Ryanair 2009 Annual Report Download - page 179

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179
Notes forming part of the Company Financial statements
28 Basis of preparation and significant accounting policies
The Company financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union (EU), which are effective for the year ended and
as at March 31, 2009, as applied in accordance with the Companies Acts, 1963 to 2009. On publishing parent
entity financial statements together with group financial statements the Company is taking advantage of the
exemption contained in Section 148(8) of the Companies Act, 1963 not to present its individual income
statement and related notes that form a part of these approved financial statements.
The Company financial statements are presented in Euro, rounded to the nearest thousand, being its
functional currency. They are prepared on an historical cost basis except for certain share based payment
transactions, which are based on fair values determined at grant date.
The preparation of financial statements in conformity with IFRS requires management to make
judgements, estimates and assumptions that affect the application of policies and reported amounts of assets,
liabilities, income and expenses. These estimates and associated assumptions are based on historical experience
and various other factors believed to be reasonable under the circumstances, the results of which form the basis
of making the judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ materially from these estimates. These underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is
revised if the revision affects only that period, or in the period of the revision and future periods if these are also
affected. Principal sources of estimation uncertainty have been set out in the critical accounting policy section
in note 1 to the consolidated financial statements. Such uncertainties may impact the carrying value of
investments in subsidiaries at future dates.
Statement of compliance
The Company financial statements have been prepared in accordance with IFRS as adopted by the EU,
which are effective at March 31, 2009 as applied in accordance with the Companies Acts, 1963 to 2009.
The directors have reviewed all EU endorsed IFRSs as set forth in Note 1 to the consolidated financial
statements, and have concluded their adoption will not have a significant impact on the parent entity financial
statements.
Share-based payments
The Company accounts for the fair value of share options granted to employees of a subsidiary as an
increase in its investment in that subsidiary. The fair value of such options is determined in a consistent manner
to that set out in the Group share-based payment accounting policy and as set out in Note 15 (c) to the
consolidated financial statements.
Income taxes
Income taxes are accounted for by the Company in a manner consistent to that set out in the Group income
tax accounting policy.
Financial assets
The Company holds investments in subsidiary companies, which are carried at cost less any impairments.
Guarantees
The Company occasionally guarantees certain liabilities of subsidiary companies. These are considered to
be insurance arrangements and are accounted for as such i.e. a contingent liability until such time as it becomes
probable that the Company will be required to make a payment under the guarantee.