TomTom 2009 Annual Report Download - page 59

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/ 57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OF TOMTOM NV
1. GENERAL
TomTom NV (the “company”) has its statutory seat and headquarters in Amsterdam, the Netherlands. The
activities of the company include the development and sale of location and navigation solutions.
The consolidated financial statements of the company for the year ended 31 December 2009 comprise the company
and its subsidiaries (together referred to as “the group”). In accordance with section 402 of Part 9 of Book 2 of the
Netherlands Civil Code, a condensed income statement is presented in the company Financial Statements.
The financial statements have been prepared by the Board of Management and authorised for issue on
18 February 2010. The financial statements will be submitted for approval to the Annual General Meeting
of Shareholders on 26 April 2010.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these Consolidated Financial Statements are set
out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting
Standards as adopted by the European Union.
The financial statements have been prepared on the historical cost basis, except for financial instruments
(including derivatives) classified as held for trading and derivatives in a hedging relationship, which are stated at
fair value.
Unless otherwise indicated, assets and liabilities are carried at their nominal value. Income and expenses are
accounted for on an accrual basis.
Changes in accounting policies and disclosures
IAS 23 (amended), “Borrowing costs”, effective for reporting periods beginning 1 January 2009 replaces the
previous version. The group previously expensed all borrowing costs, going forward all borrowing costs, if
considered material, on qualifying assets will be capitalised and amortised over the life of the asset. There were
no borrowing costs capitalised in 2009.
IFRS 8, “Operating segments”, effective for reporting periods beginning 1 January 2009 replaces IAS 14,
“Segment reporting” which requires that information is presented on the same basis as for the internal reporting
provided to the chief operating decision-maker (CODM). The CODM has been identified as the Management
Board. The adoption of IFRS 8 has resulted in the separate disclosure of an additional reportable segment within
the former TomTom segment. The Tele Atlas (Licensing) segment is reported consistently with the prior year.
IFRS 7, “Financial instruments – Disclosures” (amendment) – effective for reporting periods beginning 1 January 2009.
The amendment requires enhanced disclosures about fair value measurement and liquidity risk. In particular, the
amendment requires disclosure of fair value measurements by level of a fair value measurement hierarchy. As
the change in accounting policy only results in additional disclosures, there is no impact on our results.
IAS 1 (revised), “Presentation of financial statements” – effective for reporting periods beginning 1 January 2009.
The revised standard requires that for each component of equity a reconciliation is presented between the carrying
amount at the beginning and at the end of the period, and discloses separately the changes resulting from:
– profit and losses
– each item of comprehensive income.
– transactions with owners in their capacity as owners, showing separately contributions by and distributions to
owners, and changes in ownership interests in subsidiaries that do not result in a loss of control.
Comparative information has been re-presented so that it also is in conformity with the revised standard. As the
change in accounting policy only impacts presentation aspects, there is no impact to earnings per share.
The improvements to IFRS include 35 amendments across 20 different standards that largely clarify the required
accounting treatment where previous practice had varied and have resulted in a number of changes in the detail
of the group’s accounting policies. There has been no material impact on the group’s accounting policies as a
result of the amendments included in improvements to IFRS.
Other standards and interpretations effective from 1 January 2009 did not have a material impact on the company.
All other standards and interpretations that were in issue but not yet effective for reporting periods beginning on
1 January 2009 have not yet been adopted. The group anticipates that the adoption of these standards and
interpretations will have no material impact on the financial statements of the group in future periods.