EasyJet 2014 Annual Report Download - page 135

Download and view the complete annual report

Please find page 135 of the 2014 EasyJet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

Accounts & other information
www.easyJet.com 133
a) Significant accounting policies
The accounting policies applied in the preparation of these Company accounts are the same as those set out in note 1 to the
consolidated accounts with the addition of the following.
Investments
Investments in subsidiaries are stated at cost, less any provision for impairment. Where subsidiary undertakings incur charges
for share-based payments in respect of share options and awards granted by the Company, a capital contribution in the
same amount is recognised as an investment in subsidiary undertakings with a corresponding credit to shareholders’ equity.
b) Income statement and statement of total comprehensive income
In accordance with Section 408 of the Companies Act 2006, the Company is exempt from the requirement to present
its own income statement and statement of comprehensive income. The Company’s profit for the year was £667 million
(2013: £34 million). Included in this amount are in-specie dividends received of £650 million (2013: £40 million – cash), which
are recognised when the right to receive payment is established. The Company recognised no other income or expenses in
either the current or prior year.
The Executive Directors of easyJet plc are employed by easyJet Airline Company Limited. The Company has 10 employees at
30 September 2014 (2013: eight). These are the Non-Executive Directors of easyJet plc; their remuneration is paid by easyJet
Airline Company Limited. Details of Directors' remuneration are disclosed in note 4 to the consolidated accounts and in the
Directors' remuneration report on pages 71 to 88.
c) Investments in subsidiary undertakings
Investments in subsidiary undertakings were as follows:
2014
£ million
2013
£ million
At 1 October 286 283
Capital contributions to subsidiaries 23 18
Capital distributions made by subsidiaries – (15)
At 30 September 309 286
The companies listed below are those which, in the opinion of the Directors, principally affect the results, cash flows or financial
position shown in the consolidated accounts.
A full list of Group companies will be included in the Company’s next annual return, in accordance with Section 410 of the
Companies Act 2006.
Country of incorporation Principal activity
Percentage of
ordinary shares held
easyJet Airline Company Limited England and Wales Airline operator 100
easyJet Switzerland S.A. Switzerland Airline operator 49
easyJet Sterling Limited (1) Cayman Islands Aircraft trading and leasing 100
easyJet Leasing Limited (1) Cayman Islands Aircraft trading and leasing 100
(1) Although these companies are Cayman Islands incorporated they have always been, and continue to be, UK tax resident.
The Company has a 49% interest in easyJet Switzerland S.A. with an option that expires on 30 June 2015 to acquire the
remaining 51%. Unless this option is terminated by written agreement before that date, it shall be tacitly renewed for a further
year. easyJet Switzerland S.A. is consolidated as a subsidiary on the basis that the Company exercises a dominant influence
over the undertaking. A non-controlling interest has not been reflected in the accounts on the basis that holders of the
remaining 51% of the shares have no entitlement to any dividends from that holding and the Company has an option to
acquire those shares for a predetermined minimal consideration.