31 The Group adopts an income statement structure showing cost components broken down by nature, while the assets and liabilities of the balance sheet and financial position are divided between current and non- current. The statement of cash flows is prepared by the indirect method. The schemes employed are those that best represent the Group\u2019s economic and financial standing. An asset is classified as current when: \ue001 it may be supposed that the asset will be sold, or is owned for sale or consumption, during the course of the company\u2019s regular operating cycle; \ue001 it is owned primarily for the purpose of sale; \ue001 it is supposed that it will be sold within twelve months of the end of the year; \ue001 it consists of liquid assets or cash equivalents (unless it is forbidden to trade it or use it to pay a liability for at least twelve months from the end of the year). All other assets are classified as non-current. Standard IAS 1 includes tangible assets, intangible assets and long-term financial assets among non-current assets. A liability is classified as current when: \ue001 it is expected to be extinguished in the course of the company\u2019s regular operating cycle; \ue001 it is owned primarily for the purpose of sale; \ue001 it will be extinguished within twelve months of the end of the year; \ue001 there is no unconditional right to defer payment of the liability for at least twelve months after the end of the year. Clauses of a liability that could, if the counterpart so wishes, give rise to its extinction through issuing of instruments representing capital do not affect its classification. The company has classified all other liabilities as non-current. The operating cycle is the amount of time that passes between acquisition of goods for the production process and cashing them in as liquid assets or cash equivalents. When the regular operating cycle is not clearly identifiable, its duration is assumed to be twelve months. The Consolidated Financial Statements are prepared in Euro, the currency in which the Company operates. The statement of financial position, statement of profit and loss, the explanatory notes and the tables illustrating them are expressed in thousands of Euro, unless otherwise specified. The Consolidated Financial Statements have been prepared as follows: \ue001 on the basis of optimal knowledge of EU-IFRS, taking into account best practice in the field; any future orientations and updated interpretations will be reflected in subsequent years, on the basis of the methods specified in the applicable accounting standards; \ue001 with a view to business continuity, on an accrual accounting basis, in compliance with the principle of the relevance and significance of the information and the prevalence of substance over form, and with a view to promoting consistency with future presentations. Assets and liabilities, costs and revenues are not compensated against one another unless this is permitted or required under International Accounting Standards; \ue001 on the basis of the conventional criterion of historical cost, with the exception of assessment of financial assets and liabilities in cases in which it is obligatory to apply the fair value criterion, and for the financial statements of companies operating in economies subject to hyperinflation, which are prepared on the basis of the current cost criterion.
It should also be noted that with reference to business continuity, the economic and financial performance of the Group recorded during the year was very positive and cash equivalents at 31 December 2023, amounting to Euro 191.5 million, credit lines currently available and the cash flows that will be generated by operations are considered adequate to meet the Group\u2019s obligations and to finance its operations.