6. Restatement of comparative disclosures

The data presented in the comments and in the tables of the notes to these consolidated financial statements are uniform and comparable. In this regard, note that with regard to contracts entered into for the purchase or sale of non-financial items with physical settlement that do not qualify for the own use exemption and are therefore measured at fair value through profit or loss (within the scope of IFRS 9), the Group slightly modified the recognition of those items in 2020 with a simple reclassification of costs between two lines of the income statement, thus enabling a closer correlation between costs and revenue together with more relevant information. This reclassification had no impact on either profit for the year or equity.

More specifically, in 2019 the previous accounting treatment of these transactions in non-financial items provided for recognition in:

  • “Other revenue” of changes in the fair value of sales contracts as well as, at the settlement date, the related revenue together with the effects in profit or loss of the derecognition of derivative assets or liabilities;
  • “Other operating costs” of changes in the fair value of purchase contracts as well as, at the settlement date, of the related costs together with the effects, in profit or loss, of the derecognition of derivative assets or liabilities in “Electricity, gas and fuel” or “Services and other materials”.

The current accounting treatment of these transactions in non-financial items (see the section “Contracts to buy or sell non-financial items” in note 2.2 “Significant accounting policies”) instead provides for recognition in:

  • “Other revenue” of changes in the fair value of sales contracts as well as, at the settlement date, the related revenue together with the effects in profit or loss of the derecognition of derivative assets or liabilities;
  • “Electricity, gas and fuel” of the changes in the fair value of purchase contracts;
  • “Electricity, gas and fuel” or “Services and other materials” of the related costs at the settlement date together with the effects in profit or loss of the derecognition of derivative assets or liabilities.

Consequently, the only difference between the two years under comparison concerned the reclassification of the 2019 amounts for changes in the fair value of contracts to buy non-financial items from “Other operating costs” to “Electricity, gas and fuel” and “Services and other materials”.

Impact on the income statement

Millions of euro        
    2019 Reclassifications 2019 restated
Revenue        
Revenue from sales and services   77,366   77,366
Other income   2,961   2,961
  [Subtotal] 80,327   80,327
Costs        
Electricity, gas and fuel   33,755 4,327 38,082
Services and other materials   18,580 256 18,836
Personnel expenses   4,634   4,634
Net impairment losses on trade receivables and other financial assets   1,144   1,144
Depreciation, amortization and other impairment losses   9,682   9,682
Other operating costs   7,276 (4,583) 2,693
Capitalized costs   (2,355)   (2,355)
  [Subtotal] 72,716   72,716
Net expense from commodity derivatives   (733)   (733)
Operating profit   6,878   6,878
Financial income from derivatives   1,484   1,484
Other financial income   1,637   1,637
Financial expense from derivatives   1,142   1,142
Other financial expense   4,518   4,518
Net income from hyperinflation   95   95
Share of profit/(loss) of equity-accounted investments   (122)   (122)
Pre-tax profit   4,312   4,312
Income taxes   836   836
Profit from continuing operations   3,476   3,476
Profit from discontinued operations   -   -
Profit for the year (owners of the Parent and non-controlling interests)   3,476   3,476
 Attributable to owners of the Parent    2,174   2,174
Attributable to non-controlling interests   1,302   1,302
Basic earnings/(loss) per share attributable to owners of the Parent (euro)   0.21   0.21
Diluted earnings/(loss) per share attributable to owners of the Parent (euro)   0.21   0.21
Basic earnings/(loss) per share from continuing operations attributable to owners of the Parent (euro)   0.21   0.21
Diluted earnings/(loss) per share from continuing operations attributable to owners of the Parent (euro)   0.21   0.21

 

In addition, during the year, a number of adjustments were made to the income statement figures for 2019 to take account of the fact that with effect from March 31, 2020 in Latin America the amounts attributable to large customers managed by the power generation companies were reallocated to the End-user Markets Business Line.

This change affected the segment reporting but did not produce any change in the overall figures for the Group, although reclassifications have been made within the various Business Lines.