Ryanair 2010 Annual Report Download - page 160

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158
10 Accrued expenses and other liabilities
At March 31,
2010 2009 2008
1M 1M 1M
Accruals................................................................................................
......
260.3 226.4 283.4
Taxation................................................................................................
......
282.3 231.9 231.0
Unearned revenue................................................................
.......................
545.6 447.5 405.0
1,088.2 905.8 919.4
Taxation comprises:
2010 2009 2008
1M 1M 1M
PAYE (payroll taxes)................................................................
..................
4.3 3.9 5.3
Value added tax ................................................................
..........................
1.7 - -
Other tax (principally air passenger duty)................................
...................
276.3 228.0 225.7
282.3 231.9 231.0
11 Financial instruments and financial risk management
The Company utilises financial instruments to reduce exposures to market risks throughout its
business. Borrowings, cash and cash equivalents and liquid investments are used to finance the Company’s
operations. Derivative financial instruments are contractual agreements with a value that reflects price
movements in an underlying asset. The Company uses derivative financial instruments, principally jet fuel
derivatives, interest rate swaps and forward foreign exchange contracts to manage commodity risks, interest rate
risks and currency exposures and achieve the desired profile of borrowings and leases. It is the Company’s
policy that no speculative trading in financial instruments shall take place.
The main risks attaching to the Company’s financial instruments, the Company’s strategy and approach to
managing these risks, and the details of the derivatives employed to hedge against these risks have been
disclosed in Note 5 to the consolidated financial statements.
(a) Financial assets and financial liabilities – fair values
The carrying value and fair value of the Company’s financial assets by class and measurement category
at March 31, 2010, 2009 and 2008 were as follows:
Available
For Sale
Cash-Flow
Hedges
Fair-Value
Hedges
Loans and
Receivables
Total
Carrying
Value
Total Fair
Value
1M 1M 1M 1M 1M 1M
At March 31, 2010
Available-for-sale financial assets
............
116.2 - - - 116.2 116.2
Cash and cash equivalents
........................
- - - 1,477.9 1,477.9 1,477.9
Financial asset: cash > 3 months
...............
- - - 1,267.7 1,267.7 1,267.7
Restricted cash................................
..........
- - - 67.8 67.8 67.8
Derivative financial instruments
- U.S. dollar currency forward
contracts................................
....................
- 99.8 - - 99.8 99.8
- U.K. pounds sterling currency forward
contracts….……………………………...
- 3.0 - - 3.0 3.0
- Jet fuel derivative contracts
....................
- 42.6 - - 42.6 42.6
Trade receivables................................
......
- - - 44.3 44.3 44.3
Total financial assets at March 31,
2010................................
..........................
116.2 145.4 - 2,857.7 3,119.3 3,119.3