Aer Lingus 2008 Annual Report Download - page 51

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AER LINGUS GROUP PLC - ANNUAL REPORT 2008
to measure the initial cost of investments in subsidiaries, jointly controlled entities and associates in the separate financial
statements. The amendment also removes the definition of the cost method from IAS 27 and replaces it with a requirement
to present dividends as income in the separate financial statements of the investor. The amendment will not have any impact
on the Group’s financial statements.
• AmendmenttoIFRS2Share based Payment (effective for accounting periods beginning on or after 1 January 2009). The
amended standard deals with vesting conditions and cancellations. It clarifies that vesting conditions are service conditions and
performance conditions only. Other features of a Share based payment are not vesting conditions. These features would need
to be included in the grant date fair value for transactions with employees and others providing similar services; they would not
impact the number of awards expected to vest or valuation thereof subsequent to grant date. All cancellations, whether by the
entity or by other parties, should receive the same accounting treatment. The Group will apply this amendment from the effective
date, but it is not expected to have a significant impact on the Group’s financial statements.
• IFRS3(Revised)Business Combinations (effective for accounting periods beginning on or after 1 July 2009). The revised
standard continues to apply the acquisition method to business combinations, with some significant changes. For example, all
payments to purchase a business are to be recorded at fair value at the acquisition date, with contingent payments classified
as debt subsequently re-measured through the income statement. There is a choice on an acquisition-by-acquisition basis to
measure the non-controlling interest in the acquiree either at fair vale or at the non-controlling interest’s proportionate share of the
acquiree’s net assets. All acquisition-related costs should be expensed. The Group will apply IFRS 3 (Revised) from the effective
date for any future acquisitions.
• AmendmenttoIFRS5Non-current Assets Held for Sale and Discontinued Operations (and consequential amendment to IFRS 1
First-time adoption of International Financial Reporting Standards) (effective for accounting periods beginning on or after 1 July
2009). The amendment is part of the IASB’s annual improvements project published in May 2008. The amendment clarifies
that all of a subsidiary’s assets and liabilities are classified as held for sale if a partial disposal sale plan results in loss of control.
Relevant disclosure should be made for this subsidiary if the definition of a discontinued operation is met. A consequential
amendment to IFRS 1 states that these amendments are applied prospectively from the date of transition to IFRS. The Group will
apply the amendment to IFRS 5 prospectively to all partial disposals of subsidiaries from the effective date.
• IFRS8Operating Segments (effective for accounting periods beginning on or after 1 January 2009). IFRS 8 sets out the
requirements for disclosure of financial and descriptive information about an entity’s operating segments and also about the
entity’s products and services, the geographical areas in which it operates, and its major customers. The IFRS replaces IAS 14
Segment Reporting. The Group will apply IFRS 8 from the effective date and is currently considering the impact of this standard
on its disclosures.
• IAS1Presentation of Financial Statements (effective for accounting periods beginning on or after 1 January 2009). The revised
standard will prohibit the presentation of items of income and expenses (that is, ‘non-owner changes in equity’) in the statement
of changes in equity, requiring ‘non-owner changes in equity’ to be presented separately from owner changes in equity. All non-
owner changes in equity will be required to be shown in a performance statement, but entities can choose whether to present
one performance statement (the statement of comprehensive income) or two statements (the income statement and statement
of comprehensive income). Where entities restate or reclassify comparative information, they will be required to present a
restated balance sheet as at the beginning of the comparative period in addition to the current requirement to present balance
sheets at the end of the current period and comparative period. The Group will apply the revised IAS 1 from the effective date
and is currently assessing the impact on the Group’s financial statements.
• AmendmenttoIAS1Presentation of Financial Statements (effective for accounting periods beginning on or after 1 January
2009). The amendment is part of the IASB’s annual improvements project published in May 2008. The amendment clarifies that
some rather than all financial assets and liabilities classified as held for trading in accordance with IAS 39, Financial instruments:
Recognition and measurement are examples of current assets and liabilities respectively. The Group will apply the amendment to
IAS 1 from the effective date, however it is not expected to have an impact on the Group’s financial statements.
• AmendmenttoIAS16Property, Plant and Equipment (and consequential amendment to IAS 7 Statement of Cash Flows)
(effective for accounting periods beginning on or after 1 January 2009). The amendment is part of the IASB’s annual
improvements project published in May 2008. Entities whose ordinary activities comprise renting and subsequently selling assets
present proceeds from the sale of those assets as revenue and should transfer the carrying amount of the asset to inventories