annual report 2009 - Aer Lingus

More documents

Recommendations

Info

68 Financial Statements Aer Lingus Group Plc – Annual Report 2009Notes to the Consolidated Financial Statements [continued]4 Critical accounting estimates and judgementsThe Group believes that of its significant accounting policies and estimates, the following may involve a higher degree of judgementand complexity:(a) ProvisionsThe Group makes provisions for legal and constructive obligations, which it knows to be outstanding at the reporting date. Theseprovisions are generally made based on historical or other pertinent information, adjusted for recent trends where relevant. However,they are estimates of the financial costs of events that may not occur for some years. The actual outturn may differ significantly fromthat estimated.(b) Post retirement benefitsAs the provisions of trust deeds governing the Irish Pension Schemes are such that no changes to the contribution rates are possiblewithout the prior consent of the Group, the Group has concluded that it has no obligation, legal or constructive, to increase itscontributions beyond those levels. As such, it has accounted for the Irish Pension Schemes as defined contribution schemes underthe provisions of IAS 19 Employee Benefits, and, as a result, does not recognise any surplus or deficit in the schemes on the statementof financial position.If any legal or constructive obligation to vary the Group’s contributions based on the funding status of the Irish Pension Schemes arises,IAS 19 requires the Group to include any pension fund surplus or deficit on its statement of financial position and reflect any period onperiod movements in its income statement or the statement of comprehensive income.(c) ImpairmentThe Group tests, in accordance with the accounting policy stated in Note 2.7, whether property, plant and equipment has suffered anyimpairment when, at the end of a reporting period, there is any indication that an asset may be impaired. The recoverable amountsare determined based on value-in-use calculations. These calculations require the use of estimates and are sensitive to the growthrate assumed for the Group and the discount rate used to estimate the present value of future cash flows.5 Segment informationIFRS 8 Operating Segments requires us to disclose certain information about our operating segments. An operating segment is definedas a component of an entity that engages in business activities from which it earns revenues and incurs expenses, with discrete financialinformation, which is evaluated regularly by the chief operating decision maker and used in resource allocation and to assessperformance.The Group is managed as a single business unit that provides air transportation for passengers and cargo, which allows the Group tobenefit from an integrated revenue pricing and route network. Our flight equipment forms one fleet, which is deployed through a singleroute scheduling system. When making resource allocation decisions, the chief operating decision maker evaluates flight profitabilitydata, which considers aircraft type and route economics. Based on the way the Group treats the network and the manner in whichresource allocation decisions are made the Group considers each route to be an operating segment, however having assessed theaggregation criteria specified in IFRS 8, the Group has determined that it has only one operating segment for financial reportingpurposes. In prior years, segment information reported externally was analysed on the basis of the types of service supplied by theGroup, i.e. passenger travel and cargo transportation, however information reported to the executive management team is morespecifically focused on flight profitability data.The chief operating decision maker assesses the performance of the operating segment based on a measure of adjusted operatingprofit before net exceptional items, interest and tax. This measure excludes the effects of non-recurring expenditure and revenuefrom the operating segment, such as restructuring costs and provision remeasurements, when the remeasurements are the resultof an isolated, non-recurring event. These are aggregated in the ‘miscellaneous group level adjustments’ caption below. Interestincome and expenditure are not included in the result of the operating segment that is reviewed by the chief operating decision maker.
Financial Statements Aer Lingus Group Plc – Annual Report 2009695 Segment information [continued]Total segment assets exclude deferred tax assets, loans and receivables, deposits and cash and cash equivalents, all of which aremanaged on a central basis. These are part of the reconciliation to total assets.Segment revenue of €1,205.7m (2008: €1,355.0) is wholly derived from external customers. Depreciation and amortisationof €82.7m (2008: €71.9m) is included in the measure of segment profit and loss.2009 2008€’000 €’000Adjusted operating loss before net exceptional items,interest and tax for the reportable segment (70,834) (26,972)Miscellaneous group level adjustments (10,184) 6,960Net exceptional items (88,630) (140,888)Operating loss after net exceptional items (169,648) (160,900)Finance income 36,900 60,860Finance costs (22,098) (22,018)Loss before tax (154,846) (122,058)The reportable segment’s assets are reconciled to total assets as follows:2009 2008€’000 €’000Total segment assets 897,316 875,829Deferred tax asset 4,755 3,352Loans and receivables 77,306 115,109Deposits 737,398 1,085,577Cash and cash equivalents 13,762 6,081Total assets 1,730,537 2,085,948During the period additions totalling €162.7m (2008: €121.0m) were made to the reportable segments non-current assets.Revenues from external customers, attributable to Ireland, the Group’s country of domicile, amounted to €723.5m (2008: €840.1m) andrevenues from external customers, attributed to foreign countries in total from which the Group derives revenue, amounted to €482.2m(2008: €514.9m). Substantially all of the Group’s non-current assets are located in Ireland.6 Revenue2009 2008€’000 €’000Passenger revenue 992,683 1,149,210Ancillary revenue 173,907 149,748Cargo revenue 34,338 50,273Other revenue 4,811 5,7631,205,739 1,354,994
Page 1 and 2:
annual report 2009
Page 3 and 4:
Financial HighlightsFor the year en
Page 5 and 6:
Chairman’s Statement Aer Lingus G
Page 11 and 12:
Operating and Financial Review Aer
Page 13 and 14:
Board of Directors Aer Lingus Group
Page 15 and 16:
Corporate Social Responsibility Sta
Page 17 and 18:
Corporate Social Responsibility Sta
Page 19 and 20: Corporate Social Responsibility Sta
Page 29 and 30: Directors’ Report Aer Lingus Grou
Page 35: Directors’ Report Aer Lingus Grou
Page 38 and 39: 36 Directors’ Report Aer Lingus G
Page 41 and 42: Remuneration Committee Report Aer L
Page 43 and 44: Remuneration Committee Report Aer L
Page 45 and 46: Independent Auditors’ Report Aer
Page 47 and 48: Financial Statements Aer Lingus Gro
Page 69: Financial Statements Aer Lingus Gro
show all

annual report 2009 - Aer Lingus

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

Delete template?

Save as template?