Ryanair 2004 Annual Report Download - page 73

(g) New US accounting pronouncements
In December 2003, the Financial Accounting Standards Board “FASB” issued Interpretation No. 46, “Revised-Consolidation of
Variable Interest Entities, an Interpretation of ARB No. 51” (”FIN 46R”). FIN 46R addresses the consolidation of variable interest
entities (”VIEs”), which includes entities that have one or more of the following characteristics: (1) The equity investment at risk
is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (2) The equity
investors lack essential characteristics of a controlling financial interest (as defined by FIN 46R); and (3) The equity investors have
voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on
behalf of an investor with a disproportionally small voting interest. In addition, FIN 46R provides for certain scope exceptions to
its application. Adoption of this Interpretation is required in financial statements that have interests in VIEs or potential VIEs,
commonly referred to as special-purpose entities, for periods ending after December 15, 2003. Application for all other types of
entities is required in financial statements for periods ending after March 15, 2004. The adoption of FIN46R has not had a material
impact on the group’s financial statements.
In May 2003, the FASB issued SFAS No. 150, “Accounting for Certain Financial instruments with Characteristics of both Liabilities
and Equity”. SFAS No. 150 establishes standards for how an issuer classifies and measures certain financial instruments with
characteristics of both liabilities and equity. It requires that an issuer classify a financial instrument that is within its scope as a
liability (or an asset in some circumstances). Many of those instruments were previously classified as equity. SFAS No. 150 is
effective for financial instruments entered into or modified after May 31, 2003, and otherwise is effective at the beginning of the
first interim period beginning after June 15, 2003, except for certain mandatorily redeemable financial instruments or non-public
utilities. The adoption of SFAS No. 150 did not impact on the group’s financial statements.
In April 2003, the FASB issued SFAS Statement No. 149, “Amendment of Statement 133 on Derivative Instruments and Hedging
Activities” (“SFAS No. 149”), which amends SFAS Statements No. 133, to address (1) decisions reached by the Derivatives
Implementation Group, (2) developments in other FASB projects that address financial instruments, and (3) implementation issues
related to the definition of a derivative. SFAS No. 149 has multiple effective date provisions depending on the nature of the
amendments to SFAS No. 133. SFAS No. 149 did not have a material impact on the group’s results for the year.
In December 2003, the FASB issued SFAS Statement No. 132 (revised) ”Employers’ Disclosures about Pensions and Other
Postretirement Benefits” (“SFAS No. 132 (revised)”). SFAS No. 132 (revised) revises employers’ disclosures about pension plans
and other postretirement benefit plans. It does not change the measurement or recognition of those plans. SFAS No. 132 retains
and revises the disclosure requirements contained in the original SFAS No. 132. It also requires additional disclosures about the
assets, obligations, cash flows, and net periodic benefit cost of defined benefit pension plans and other postretirement benefit
plans. The Statement generally is effective for fiscal years ending after December 15, 2003. The additional disclosure required by
SFAS No. 132 have been included within the US GAAP pensions disclosures provided within this section of the annual report.
(Continued)
Summary of differences between Irish, United Kingdom and
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