Amadeus IT Holding, S.A. and Subsidiaries - Investor relations at ...

AMADEUS IT HOLDING, S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS FOR THE YEARS ENDED
DECEMBER 31, 2011, AND 2010
(EXPRESSED IN THOUSANDS OF EUROS - KEUR)
authorizations, entries with public registers or other requirements are required by
legal dispositions to perform an activity embraced in the corporate object, such
activity shall not commence until the required professional or administrative
requirements have been fulfilled.
Amadeus IT Holding, S.A. is the parent company of the Amadeus Group (“the
Group”). The Group is a leading transaction processor for the global travel and
tourism industry, providing advanced technology solutions to travel providers and
travel agencies worldwide. Its worldwide data network and database of travel
information are used by travel agencies and airline sales offices. Today, travel
agencies and airline offices can make bookings, with airlines, hotel chains, car rental
companies and groups of providers such as ferry, rail, cruise, insurance and tour
operators through the Amadeus system. The Group provides this distribution
services (“Distribution”) through a computerized reservation system (“CRS”) and
through its e-commerce channel of distribution. Additionally, the Group provides
information technology (“IT Solutions”) services and solutions mainly to the airline
industry, including inventory management and passenger departure control.
The Company’s shares are traded on the Spanish electronic trading system
(“Continuous Market”) on the four Spanish Stock Exchanges (Madrid, Barcelona,
Bilbao and Valencia). The Company’s shares form part of the Ibex 35 index.
2. BASIS OF PRESENTATION AND COMPARABILITY OF THE INFORMATION
a) Basis of presentation
i) General Information
The accompanying consolidated annual accounts have been prepared in accordance
with International Financial Reporting Standards as adopted by the European Union
(“IFRS-EU”), applicable for the year ended December 31, 2011, and with the
regulation issued by the Spanish Stock Exchange (“Comisión Nacional del Mercado
de Valores”), in particular Circular 1/2008 from January 30, in relation to the financial
information for the six months periods applicable to companies listed in organised
markets, the interim management report, and when applicable the quarterly financial
reports. The issue of these financial statements was authorized for issue by the
Board of Directors of the Company on February 23, 2012.
The presentation currency of the Group is the Euro. The statement of financial
position is presented with a difference between current and non-current items, and
the statement of comprehensive income is presented by nature of expense. The
presentation by nature highlights better the different components of financial
performance of the Group and enhances predictability of the business. The Group
decided to prepare the statement of cash flows by applying the indirect method.
The Group presented negative working capital in the year ended as of December 31,
2011 which given the industry in which the Group operates and its financial structure,
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