Annual Reports - RTÉ

ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2007
The expected return on the Superannuation
Scheme’s assets during the year and the
increase in the scheme’s liabilities due to the
unwinding of the discount during the year
are shown as financing costs in the Income
Statement. Any difference between the
expected return on assets and that actually
achieved, and any changes in the liabilities
due to changes in assumptions or because
actual experience during the year was
different to that assumed, are recognised as
actuarial gains and losses in the statement
of recognised income and expense.
(b) Termination benefits
Termination benefits are recognised as an
expense when the Group is demonstrably
committed, without realistic possibility of
withdrawal, to a formal detailed plan to either
terminate employment before the normal
retirement date, or to provide termination
benefits as a result of an offer made to
encourage voluntary redundancy. Termination
benefits for voluntary redundancies are
recognised as an expense if the Group
has made an offer encouraging voluntary
redundancy, if it is probable that the offer will
be accepted, and the number of acceptances
can be estimated reliably.
(c) Short-term benefits
Short-term employee benefit obligations are
measured on an undiscounted basis and are
expensed as the related service is provided.
12. Income tax
(a) Recognition
Income tax comprises current and deferred
tax. Income tax expense is recognised in the
Income Statement except to the extent that it
relates to items recognised directly in equity,
in which case it is recognised in equity.
(b) Current tax
Current tax is the expected tax payable on
the taxable income for the year, using the
tax rates enacted or substantially enacted
at the reporting date, and any adjustment
to tax payable in respect of previous years.
The Group’s taxable income is liable to Irish
corporation tax. The Group’s Licence Fee
revenue earned prior to 31 December 2006
was exempt from corporation tax.
(c) Deferred tax
Deferred tax is recognised using the balance
sheet method, providing for temporary
differences between the carrying amount
of assets and liabilities for financial
reporting purposes and the amounts used
for taxation purposes. Deferred tax assets
and liabilities are not subject to discounting
and are measured at the tax rates that are
anticipated to apply in the period in which
the asset is realised or the liability is settled
based on the tax rates and tax laws that
have been enacted or substantively enacted
at the balance sheet date.
Deferred tax liabilities are recognised for
all taxable temporary differences with the
exception of the initial recognition of an
asset or liability in a transaction that is not a
business combination and affects neither the
accounting profit or taxable profit or loss at
the time of the transaction.
A deferred tax asset is recognised to the
extent that it is probable that future taxable
profits will be available against which
the temporary difference can be utilised.
Deferred tax assets are reviewed at each
reporting date and are reduced to the extent
that it is no longer probable that the related
tax benefit will be realised.
Deferred tax assets and liabilities are offset
if there is a legally enforceable right to offset
current tax liabilities and assets, and they
relate to income taxes levied by the same tax
authority on the same taxable entity.
13. Operating leases
Payments made under operating leases are
recognised in the Income Statement on a
straight-line basis over the term of the lease.
14. New standards and interpretations
issued but not yet effective
A number of new standards, amendments
to standards and interpretations are not yet
effective for the year ended 31 December
2007, and have not been applied in preparing
these consolidated financial statements:
• IFRS 8 Operating Segments introduces
the “management approach” to segment
reporting. IFRS 8, which becomes
mandatory for the Group’s 2009 financial
statements, requires the disclosure of
segment information based on the internal
reports regularly reviewed by the Group’s
Chief Operating Decision Maker in order to
assess each segment’s performance and
to allocate resources to them. Currently
the Group presents segment information
by Integrated Business Division (IBD) (see
note 1) which is consistent with internal
reporting for decision making purposes so
the adoption of IFRS 8 is not expected to
have a significant impact.
• Revised IAS 23 Borrowing Costs removes
the option to expense borrowing costs and
requires that an entity capitalise borrowing
costs directly attributable to the acquisition,
construction or production of a qualifying
asset as part of the cost of the asset. The
revised IAS 23 will become mandatory for
the Group’s 2009 financial statements but
is not expected to have any impact for RTÉ
as the Group has no borrowings.
• IFRIC 11 IFRS 2 – Group and Treasury
Share Transactions requires a share-based
payment arrangement in which an entity
receives goods or services as consideration
for its own equity instruments to be
accounted for as an equity-settled sharebased
payment transaction. IFRIC 11 will
become mandatory for the Group’s 2008
financial statements but is not expected to
have any impact for RTÉ as the Group has
no share capital or share based payment
arrangements.
• IFRIC 12 Service Concession
Arrangements provides guidance on certain
recognition and measurement issues that
arise in accounting for public-to-private
service concession arrangements. IFRIC
12, which becomes mandatory for the
Group’s 2008 financial statements, is
not expected to have any effect on the
consolidated financial statements.
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