Ryanair 2016 Annual Report Download - page 201

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Notes forming part of the Company Financial Statements
29 Basis of preparation and significant accounting policies
The Company financial statements have been prepared in accordance with International Accounting Standards and
International Reporting Standards (collectively “IFRS”) as adopted by the European Union (EU), which are effective for
the year ended and as at March 31, 2016. In addition to complying with its legal obligation to comply with IFRS as
adopted by the EU, the consolidated financial statements comply with IFRS as issued by the International Accounting
Standards Board (“(IASB”). The consolidated financial statements have also been prepared in accordance with the
Companies Acts, 2014. On publishing parent entity financial statements together with group financial statements the
Company is taking advantage of the exemption contained in Section 304 of the Companies Act, 2014 not to present its
individual income statement, statement of comprehensive income and related notes that form a part of these approved
financial statements.
The Company financial statements are presented in euro millions, 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. In addition
to complying with its legal obligation to comply with IFRS as adopted by the EU, the Company financial statements
comply with IFRS as issued by the IASB. The Company financial statements have also been prepared in accordance with
the Companies Acts, 2014.
The directors have reviewed all new or revised IFRS standards and IFRIC interpretations, effective for future
financial years, 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.