Ryanair 2004 Annual Report Download - page 26

The following accounting policies have been applied consistently in dealing with
items which are considered material in relation to the group’s financial statements.
These financial statements are prepared in accordance with generally accepted
accounting principles (GAAP) in the UK and Ireland, under the historical cost
convention and comply with financial reporting standards of the Accounting
Standards Board, as promulgated by the Institute of Chartered Accountants in
Ireland. Where possible, however, financial information has also been presented in
accordance with the presentation and terminology of United States (US) GAAP
except where such presentation is not consistent with Irish and UK GAAP. A
summary of the significant differences between Irish and UK GAAP and US GAAP
as applicable to the group is set out on pages 63 to 73
Statement of Accounting Policies
26
A N N U A L R E P O RT & F I N A N C I A L S T A T E M E N T S 2 0 0 4
Basis of Preparation
The preparation of the financial statements in conformity with
generally accepted accounting principles inIreland and theUK
requires the use of management estimates and assumptions
that affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities and the reported
amounts of revenues and expenses. Actual results could differ
from these estimates.
The consolidated financial statements are prepared in Euro.
Basis of Consolidation
The group’s consolidated financial statements comprise the
financial statements of Ryanair Holdings plc and its subsidiary
undertakings for the year ended March 31, 2004.
The results of subsidiary undertakings acquired or disposed of
in the period are included in the consolidated profit and loss
account from the date of acquisition or up to the date of
disposal. Upon the acquisition of a business, fair values are
a tt r i b u ted to the se p a rable net assets acq u i red. In the
company’s financial statements, investments in subsidiary
undertakings are stated at cost less any amounts written off.
A separate profit and loss account for the company is not
presented, as provided by Section 3(2) of the Companies
(A m e n d m e n t) Act 1986. The retained profit for the yea r
attributable to the company was Nil (2003: Nil).
Goodwill
With effect from April 1, 1998, purchased goodwill, being the
excess of the consideration over the fair value of net assets
a cq u i re d at the date of acq u i s i t i o n , is ca p i ta l i se d a n d
amortised over its estimated useful economic life, currently
considered to approximate to 20 years. Purchased goodwill
arising prior to that date was written off immediately against
rese rves and was not re i n sta ted on implementation of
Financial Reporting Standard 10 - Goodwill and Intangible
Assets (FRS 10)aspermitted by that standard.
Revenues
Scheduled revenues comprise the invoiced value of airline and
other services, net of government taxes. Revenue from the
sale of flight seats is recognised in the period in which the
service is provided. Unearned revenue represents flight seats
sold but not yet flown and is included in accrued expenses and
other liabilities. It is released to the profit & loss account as
passengers fly. Unused tickets are recognised as revenue on a
systematic basis. Miscellaneous fees charged forany changes
to flighttickets are recognisedas revenueimmediately.
Ancillary revenues are recognised in the profit and loss
account inthe periodthe ancillary services are provided.