Accounting standards and policies adopted
Pursuant to Regulation No. 1606 issued by the European Parliament and European Council in July 2002, the consolidated financial statements of the Pirelli & C. Real Estate Group have been prepared under the international financial reporting and accounting standards (IFRS) issued by the International Accounting Standards Board (IASB) and endorsed by the European Union, in force at December 31st, 2008.
Accordingly, the consolidated financial statements have been prepared on a historical cost basis except for investment property, derivatives financial instruments, financial assets designated at fair value and financial assets available for sale, all of which are stated at fair value.