Ryanair 2016 Annual Report Download - page 159

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The following temporary differences are not provided for: (i) the initial recognition of assets and liabilities that
effect neither accounting nor taxable profit and (ii) differences relating to investments in subsidiaries to the extent that it
is probable they will not reverse in the future.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which temporary differences can be utilised. The carrying amounts of deferred tax assets are reviewed at each
balance sheet date and reduced to the extent that it is no longer probable that a sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be realised.
Social insurance, passenger taxes and sales taxes are recorded as a liability based on laws enacted in the
jurisdictions to which they relate. Liabilities are recorded when an obligation has been incurred.
Tax liabilities are based on the best estimate of the likely obligation at each reporting period. These estimates are
subject to revision based on the outcome of tax audits and discussions with revenue authorities that can take several years
to conclude.
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.
Dividend distributions are recognised as a liability in the period in which the dividends are approved by the
Company’s shareholders.
Prospective accounting changes, new standards and interpretations not yet adopted
The following new or revised IFRS standards and IFRIC interpretations will be adopted for purposes of the
preparation of future financial statements, where applicable. Those that are not as yet E.U. endorsed are flagged below.
We do not anticipate that the adoption of these new or revised standards and interpretations will have a material impact
on our financial position or results from operations.
 Amendments to IFRS 11: “Accounting for Acquisitions of Interests in Joint Operations” (effective for fiscal
periods beginning on or after January 1, 2016).
 Amendments to IAS 16 and IAS 38: “Clarification of Acceptable Methods of Depreciation and Amortisation”
effective for fiscal periods beginning on or after January 1, 2016).
 Amendments to IAS 16: “Property, Plant and Equipment” and IAS 41: “Bearer Plants” (effective for fiscal periods
beginning on or after January 1, 2016).
 Amendments to IAS 27: “Equity Method in Separate Financial Statements” (effective for fiscal periods beginning
on or after January 1, 2016).
 Amendments to IAS 1: “Disclosure Initiative” (effective for fiscal periods beginning on or after January 1, 2016).
 “Annual Improvements to IFRSs”. 2012-2014 Cycle (effective for fiscal periods beginning on or after January 1,
2016).
 Amendments to IFRS 10, IFRS 12 and IAS 28: “Investment Entities: Applying the consolidation exception”
(effective for fiscal periods beginning on or after January 1, 2016).*
 IFRS 14: “Regulatory Deferral Accounts” (effective for fiscal periods beginning on or after January 1, 2016).*