and business Barilla Holding Società per Azioni (hereinafter “Barilla Holding”), a company incorporated in Italy with registered offices in Parma (Italy), is the parent company of the Barilla Holding Group (hereinafter “the Group”). The Group operates in the manufacture and sale of pasta, sauces, and bakery products, both in Italy and worldwide. The entire share capital is owned by the company Guido Maria Barilla e F.lli S.a.p.a. through its subsidiaries CO. FI. BA S.r.l. and Gelp S.p.A. A list of the companies included in the scope of consolidation is provided in Appendix 1.
2. Significant events after the balance sheet date No significant events took place after the balance sheet date.
3. Declaration of compliance with International Financial Reporting Standards (IFRS) and transition to IFRS The consolidated financial statements of the Group have been prepared in accordance with all of the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and endorsed by the European Union (EU). IFRS comprises all of the International Financial Reporting Standards, International Accounting Standards (IAS), and the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC), previously named the Standing Interpretations Committee (SIC). The Group has consistently applied the accounting policies in the preparation of the comparative information at 31 December 2008 and for the current year ended 31 December 2009. Comparative amounts for 2008 have been reclassified where necessary in order to align them and render them comparable with the amounts disclosed in the consolidated financial statements for the year ended 31 December 2009.
4. Basis of preparation – accounting and valuation policies In accordance with Regulation 1606 issued by the European Parliament and the European Council in July 2002, the Group’s consolidated financial statements (hereinafter “the Financial Statements”) have been prepared in accordance with International Financial Reporting Standards (IAS/IFRS) in force at 31 December 2009. IFRS have been adopted in Italy and other countries and a significant number of IFRS have recently been published or revised for which no established practices relating to their interpretation and application exist. Consequently, the Financial Statements have been prepared based on the most recent information and technical guidance available in respect of IFRS. Any new or revised interpretation of industry practice will be reflected in future financial statements in accordance with the relevant accounting standards. The Financial Statements for the year ended 31 December 2009 have been compared with the prior year financial statements (amounts included in brackets in the notes to the financial statements), and comprise of the consolidated balance sheet, consolidated income statement, statement of comprehensive income, statement of changes in equity, consolidated cash flow statement and these notes to the consolidated financial statements. The Group has opted to present the income statement using the classification of expenses by function while the balance sheet has been prepared with separate disclosure of current and non-current assets and liabilities. Cost of sales includes all production costs of goods sold, comprising raw materials, components, internal and third party direct and indirect production labour costs, industrial depreciation and amortization and all other production expenses. The cash flow statement has been presented applying the indirect method.
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