Ryanair 2008 Annual Report Download - page 55

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Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of
ordinary shares and share options are recognised as a deduction from equity, net of any tax effects. When
share capital recognised as equity is repurchased, the amount of consideration paid, which includes any
directly attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased
shares are classified as treasury shares and are presented as a deduction from total equity, until they are
cancelled.
Prospective accounting changes, new standards and interpretations not yet adopted
The following legislative changes and new accounting standards or amendments to accounting
standards, which are not yet effective and have not been adopted in these consolidated financial statements,
will impact the Group’s financial reporting in future periods. If applicable, they will be adopted in future
consolidated financial statements.
• Amendment to IFRS 2 – Share-based payments: vesting conditions and cancellations (effective
January 1, 2009). This amendment clarifies the accounting treatment of cancellations and vesting
conditions. The introduction of this amendment will impact the Group’s reporting although this
impact is not expected to be significant.
• IFRS 3 (Revised) – Business Combinations (effective July 1, 2009). This standard deals with how
an acquirer recognises, measures and discloses in its financial statements the identifiable assets
acquired, the liabilities assumed and any non-controlling interest in the acquiree. The objective is to
enable users of the financial statements to evaluate the nature and financial effects of the business
combination. The impact on the Group will be dependent on the nature of any future acquisition.
• IFRS 8 – Operating Segments was issued in November 2006 replacing IAS 14, Segmental Reporting
(effective January 1, 2009). IFRS 8 changes the basis for identifying operating segments. It
requires identification of operating segments on the basis of internal reports that are regularly
reviewed by the entity’s chief operating decision maker in order to allocate resources to the segment
and assess its performance. IAS 14 required identification of two sets of segments - one based on
related products and services, and the other on geographical areas. IFRS 8 instead requires
additional disclosures around identifying segments and their products and services. The introduction
of this Standard is likely to impact segmental reporting although this is not expected to be
significant.
• Amendment to IAS 1, Presentation of Financial Statements – a revised presentation (effective
January 1, 2009). This amendment sets overall requirements for the presentation of financial
statements, guidelines for their structure and minimum requirements for their content. IAS 1 will
impact on the presentation of the financial statements of the Group, however, this is not expected to
be significant.
• Amendment to IAS 23 - Borrowing costs (effective January 1, 2009). This standard requires an
entity to capitalise borrowing costs, which are directly attributable to the acquisition, construction or
production of a qualifying asset, as part of the cost of that asset. The impact on Group reporting is
not expected to be significant.
• Amendment to IAS 27 – Consolidated and Separate Financial Statements (effective July 1, 2009).
The objective of this amendment is to enhance the relevance, reliability and comparability of the
information that a parent entity provides in its separate financial statements and in its consolidated
financial statements for a group of entities under its control. The introduction of this amendment
will impact Group reporting although this is not expected to be significant.