Annual Reports - RTÉ

RADIO TELEFÍS ÉIREANN
Notes (continued)
forming part of the group financial statements
Group Income Statement
for the year ended 31 December 2006
Adjustments under IFRS
Minor
Derivative
Previous Programme spare Intangible Employee financial Bad debt Deferred Group
Irish GAAP Inventories parts assets benefits instruments provision Tax Total
All figures in thousands (i) (ii) (iii) (iv) (v) (vi) (vii)
Revenue 405,021 405,021
Operating costs (402,793) (2,076) 57 1,368 (57) (262) 103 (403,660)
Surplus before financing and tax 2,228 (2,076) 57 1,368 (57) (262) 103 1,361
Finance income 2,392 2,392
Finance expense (354) (334) (539) (1,227)
Net defined benefit pension related finance income 14,485 14,485
Surplus before income tax 18,751 (2,076) 57 1,368 (391) (801) 103 17,011
Income tax credit - 937 937
Surplus for the year after tax 18,751 (2,076) 57 1,368 (391) (801) 103 937 17,948
(i) Recognition of programme inventories in accordance with IAS 2 Inventories. Under previous GAAP, expenditure on programmes was
expensed as incurred. Adjustments to prepayments and accruals were required as part of this transition.
(ii) Recognition of minor spare parts in accordance with IAS 2 Inventories. Under previous GAAP, expenditure on minor spare parts was
expensed as incurred.
(iii) Recognition of computer software as intangible assets under IAS 38 Intangible Assets. Under previous GAAP, expenditure on computer
software was either capitalised as a tangible fixed asset or expensed as incurred depending on its nature. An adjustment to accruals
was required as part of this transition.
(iv) Reclassification of employee related liabilities and adjustment to reflect the use of a corporate bond yield of approximate duration to
discount the restructuring provision in accordance with IAS 19 Employee Benefits. Previously, a cash rate had been used to discount the
provision.
(v) Adjustment to reflect the fair value movement of derivative financial instruments in accordance with IAS 39 Financial Instruments:
Recognition and Measurement and to adjust foreign payables to the spot rate in accordance with IAS 21 The effects of changes in foreign
currency rates.
(vi) Adjustment to the bad debt provision in accordance with IAS 39 Financial Instruments: Recognition and Measurement.
(vii) Recognition of deferred tax in accordance with IAS 12 Income Taxes. Deferred tax in respect of the defined benefit pension scheme has
been recognised in equity in accordance with IAS 19 Employee Benefits.
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