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51
AER LINGUS GROUP PLC - ANNUAL REPORT 2008
• AmendmenttoIAS28Investments in associates (and consequential amendments to IAS 32 Financial Instruments: Presentation,
and IFRS 7 Financial Instruments: Disclosures) (effective for accounting periods beginning on or after 1 January 2009). The
amendment is part of the IASB’s annual improvements project published in May 2008. An investment in associate is treated
as a single asset for the purposes of impairment testing. Any impairment loss is not allocated to specific assets included within
the investment, for example, goodwill. Reversals of impairment are recorded as an adjustment to the investment balance to the
extent that the recoverable amount of the associate increases. The Group will apply the amendment to IAS 28 to impairment
tests related to investments in associates and any related impairment losses from the effective date.
• IAS28Investments in Associates (and consequential amendments to IAS 32 Financial Instruments: Presentation and IFRS 7
Financial instruments: Disclosures) (effective for accounting periods beginning on or after 1 January 2009). The amendment
is part of the IASB’s annual improvements project published in May 2008. Where an investment in associate is accounted
for in accordance with IAS 39 Financial Instruments: Recognition and Measurement, only certain rather than all disclosure
requirements in IAS 28 need to be made in addition to disclosures required by IAS 32 and IFRS 7. The Group will apply the
amendment from the effective date, however it is not expected to have an impact on the Group’s financial statements.
• AmendmenttoIAS29Financial Reporting in Hyperinflationary Economies (effective for accounting periods beginning on or after
1 January 2009). The amendment is part of the IASB’s annual improvements project published in May 2008. The guidance has
been amended to reflect the fact that a number of assets and liabilities are measured at fair value rather than historical cost.
The amendment to IAS 29 will not have an impact on the Group’s operations, as none of the Group’s subsidiaries operate in
hyperinflationary economies.
• AmendmenttoIAS31Interests in Joint Ventures (and consequential amendments to IAS 32 Financial Instruments: Presentation
and IFRS 7 Financial instruments: Disclosures) (effective for accounting periods beginning on or after January 2009). The
amendment is part of the IASB’s annual improvements project published in May 2008. Where an investment in joint venture
is accounted for in accordance with IAS 39 Financial Instruments: Recognition and Measurement, only certain rather than all
disclosure requirements in IAS 31 need to be made in addition to disclosures required by IAS 32 and IFRS 7. The Group will
apply the amendment from the effective date, however it is not expected to have an impact on the Group’s financial statements.
• AmendmenttoIAS32Financial Instruments: Presentation, and IAS 1 Presentation of Financial Statements – Puttable financial
instruments and obligations arising on liquidation (effective for accounting periods beginning on or after 1 January 2009). The
amended standards require entities to classify puttable financial instruments and instruments, or components of instruments
that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on
liquidation as equity, provided the financial instruments have particular features and meet specific conditions. The Group will
apply the amendments to IAS 32 and IAS 1 from the effective date and is currently assessing the impact on the Group’s financial
statements.
• AmendmenttoIAS36Impairment of Assets (effective for accounting periods beginning on or after 1 January 2009). The
amendment is part of the IASB’s annual improvements project published in May 2008. Where fair value less costs to sell is
calculated on the basis of discounted cash flows, disclosures equivalent to those for value-in-use calculation should be made.
The Group will apply the amendment to IAS 36 and provide the required disclosures where applicable for impairment tests from
the effective date.
• AmendmenttoIAS38Intangible Assets (effective for accounting periods beginning on or after 1 January 2009). The amendment
is part of the IASB’s annual improvements project published in May 2008. A prepayment may only be recognised in the event
that payment has been made in advance of obtaining right of access to goods or receipt of services. The Group will apply the
amendment to IAS 38 prospectively to prepayments made from the effective date.
• AmendmenttoIAS38Intangible assets (effective for accounting periods beginning on or after 1 January 2009). The amendment
is part of the IASB’s annual improvements project published in May 2008. The amendment deletes the wording that states that
there is ‘rarely, if ever’ support for use of a method that results in a lower rate of amortisation than the straight-line method. The
amendment will not have an impact on the Group’s operations, as all intangible assets are amortised using the straight-line
method.
• AmendmenttoIAS39Financial Instruments: Recognition and Measurement (effective for accounting periods beginning on or
after 1 January 2009). The amendment is part of the IASB’s annual improvements project published in May 2008.