Ryanair 2009 Annual Report Download - page 141

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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 Company’s financial reporting in future periods. To the extent applicable, they will be adopted in
future consolidated financial statements.
m) IFRS 3 (Revised), “Business Combinations” (together with Amended IAS 27, “Consolidated and
Separate Financial Statements”) (effective for new acquisitions occurring in financial years
beginning on or after July 1, 2009). These standards 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 Company will be dependent on the nature of any future acquisitions.
n) IFRS 8, “Operating Segments” was issued in November 2006 replacing IAS 14, “Segmental
Reporting” (effective for fiscal periods beginning on or after 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 segments and assess their 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 the
Company’s segmental reporting although this impact is not expected to be significant.
o) IAS 23, “Borrowing Costs” (revised March 2007 and effective for fiscal periods beginning on or
after 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 the Company’s reporting is not expected to be significant.
p) Amendment to IFRS 2, “Share-based payments: vesting conditions and cancellations” (effective
for fiscal periods beginning on or after January 1, 2009). This amendment clarifies the accounting
treatment of cancellations and vesting conditions. The introduction of this amendment will impact
the Company’s reporting although this impact is not expected to be significant.
q) Amendment to IAS 1, “Presentation of Financial Statements – a revised presentation” (effective
for fiscal periods beginning on or after 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 the presentation of the financial
statements of the Company, however, this impact is not expected to be significant.
r) Amendment to IAS 27, “Consolidated and Separate Financial Statements” (effective for fiscal
periods beginning on or after July 1, 2009). The objective of this amendment (already discussed
above in the specific context of acquisitions) 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 the Company’s reporting although this impact is not
expected to be significant.
s) Amendment to IAS 32, “Puttable Financial Instruments and Obligations arising on Liquidation”
and IAS 1 –(effective for fiscal periods beginning on or after January 1, 2009). This amendment