Aer Lingus 2013 Annual Report Download - page 104

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102
As at 31 December 2012
Related Amounts Not Offset
Gross
Financial
Assets
Gross
Financial
Liabilities
Offset
Net
Amounts
Presented
Financial
Instruments
Cash
Collateral
Received
Net Amount
€000's
€000's
€000's
€000's
€000's
€000's
Derivative Financial Assets
5,546
-
5,546
(2,470)
-
3,076
Derivative Financial Liabilities
As at 31 December 2013
Related Amounts Not Offset
Gross
Financial
Liabilities
Gross
Financial
Assets
Offset
Net
Amounts
Presented
Financial
Instruments
Cash
Collateral
Pledged
Net Amount
€000's
€000's
€000's
€000's
€000's
€000's
Derivative Financial Liabilities
14,489
-
14,489
(4,664)
-
9,825
As at 31 December 2012
Related Amounts Not Offset
Gross
Financial
Liabilities
Gross
Financial
Assets
Offset
Net
Amounts
Presented
Financial
Instruments
Cash
Collateral
Pledged
Net Amount
€000's
€000's
€000's
€000's
€000's
€000's
Derivative Financial Liabilities
12,066
-
12,066
(2,470)
-
9,596
4 Critical accounting estimates and judgements
The Group believes that of its significant accounting policies and estimates, the following may involve a higher degree of judgement and
complexity:
(a) Provisions
The Group makes provisions for legal and constructive obligations which are outstanding at the reporting date. These provisions are made
based on historical or other relevant information, adjusted for recent trends where appropriate. However, provisions represent estimates of
the financial costs of events that may not occur for some years. Measurement uncertainty associated with aircraft maintenance provisions
also arises from the timing and nature of overhaul activity required and sensitivity in projected flight hours. As a result of this and the level
of uncertainty attaching to the final outcomes, the actual results may differ significantly from those estimated.
(b) Post employment benefits – Irish Airlines (General Employees) Superannuation Scheme and the Irish Airlines (Pilots’) Superannuation
Scheme (collectively the “Irish pension schemes”)
As the provisions of the trust deeds governing the Irish Pension Schemes are such that no changes to the contribution rates are possible
without the prior consent of Aer Lingus Limited, this company has concluded that it has no obligation, legal or constructive, to increase its
contributions beyond those levels. As such, it has accounted for the Irish Pension Schemes as defined contribution schemes under the
provisions of IAS 19 Employee Benefits (Revised) (“IAS 19R”), and, as a result, does not recognise any surplus or deficit in the schemes in
the statement of financial position.
If any legal or constructive obligation to vary the Company’s contributions based on the funding status of the Irish Pension Schemes were to
arise, IAS 19R would require the Company to include any pension fund surplus or deficit on its statement of financial position and reflect
any period on period movements in its income statement or the statement of comprehensive income.
Refer to Note 25 for further detail.
(c) Impairment of non-financial assets
Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell and value in use. For the purpose of
assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).