Here - RTÃ

More documents

Recommendations

Info

RADIO TELEFÍS ÉIREANN Notes (continued) forming part of the Group financial statements 22 Financial Instruments (continued) (ii) Sensitivity analysis In managing currency risks, the Group aims to reduce the impact of short term fluctuations on the Group’s earnings. Foreign currency forward purchase contracts are used by the Group to reduce volatility arising from these foreign currency exposures. As a result the Group mitigates the risk of movements in foreign exchange rates. (e) Interest rate risk At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was: Carrying Amount 2008 2007 €’000 €’000 Fixed Rate Instruments Financial assets 56,176 82,314 Variable Rate Instruments Financial assets 12,091 7,821 An increase of 100 basis points in interest rates would have decreased the deficit by €0.4 million (increased the surplus in 2007 by €0.8 million). (f) Fair Values (i) Fair Values versus Carrying Amounts The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet, are as follows: 31 December 2008 31 December 2007 Carrying Fair Carrying Fair amount value amount value €’000 €’000 €’000 €’000 Trade receivables 52,803 52,803 61,294 61,294 Cash and cash equivalents 68,267 68,267 16,730 16,730 Liquid investments - - 73,405 73,405 Forward exchange contracts: Assets - - - - Liabilities (148) (148) (984) (984) Trade payables (9,258) (9,258) (6,716) (6,716) Accruals (60,720) (60,720) (48,666) (48,666) (ii) Interest rates used for determining fair value All derivative financial instruments at 31 December 2008 and 31 December 2007 had a maturity of less than 18 months from the balance sheet date and therefore the net present value of the derivative financial instruments have not been discounted in determining their fair value as the impact of discounting is not considered to be material. 23 Financial Commitments and Contingencies (a) Capital Commitments Group RTÉ 2008 2007 2008 2007 €’000 €’000 €’000 €’000 Contracted but not provided for 12,545 1,928 1,474 837 Authorised but not contracted for 4,206 3,284 248 2,852 16,751 5,212 1,722 3,689 (b) Programme/Rights Purchase Commitments Group RTÉ 2008 2007 2008 2007 €’000 €’000 €’000 €’000 Contracted but not provided for 84,479 43,140 84,479 43,140 72
ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2008 23 Financial Commitments and Contingencies (continued) (c) Operating Lease Commitments Gross operating leases, principally in respect of motor vehicles, payable in the future in respect of leases expiring: Group RTÉ 2008 2007 2008 2007 €’000 €’000 €’000 €’000 Within one year 52 101 34 73 Within two to five years 7 45 7 41 59 146 41 114 24 Related Party Transactions RTÉ is a statutory corporation, established under the Broadcasting Authority Act, 1960. The members of the RTÉ Authority are appointed by the Government. The Group provides advertising and other similar services, and purchases goods and services, in the ordinary course of its business to/from Government departments and to entities controlled by the Irish Government. An Post collects the Television Licence Fee on behalf of the Department of Communications, Energy and Natural Resources (DCENR). For the purposes of the disclosure requirements of IAS 24 the term “key management personnel” (i.e. those persons having authority and responsibility for planning, directing and controlling the activities of the company) comprises the RTÉ Authority, the Director-General, the Heads of the Integrated Business Divisions and of the principal corporate functions, including all of the team reporting directly to the Director-General. The total amount of remuneration paid to key management personnel was €4.119 million (2007 €4.428 million) the majority of which comprises short term employee benefits. At 31 December 2008, the total payables to RTÉ subsidiary undertakings was €43.93 million (2007: €40.19 million). 25 Prior Year Adjustment Certain individuals are entitled to receive a free television licence under the DSFA Household Benefits Package Scheme. The Department of Social and Family Affairs (DSFA) makes monthly payments to DCENR in respect of the value of these licences. In turn, these amounts form part of the non-repayable “grant in aid” from DCENR to RTÉ. The administration of the issuance of free licences and the method by which the licences were valued changed with effect from 1 August 2004. Following the implementation of this change, a dispute arose between DCENR and DSFA regarding the amount due from DSFA in respect of licences issued in 2004 and recognised in income by RTÉ in the same year. In 2005, RTÉ recorded a provision for impairment of €3.9 million in respect of the amounts in dispute. In November 2008, DCENR negotiated an agreement with DSFA in full and final settlement of the outstanding amounts owing from DSFA amounting to €2.0 million. As part of this agreement, DCENR also agreed to retrospectively alter the basis by which Licence Fee income was historically recognised by RTÉ with effect from 1 September 2004. In effect, this meant that the period end trade and other receivables balance from 2005 to 2007 did not fairly reflect the amounts outstanding at the financial year end notwithstanding that there was minimum impact on the income statement. In line with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, this change in the basis of recognition of Licence Fee income has been accounted for as a retrospective change in accounting policy and the comparative financial statements for 2007 have been restated. The opening retained earnings for 2007 have been reduced by €3.4m with a corresponding adjustment to the period-end trade and other receivables at 31 December 2007 to reflect the appropriate receivable balance at that time. 73
Page 1 and 2:
ANNUAL REPORT & GROUP FINANCIAL STA
Page 3 and 4:
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24: ANNUAL REPORT & GROUP FINANCIAL STA
Page 73: ANNUAL REPORT & GROUP FINANCIAL STA
Page 95 and 96: www.sourcedesign.ie
show all

Here - RTÃ

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?

Here - RTÃ