annual report 2009 - Aer Lingus

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54 Financial Statements Aer Lingus Group Plc – Annual Report 2009Notes to the Consolidated Financial Statements [continued]2 Summary of significant accounting policies [continued]IFRS 2 (Amendment) Vesting Conditions and CancellationsThe amendment deals with vesting conditions and cancellations. It clarifies that vesting conditions are service conditions andperformance conditions only. Other features of a share-based payment are not vesting conditions. These features would need tobe included in the grant date fair value for transactions with employees and others providing similar services; they would not impactthe number of awards expected to vest or valuation thereof subsequent to the grant date. All cancellations, whether by the entity orby other parties, should receive the same accounting treatment. The Group has adopted IFRS 2 (Amendment) from 1 January 2009.The amendment does not have a material impact on the Group’s financial statements.IFRS 7 (Amendment) Improving Disclosures about Financial InstrumentsThe amendment requires enhanced disclosures about fair value measurement and liquidity risk. In particular, the amendment requiresdisclosure of fair value measurements by level of a fair value measurement hierarchy. The fair value measurement disclosures arepresented in Note 3.3. The Group has elected not to provide comparative information for these disclosures in the current year inaccordance with the transitional reliefs offered in these amendments.IFRS 8 Operating SegmentsIFRS 8 replaces IAS 14 Segment Reporting, which required identification of two sets of segments – one based on related products andservices, and the other on geographical areas. IAS 14 regarded one set as primary segments and the other as secondary segments. IFRS 8requires a ‘management approach’ under which segment information is presented on the same basis as that used for internal reportingpurposes. This has resulted in a redesignation of the Group’s reportable segments (see note 5), but has had no impact on the reportedresults or financial position of the Group.IAS 1 (Revised) Presentation of Financial StatementsThe revised standard separates owner and non-owner changes in equity. The statement of changes in equity includes only detailsof transactions with owners, with non-owner changes in equity presented as a single line. In addition the standard introduces thestatement of comprehensive income. The statement of comprehensive income presents all items of recognised income and expense,either in one single statement, or in two linked statements. The Group has elected to present two statements: an income statement anda statement of comprehensive income. The revised standard also introduced a number of terminology changes including revised titlesfor the financial statements. The consolidated financial statements have been prepared using the revised titles.The following new standards, amendments to existing standards and interpretations have been issued prior to the date of issuanceof the Group’s financial statements but have not been early adopted by the Group:• IFRS 1 (Revised) First Time Adoption of IFRS (effective 1 July 2009)• IFRS 3 (Revised) Business Combinations (effective 1 July 2009)• IAS 27 (Amended) Consolidated and Separate Financial Statements (effective 1 July 2009)• IFRIC 17 Distributions of Non-cash Assets to Owners (effective 1 July 2009)• IFRIC 18 Transfers of Assets from Customers (effective 1 July 2009)• IFRS 1 (Amendment) Additional exemptions for First-time Adopters (effective 1 January 2010)• IFRS 2 (Amendment) Group Cash-settled Share-based Payment Transactions (effective 1 January 2010)• IAS 32 (Amendment) Classification of Rights Issues (effective 1 February 2010)• IFRS 1 (Amendment) Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters (effective 1 July 2010)• IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (effective 1 July 2010)• IAS 24 (Revised) Related Party Disclosures (effective 1 January 2011)• IFRIC 14 Prepayments of Minimum Funding Requirement (effective 1 January 2011)• IFRS 9 Financial Instruments (effective 1 January 2013)
Financial Statements Aer Lingus Group Plc – Annual Report 2009552 Summary of significant accounting policies [continued]• Improvements to IFRSs (April 2009)– IFRS 2 Share-based Payments (effective 1 July 2009)– IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (effective 1 January 2010)– IFRS 8 Operating Segments (effective 1 January 2010)– IAS 1 Presentation of Financial Statements (effective 1 January 2010)– IAS 7 Statement of Cash Flows (effective 1 January 2010)– IAS 17 Leases (effective 1 January 2010)– IAS 18 Revenue (effective 1 April 2009)– IAS 36 Impairment of Assets (effective 1 January 2010)– IAS 38 Intangible Assets (effective 1 July 2009)– IAS 39 Financial Instruments: Recognition and Measurement (effective 1 January 2010)– IFRIC 9 Reassessment of Embedded Derivatives (effective 1 July 2009)– IFRIC 16 Hedge of a Net Investment in a Foreign Operation (effective 1 July 2009)Other than IAS 24 (Revised) and IFRS 9, for which the Directors have not yet had an opportunity to consider the potential impactof adoption, the above standards and amendments are not expected to have a significant impact on the Group’s financial statements.2.2 Consolidation(a) SubsidiariesSubsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the financial andoperating policies, generally accompanying a shareholding of more than one half of the voting rights. The existence and effect ofpotential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls anotherentity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated fromthe date that control ceases.The purchase method of accounting is used to account for the acquisitions of subsidiaries by the Group. The cost of an acquisitionis measured as the fair value of the assets given as consideration plus equity instruments issued and liabilities incurred or assumed at thedate of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilitiesassumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of anyminority interest. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired isrecorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference isrecognised directly in the income statement.Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealisedlosses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.The financial statements of all subsidiaries are drawn up to the year ended 31 December. Accounting policies of subsidiaries havebeen changed where necessary to ensure consistency with the policies adopted by the Group.2.3 Segment reportingOperating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker.The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments,has been identified as the Chief Executive Officer.2.4 Foreign currency translation(a) Functional and presentation currencyThe consolidated financial statements are presented in euro, which is the functional and presentation currency of the Companyand all of its trading subsidiaries.(b) Transactions and balancesForeign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of thetransactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of suchtransactions and from the translation at year-end exchange rates or monetary assets and liabilities denominated in foreign currenciesare recognised in the income statement, except when deferred in equity as qualifying cash flow hedges.
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annual report 2009
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Financial HighlightsFor the year en
Page 5 and 6: Chairman’s Statement Aer Lingus G
Page 11 and 12: Operating and Financial Review Aer
Page 13 and 14: Board of Directors Aer Lingus Group
Page 15 and 16: Corporate Social Responsibility Sta
Page 29 and 30: Directors’ Report Aer Lingus Grou
Page 35: Directors’ Report Aer Lingus Grou
Page 38 and 39: 36 Directors’ Report Aer Lingus G
Page 41 and 42: Remuneration Committee Report Aer L
Page 43 and 44: Remuneration Committee Report Aer L
Page 45 and 46: Independent Auditors’ Report Aer
Page 47 and 48: Financial Statements Aer Lingus Gro
Page 55: Financial Statements Aer Lingus Gro
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annual report 2009 - Aer Lingus

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