- v.2.6.2

EDAC VERSILIA S.R.L.

### Condensed explanatory notes - Income statement

The income statement shows the profit/loss for the year.

It provides a representation of operations, using a summary of positive and negative income components that contributed to the profit or loss. Positive and negative income components recognised in the financial statements in compliance with article 2425-bis of the Italian Civil Code are broken down according to which type of operations they belong to: core, ancillary and financial. Core operations consist of income components generated by transactions that occur on a continuous basis and related to the company’s core business, the activity for which it was founded. Financial operations consist of transactions that generate financial income and charges. On a residual basis, ancillary activities involve transactions that generate income components which form part of the ordinary activities but that do not fall under the core and financial activities.

##### Value of production

Revenues are recognised in the financial statements on an accrual basis, net of returns, allowances, discounts and bonuses, as well as directly related taxes. Revenues from the provision of services are recognised when the service is rendered. For the provision of continuous services, the related revenues are recognised for the amount accrued.

##### Cost of production

Costs and expenses are recognised on an accrual basis and by nature, net of returns, allowances, discounts and bonuses, in compliance with the principle of correlation with revenues, and recorded under the corresponding items in compliance with accounting standard OIC 12. As regards the purchase of goods, the related costs are recognised when the material and non-formal transfer of ownership occurs, taking the transfer of risks and benefits as the parameter of reference for the material transfer. In the case of purchase of services, the related costs are recognised when the service is received or concluded, while for continuous services the related costs are recognised for the amount accrued.

##### Financial income and charges

Financial income and charges are recognised on a pro tempore basis in relation to the amount accrued during the financial year.

##### Amount and nature of individual items of income/expenditure of exceptional magnitude or incidence

During the year under review, no revenues or other positive components deriving from events of an exceptional amount or impact were recognised. During the year, no costs arising from events of an exceptional amount or impact were recognised.

##### Income taxes for the year, current, deferred and prepaid

The company allocated annual taxes based on the application of current tax regulations. Current taxes refer to taxes accruing in the financial year as per tax returns. Taxes relating to prior years include direct taxes for prior years, including interest and penalties, and also refer to the positive (or negative) difference between the amount due as a result of settlement of litigation or an assessment compared to the value of the provision allocated in previous years. Finally, deferred and prepaid taxes refer to positive or negative income components subject respectively to taxation or deduction in years other than those of statutory recognition.

Financial statements as at 31-12-2017

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Automatically generated - Complies with the taxonomy itcc-ci-2017-07-06