EirGrid plc Annual Report 2011

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EirGrid plc Annual Report & Accounts 2011 Notes to the Financial Statements 1. General Information EirGrid plc (‘the Company’) is a public limited company, incorporated in Ireland, established pursuant to S.I. No 445 of 2000 – European Communities (Internal Market in Electricity) Regulations, 2000. The Company is licensed by the Commission for Energy Regulation as the Transmission System Operator (TSO) in Ireland and as Market Operator (MO) for the wholesale electricity market on the island of Ireland. SONI Ltd is licensed by the Northern Ireland Authority for Utility Regulation as the TSO in Northern Ireland and also holds an MO licence for the island of Ireland. The registered office of EirGrid plc is The Oval, 160 Shelbourne Road, Ballsbridge, Dublin 4. 2. Statement of Accounting Policies Basis of preparation The Group and Company Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. They are prepared on the basis of all IFRSs and Interpretations that are mandatory for periods ending 30 September 2011 and in the case of EirGrid plc Group and Company accounts, in accordance with the Irish Companies Acts, 1963 to 2009. The Directors are confident, on the basis of current financial projections and facilities available, that the Group has adequate resources to continue in operation for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing the accounts. The Financial Statements have been presented in Euro, the currency of the primary economic environment in which the Group and Company operate and have been prepared on a historical cost basis, except for the revaluation of certain financial instruments which are held at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The preparation of Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. The accounting policies set out below have been consistently applied to all periods presented in these Financial Statements. The current period being reported on is the year to 30 September 2011. The comparative figures are for the year ended 30 September 2010. Adoption of new standards The Group has early adopted the provisions of IAS 24 (2009), as the Directors believe early adoption will provide users with more reliable and relevant information regarding related party transactions. IAS 24 (2009) is a revision to IAS 24, which requires disclosure of transactions and outstanding balances with related parties, to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties. This amendment has not led to any changes in the Group’s accounting policies. At the date of authorisation of these Financial Statements, the following Standards and Interpretations which have not been applied in these Financial Statements were in issue but not yet effective for the accounting period reported on: • Improvements to IFRSs 2010 – Improvements are effective for annual periods beginning on or after 1 January 2011 72
EirGrid plc Annual Report & Accounts 2011 2. Statement of Accounting Policies (continued) • IFRS 1 (Amendments) – Severe hyperinflation and removal of fixed dates for first-time adopters (Effective 1 July 2011) • IFRS 7 (Amendments) – Transfers of financial assets (Effective 1 July 2011) • IFRS 9 – Financial instruments: classification and measurement (Effective 1 January 2013) • IFRS 10 – Consolidated financial instruments (Effective 1 January 2013) • IFRS 11 – Joint arrangements (Effective 1 January 2013) • IFRS 12 – Disclosure of interests in other entities (Effective 1 January 2013) • IFRS 13 – Fair value measurement (Effective 1 January 2013) • IFRIC 14 – Prepayments of a minimum funding standard (Effective 1 January 2011) • IFRIC 20 – Stripping costs in the production phase of a surface mine (Effective 1 January 2013) • IAS 1 (Amendments) – Presentation of items of other comprehensive income (Effective 1 January 2012) • IAS 12 – Income taxes: limited scope amendment regarding recovery of underlying assets (Effective 1 January 2012) • IAS 19 – Employee benefits (Effective 1 January 2011) • IAS 27 – Consolidated and separate financial statements, reissued as separate financial statements (Effective 1 January 2013) • IAS 28 – Investments in associates, reissued as investments in associates and joint ventures (Effective 1 January 2013) The Directors are currently assessing the impact of these Standards and Interpretations on the Financial Statements. Basis of consolidation The Consolidated Financial Statements incorporate the Financial Statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries acquired during the year are included in the Consolidated Income Statement from the effective date of acquisition. Where necessary, adjustments are made to the Financial Statements of subsidiaries to bring their accounting policies into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Joint ventures Joint venture arrangements that involve the establishment of a separate asset in which each venturer has an interest are referred to as jointly controlled assets. The Company’s share of the assets, liabilities, income and expenses of jointly controlled assets are combined with the equivalent items in the Financial Statements on a line-by-line basis. Business combinations Business combinations from 1 April 2010 are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree. For each business combination, the acquirer measures the non-controlling interest in 73
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EirGrid plc Annual Report & Account
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Customer Profile John Weir Intel Cu
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Customer Profile George Sonneborn S
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EirGrid plc Annual Report 2011

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