Ryanair 2004 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 2004 Ryanair 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 74

  • 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

(iv) Pensions (continued)
The expected returnon plan assets of 7.75% wasbased on theassumptions of the following returnsfrom each asset class:
2004 %
Equities 8.50
Bonds 5.50
Property/Other 7.50
Cash 3.25
Assumptions used to determine projected benefit obligation
2004 2003
%%
Discount rate 5.00 5.25
Rate of compensationincrease 3.50 3.50
Benefitpaymentsfromthe planare expected to beless than 3% of the liabilities in each of the next ten years.
Ryanair expects to pay 900,000 to theplan during the year ended March 31, 2005.
The plan assets are invested in a passively managed unit trust that is invested primarily in a range of eurozone and
internationalequities, bonds, property and cash. The asset allocationis normallywithin the following ranges:
%
Equities 50-80
Bonds 10-40
Property 5-15
Cash 0-10
(v) Employment grants
Under Irish and UK GAAP, employment grants paid by an Irish government agency are recognised in the profit and loss account upon
receipt and a contingent liability is disclosed for amounts which may become repayable in certain predefined circumstances. Under
US GAAP, these revenues are recognised in the profit and loss account over the period for which minimum employment levels apply
under the terms of the agreement and the unamortised balance is treated as deferred income.
(Continued)
Summary of differences between Irish, United Kingdom and
United States generally accepted accounting principles
66
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