Annual Reports - RTÉ

ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 200723 Related party transactionsRTÉ is a statutory corporation, established under the Broadcasting Authority Act, 1960. The members of the RTÉ Authority areappointed 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 behalfof the Department of Communications, Energy and Natural Resources.For the purposes of the disclosure requirements of IAS 24 the term “key management personnel” (i.e. those persons having authorityand responsibility for planning, directing and controlling the activities of the company) comprises the RTÉ Authority, the DirectorGeneral, the Heads of the Integrated Business Divisions and of the principal corporate functions, including all of the team reportingdirectly to the Director General. The total amount of remuneration paid to key management personnel was €4.428 million (2006€4.368 million) the majority of which comprises short term employee benefits.At 31 December 2007, the total payables to RTÉ subsidiary undertakings was €40.19 million (2006: €65.72 million).24 Transition to IFRS on first-time adoptionUp to and including 31 December 2006, the Group prepared its financial statements in accordance with generally accepted accountingpractices in Ireland however during 2007 opted to prepare its accounts in conformity with IFRS as endorsed by the EU. The following isa summary of the principal changes on transition to IFRS:OverviewIt is a requirement that the first IFRS financial statements include full comparative information for the year ended 31 December2006. The date of transition to IFRS for all standards, is 1 January 2006, being the start of the comparative period in the Group’sfirst financial statements. The standards which gave rise to the most significant changes to the consolidated results of the Group ontransition to IFRS were as follows:IFRS 3 Business CombinationsIAS 2 InventoriesIAS 12 Income TaxesIAS 19 Employee BenefitsIAS 32 Financial Instruments: Disclosure and PresentationIAS 37 Provisions, Contingent Liabilities and Contingent AssetsIAS 38 Intangible Assets andIAS 39 Financial Instruments: Recognition and Measurement.Optional exemptions availed of on transition to IFRSIFRS 1 sets out the procedures that the Group must follow when adopting IFRS for the first time as the basis for preparing itsconsolidated financial statements. This statement permits a number of optional exemptions for the general principle of retrospectiverestatement and the Group elected to avail of the following exemption:(i)Property, plant and equipmentThe Group retained its existing carrying value of occupied properties, plant and equipment at 1 January 2006 as deemed cost ratherthan reverting to historical cost or carrying out a valuation at the date of transition as permitted by IFRS 1.Impact of transition to IFRSDetailed reconciliations from Irish GAAP to IFRS of the Group’s financial performance and financial position together with noteexplanations of the principal changes are contained in the following pages.There were no significant differences between IFRS and previous GAAP on the Group and RTÉ cash flow statement and statement oftotal recognised gains and losses.77