Other financial assets
11. Other financial assets
Other financial assets amount to Euros 958,272 thousand compared to Euros 1,006,898 thousand at December 31, 2006.
The movements during the year are as follows:
|
(in thousands of Euros) |
||
|
12/31/2007 |
12/31/2006 |
|
|
Beginning balance |
1,006,898 |
1,032,317 |
|
Increase |
107,939 |
251,139 |
|
Decrease |
(24,173) |
(161,889) |
|
Impairments |
(34,137) |
(13,376) |
|
(Gains) losses transferred to the income statement upon disposal or when there is an impairment loss, previously recognized in equity |
1,019 |
(126,797) |
|
Changes in fair value |
(91,842) |
23,842 |
|
Reclassifications |
- |
1,206 |
|
Reimbursement of shares |
(7,374) |
- |
|
Other |
(58) |
456 |
|
958,272 |
1,006,898 |
|
|
of which: |
||
|
- financial assets measured at fair value through equity |
926,362 |
1,006,898 |
|
- financial assets measured at fair value through income statement |
31,910 |
- |
At December 31, 2007, financial assets, which change in fair value is recognized in equity, are as follows:
|
(in thousands of Euros) |
|||
|
12/31/2007 |
12/31/2006 |
||
|
Book value |
Fair value |
Fair value |
|
|
Listed securties |
|||
|
Telecom Italia S.p.A. |
387,172 |
387,172 |
417,767 |
|
Mediobanca S.p.A. |
90,246 |
210,990 |
266,997 |
|
RCS Mediagroup S.p.A. |
128,205 |
112,786 |
133,634 |
|
Fin. Priv. S.r.l. (az. Mediobanca) |
14,458 |
28,172 |
35,462 |
|
Avanex Corporation |
25,757 |
19,213 |
- |
|
Vittoria Capital N.V. (az. Vittoria Assicurazione) |
5,677 |
10,320 |
9,743 |
|
Altre società |
5,831 |
5,831 |
17,798 |
|
657,346 |
774,484 |
881,401 |
|
|
Unlisted securties |
|||
|
Alcatel Submarine S.A. |
44,805 |
44,805 |
44,805 |
|
Gruppo Banca Leonardo S.p.A. |
8,197 |
8,197 |
4,598 |
|
Istituto Europeo di Oncologia S.r.l. |
4,039 |
6,024 |
5,555 |
|
Tlcom I LP |
4,840 |
5,249 |
7,068 |
|
FC Internazionale S.p.A. |
3,033 |
3,033 |
3,033 |
|
Equinox Investment Company S.c.p.A. |
1,264 |
1,264 |
8,499 |
|
Altre Gruppo PRE |
6,526 |
6,526 |
1,111 |
|
Altre società |
5,570 |
5,570 |
4,754 |
|
78,274 |
80,668 |
79,423 |
|
|
Closed-end property investments funds |
|||
|
Olinda Fondo Shops |
33,491 |
30,964 |
12,835 |
|
Berenice Fondo Uffici |
14,004 |
18,182 |
14,741 |
|
Cloe Fondo Uffici |
7,846 |
12,195 |
9,673 |
|
Tecla Fondo Uffici |
5,395 |
7,630 |
6,870 |
|
Armilla |
2,000 |
2,115 |
1,828 |
|
Fondo Abitare Sociale 1 |
127 |
124 |
127 |
|
62,863 |
71,210 |
46,074 |
|
|
798,483 |
926,362 |
1,006,898 |
|
Financial assets, which change in fair value recognized in the income statement under “Gains (losses) from changes in fair value of financial assets”, is equal to Euros 31,910 thousand, refer to shares corresponding to 13.15 percent of the Cloe Fondo Uffici – a reserved unlisted closed-end real estate investment fund purchased by Pirelli Real Estate Netherlands B.V..
The designation of such shares at initial recognition as financial assets at fair value through profit or loss reflects the purpose of the acquisition of the shares which are expected to become part of a common investment platform for buildings intended for office use.
The increase refers mainly to the purchase of Avanex shares (Euros 33,427 thousand), RCS Mediagroup S.p.A. shares (Euros 10,907 thousand), Olinda Fondo Shops shares (Euros 21,465 thousand) and Cloe Fondo Uffici shares (Euros 32,544 thousand).
In addition to the increase, there was the decrease that refers mainly to the sale of shares of Telecom Italia S.p.A. shares (Euros 12,582 thousand), Intek S.p.A. (Euros 6,800 thousand) and KME Group S.p.A. (Euros 1,793 thousand).
Impairments are largely refered to shares of Telecom Italia S.p.A. (Euros 21,929 thousand), Avanex (Euros 7,670 thousand), Equinox (Euros 3,362 thousand) and Euroqube (Euros 850 thousand).
Net losses transferred to the income statement, previously recognized in equity, principally refer to the writedown of Telecom Italia S.p.A. shares.
Changes in fair value chiefly regard the shares of Mediobanca S.p.A. (negative for Euros 56,007 thousand), RCS Mediagroup S.p.A. (negative for Euros 31,755 thousand) and Equinox (negative for Euros 3,109 thousand).
For listed securities and closed-end real estate investment funds, the fair value corresponds to the stock market price at December 31, 2007.
For unlisted securities and closed-end real estate investment funds, the fair value has been estimated using appropriate estimation techniques.