Here - RTÃ
Here - RTÃ
Here - RTÃ
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
RADIO TELEFÍS ÉIREANN<br />
Statement of Accounting Policies<br />
1. Basis of accounting<br />
The following accounting policies have<br />
been applied consistently in dealing with<br />
items which are considered material in<br />
relation to the Group and RTÉ financial<br />
statements with the exception of the basis<br />
of recognition of Licence Fee revenue. As<br />
detailed in note 25, the basis of recognition<br />
of Licence Fee revenue payable by the<br />
Department of Social and Family Affairs<br />
(DSFA) has been revised. The comparative<br />
figures have been restated accordingly.<br />
(a) Reporting entity<br />
RTÉ is a statutory corporation established<br />
under the Broadcasting Authority Act, 1960<br />
and is domiciled in Ireland. The consolidated<br />
financial statements of RTÉ as at and<br />
for the year ended 31 December 2008<br />
comprise of the statutory corporation and all<br />
entities controlled by it (together referred to<br />
as the “Group”).<br />
(b) Statement of compliance<br />
The RTÉ and Group financial statements<br />
have been prepared in accordance with<br />
International Financial Reporting Standards<br />
(IFRSs) and their interpretations approved<br />
by the International Accounting Standards<br />
Board (IASB) as adopted by the European<br />
Union (EU) that are effective for the<br />
year ended 31 December 2008 and are<br />
applied in accordance with the provisions<br />
of broadcasting legislation. The Group has<br />
also elected to present both its consolidated<br />
and RTÉ parent entity financial statements<br />
in accordance with the provisions of the<br />
Irish Companies Acts, 1963 to 2006 in so<br />
far as necessary to give a true and fair view.<br />
Accordingly RTÉ’s parent balance sheet,<br />
statement of cash flows and statement of<br />
total recognised income and expense have<br />
also been presented with the consolidated<br />
financial statements as would ordinarily be<br />
required by the Irish Companies Acts 1963<br />
to 2006.<br />
(c) Basis of preparation<br />
The RTÉ and Group financial statements<br />
have been prepared on the historical<br />
cost basis except for derivative financial<br />
instruments which are measured at fair<br />
value.<br />
The Group financial statements are<br />
prepared in Euro, rounded to the nearest<br />
thousand, which is the functional currency<br />
of all the Group entities.<br />
The preparation of financial statements<br />
in conformity with IFRSs requires<br />
management to make judgements,<br />
estimates and assumptions that affect<br />
the application of accounting policies and<br />
reported amounts of assets, liabilities,<br />
income and expenses. Actual results may<br />
differ from these estimates.<br />
Estimates and underlying assumptions are<br />
reviewed on an ongoing basis. Revisions to<br />
accounting estimates are recognised in the<br />
period in which the estimates are revised<br />
and in any future periods effected. The<br />
key areas involving significant judgement<br />
or complexity, or areas where assumptions<br />
and estimates are significant to the Group’s<br />
financial statements relate primarily to the<br />
valuation of the defined benefit pension<br />
scheme, financial instruments, provisions,<br />
and income tax and are documented in<br />
the relevant accounting policies below<br />
and in the related notes. The accounting<br />
policies set out below have been applied<br />
consistently by group entities and by RTÉ,<br />
where applicable, to all periods presented<br />
in these consolidated and RTÉ financial<br />
statements.<br />
2. Basis of consolidation<br />
(a) Subsidiaries<br />
The Group financial statements include<br />
the financial statements of RTÉ and all<br />
of its subsidiary entities drawn up to 31<br />
December each year. Subsidiaries are<br />
entities controlled by the Group. Control<br />
exists when the Group has the power to<br />
govern the financial and operating policies<br />
of an entity so as to obtain benefits from<br />
its activities. The financial statements of<br />
subsidiaries are included in the consolidated<br />
financial statements from the date that<br />
control commences until the date that<br />
control ceases.<br />
(b) Transactions eliminated on<br />
consolidation<br />
Intra-group balances and transactions, and<br />
any realised income and expenses arising<br />
from intra-group transactions, are eliminated<br />
in preparing the consolidated financial<br />
statements.<br />
3. Revenue recognition<br />
(a) Recognition principles<br />
Revenue, which excludes VAT and<br />
transactions between companies in<br />
the Group, comprises income arising<br />
from Licence Fees, advertising sales,<br />
sponsorship, the use of the Group’s facilities<br />
and transmission network, circulation and<br />
events income, and content, merchandising<br />
and related income. Revenue is stated net<br />
of any settlement and volume discounts.<br />
Revenue is recognised to the extent that<br />
recovery is probable, it is subject to reliable<br />
measurement, it is probable that economic<br />
benefits will flow to the Group and that the<br />
significant risks and rewards of ownership<br />
has transferred to the buyer.<br />
(b) Licence Fee revenue<br />
Licence Fee revenue payable by the<br />
Department of Social and Family Affairs<br />
(DSFA) on behalf of individuals eligible for<br />
a “free” Television Licence is paid by the<br />
DSFA to the Department of Communications,<br />
Energy and Natural Resources (DCENR).<br />
All other Licence Fee revenue is collected<br />
by An Post and paid over to DCENR,<br />
net of collection costs. DCENR makes<br />
a non-repayable “grant-in-aid” to RTÉ<br />
from these Licence Fees collected, as<br />
provided in Section 8 of the Broadcasting<br />
Authority (Amendment) Act, 1976, in lieu<br />
of the amounts collected by An Post, net<br />
of collection costs and a 5% levy to the<br />
Special Broadcasting Fund, together with the<br />
amounts paid to it by DSFA.<br />
Licence Fee revenue payable by the DSFA<br />
is recognised upon receipt. All other Licence<br />
Fee income is recognised upon notification<br />
by An Post.<br />
(c) Advertising and sponsorship income<br />
Television advertising income is recognised<br />
on delivery of a campaign. All other<br />
advertising income is recognised on<br />
transmission/publication. Advertising income<br />
is stated net of agency commissions.<br />
Sponsorship income is recognised evenly<br />
over the life of the sponsored programme,<br />
publication etc.<br />
(d) Network and facilities income<br />
Network and facilities income arises from<br />
the use of and access to, the Group’s<br />
transmission network and studio facilities<br />
provided to third parties. Amounts are<br />
recognised as the facilities are made<br />
available to third parties.<br />
(e) Circulation and events income<br />
Circulation income arises from the publication<br />
and circulation of the RTÉ Guide and is<br />
stated net of fees due to the distributor and<br />
end-retailer. Revenue is recognised on the<br />
basis of the net copies sold at the end of the<br />
sales cut-off period for each issue.<br />
Events income arises from public events<br />
organised by RTÉ Performing Groups. It<br />
is recognised as the events are held and<br />
amounts fall due.<br />
(f) Content, merchandising and related<br />
income<br />
Content, merchandising and related income<br />
represents amounts generated from RTÉ<br />
content and services provided to third parties<br />
through a range of means, including the<br />
Group’s internet facilities, Aertel teletext,<br />
the external sale of RTÉ content and<br />
amounts earned through other commercial<br />
services provided by the Group. Revenue is<br />
recognised as the service is provided or upon<br />
delivery of goods to the third party.<br />
38