TomTom 2015 Annual Report Download - page 77

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CONSOLIDATED FINANCIAL STATEMENTS
TOMTOM / ANNUAL REPORT AND ACCOUNTS 2015 / 76
SECTION 1: GENERAL INFORMATION
AND BASIS OF REPORTING
This section introduces the basis of preparation and the general accounting policy applied to the consolidated
financial statements as a whole, as well as a summary of the areas that involve significant judgements and
estimates.
1. GENERAL
TomTom N.V. (the company) has its statutory seat and
headquarters in Amsterdam, the Netherlands. The activities of
the company include the development and sale of navigation and
location-based solutions, which include among others: PNDs,
sport watches, action cameras, maps, traffic, navigation software
and fleet management services.
The consolidated financial statements comprise the company
and its subsidiaries (together referred to as the group). A
condensed income statement is presented in the company
financial statements in accordance with section 402 of Part 9 of
Book 2 of the Dutch Civil Code.
The financial statements have been prepared by the
Management Board and authorised for issue on 9 February 2016.
The financial statements will be submitted for approval to the
General Meeting on 22 April 2016.
2. BASIS OF PREPARATION
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
(IFRS) and IFRIC interpretations as adopted by the European
Union.
The financial statements have been prepared on the historical
cost basis, except for financial instruments (including
derivatives) classified at fair value through profit or loss and
derivatives used for hedging, which are stated at fair value.
Income and expenses are accounted for on an accrual basis.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICY
The general accounting policies applied to the consolidated
financial statements as a whole are described below, while other
significant accounting policies related to specific line items are
described under the relevant note. The description of accounting
policy in the notes forms an integral part of the description of the
accounting policies in this section. Unless otherwise stated,
these policies have been consistently applied to all the years
presented.
NEW ACCOUNTING STANDARDS AND
DEVELOPMENTS
To the extent relevant, all IFRS standards and interpretations
including amendments that were in issue and effective from 1
January 2015, have been adopted by the group from 1 January
2015. These standards and interpretations had no material
impact for the group. All IFRS standards and interpretations that
were in issue but not yet effective for reporting periods
beginning on 1 January 2015 have not yet been adopted.
CHANGE IN ESTIMATES
In 2015, the group changed its estimate of the expected useful life
of its new generation navigation technology to better reflect the
longer time period the technology is expected to be deployed.
This change resulted in lower amortisation charge of
approximately €8 million for 2015.
BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial
statements of the company and entities controlled either directly
or indirectly by the company.