EasyJet 2015 Annual Report Download - page 125

Download and view the complete annual report

Please find page 125 of the 2015 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 130

  • 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

Strategic report Governance Accounts
121
www.easyJet.com
Notes to the company accounts
a) Significant accounting policies
The significant 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 £221 million (2014: £667 million). Included in this
amount are cash dividends received of £199 million (2014: £650 million – in-specie), 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, other than the profit for each year.
The Company has eight employees at 30 September 2015 (2014: ten). These are the Non-Executive Directors of easyJet plc; their
remuneration is paid by easyJet Airline Company Limited. The Executive Directors of easyJet plc are employed and 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 64 to 80.
c) Investments in subsidiary undertakings
Investments in subsidiary undertakings were as follows:
2015
£ million 2014
£ million
At 1 October 309 286
Capital contributions to subsidiaries 18 23
Allotment and issue of shares by subsidiaries 551 –
At 30 September 878 309
A full list of Group companies are detailed below.
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
Dawn Licensing Holdings Limited Malta Holding company 100
Dawn Licensing Limited Malta Graphic design 100
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 in 2016 to acquire the remaining 51%. easyJet
Switzerland S.A. is 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 consolidated 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.