Ardagh Glass Finance plc - Irish Stock Exchange

BASIS OF PREPARATION
The consolidated non-statutory financial statements of AGHL have been prepared in accordance
with International Financial Reporting Standards (‘‘IFRS’’) as adopted by the European Union (‘‘EU’’)
and International Financial Reporting Interpretations Committee (‘‘IFRIC’’) interpretations as adopted
by the EU. IFRS is comprised of standards and interpretations approved by the International
Accounting Standards Board (‘‘IASB’’) and International Accounting Standards and interpretations
approved by the predecessor International Accounting Standards Committee that have been
subsequently approved by the IASB and remain in effect.
IFRS as adopted by the EU differ in certain respects from IFRS as issued by the IASB.
References to IFRS hereafter should be construed as references to IFRS as adopted by the EU.
The Financial Statements, which are presented in euro rounded to the nearest thousand, have
been prepared under the historical cost convention except for the following:
• derivative financial instruments are stated at fair value
• available-for-sale financial assets are stated at fair value
• pension obligations are measured at the present value of the future estimated cash flows related
to benefits earned and pension assets are valued at fair value
• share-based payment expense is measured at the fair value of the awards at the date of grant.
The preparation of financial information in conformity with IFRS requires the use of critical
accounting estimates and assumptions that affect the reported amounts of assets and liabilities and
income and expenses. It also requires management to exercise judgement in the process of applying
Group accounting policies. These estimates, assumptions and judgements are based on historical
experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances and are subject to continual re-evaluation. However, actual outcomes may
differ from those estimates. The areas involving a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to the consolidated financial information are discussed
in the critical accounting judgements and estimates note 1.
Standards, amendments and interpretations effective in 2008 but not relevant
The following standards, amendments and interpretations to published standards are mandatory for
accounting periods beginning on or after 1 January 2008 but they are not relevant to the Group’s
operations:
IFRIC 12, ‘‘Service concession arrangements’’
IFRIC 13, ‘‘Customer loyalty programmes’’
IAS 39 and IFRS 7 (Amendments)—‘‘Reclassification of Financial Assets’’
IFRIC 11, ‘‘IFRS 2—Group and treasury share transactions’’.
Standards, amendments and interpretations to existing standards that are not yet effective and have
not been early adopted by the Group
The following standards, amendments and interpretations to existing standards have been
published and are mandatory for the Group’s accounting periods beginning on or after 1 January 2009
or later periods, but the Group has not early adopted them:
IFRIC 14, ‘‘IAS 19—The limit on a defined benefit asset, minimum funding requirements and their
interaction’’, provides guidance on assessing the limit in IAS 19 on the amount of a defined benefit
F-5