Ryanair 2006 Annual Report Download - page 57

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(Continued)
Notes 57
ANNUAL REPORT & FINANCIAL STATEMENTS 2006
18 AIRCRAFT RENTALS AND OTHER EXPENSES
(a) Aircraft rentals-Purchase Accounting Adjustment
Subsequent to the acquisition of Buzz Stansted Ltd. in April 2003 Ryanair renegotiated the terms and conditions of certain onerous
leases and agreed to return the aircraft to the lessors in late 2004, thereby releasing Ryanair from any remaining lease obligations
at that time. IFRS 3 only allows an adjustment to the provisional values of assets and liabilities acquired in the 12 month period
following the acquisition, and accordingly as the event occurred more than 12 months after the acquisition date, this resulted in
an exceptional credit to the income statement for the year to March 31, 2005 of 11.9m. This amount is included as a reduction
to aircraft rentals in the 2005 Income Statement.
(b) Other expenses-Insurance Claim
Included in the income statement for the year to March 31, 2006 is an exceptional credit of 5.2m (net of tax) arising from the
settlement of an insurance claim for the scribing of 6 Boeing 737-200 aircraft. This credit has been included as a reduction to
other insurance expenses in the 2006 Income Statement.
19 STATUTORY AND OTHER INFORMATION
2006 2005
000 000
Directors
Fees265 280
Other emoluments, including consultancy fees, bonus and pension contributions 877 726
Depreciation of owned tangible fixed assets 120,877 110,063
Depreciation of tangible fixed assets held under finance leases 3,528 294
Auditors’ remuneration - audit (i) 213 196
- audit related (ii) 67 39
- tax services (iii) 188 232
Operating lease charges 47,376 33,471
(i) Audit services include audit work performed on the consolidated financial statements, as well as work that generally only the independent auditor can reasonably
be expected to provide, including comfort letters, statutory audits, and discussions surrounding the proper application of financial accounting and/or reporting
standards.
(ii) Audit related services are for assurance and related services that are traditionally performed by the independent auditor, including due diligence related to mergers
and acquisitions, employee benefit plan audits, and special procedures required to meet certain regulatory requirements.
(iii) Tax services include all services, except those services specifally related to the audit of financial statements, performed by the independent auditor’s tax personnel,
including tax analysis; supporting other tax-related regulatory requirements; and tax compliance and reporting
None of the statutory disclosures given above impact on the parent company financial statements. Audit and directors fees are
all met by Ryanair Limited, the group’s principal subsidiary.