REG - Ryanair Holdings PLC - Annual Financial Report <Origin Href="QuoteRef">RYA.I</Origin> - Part 11
06/09/2014 22:39
- Part 11: For the preceding part double click ID:nRSd7552Nj
FINANCIAL STATEMENTS
Page
Consolidated Balance Sheet of Ryanair Holdings plc at March 31, 2014................................... 146
Consolidated Income Statement of Ryanair Holdings plc for the Year ended March 31, 2014................................................................................................................................................................ 147
Consolidated Statement of Comprehensive Income of Ryanair Holdings plc for the year ended March 31, 2014......................................................................................................................... 148
Consolidated Statement of Changes in Shareholders' Equity of Ryanair Holdings plc for the years ended March 31, 2014........................................................................................................ 149
Consolidated Statement of Cash Flow of Ryanair Holdings plc for the years ended March 31, 2014.................................................................................................................................................. 151
Notes..................................................................................................................................................... 152
Company Balance Sheet of Ryanair Holdings plc at March 31, 2014.......................................... 201
Company Statement of Cash Flows of Ryanair Holdings plc for the year ended March 31, 2014........................................................................................................................................................ 202
Company Statement of Changes in Shareholders' Equity of Ryanir Holdings plc for the year ended March 31, 2014................................................................................................................ 203
Notes forming part of Company Financial Statements.................................................................. 204
Directors and other Information........................................................................................................ 207
Consolidated Balance Sheet
At March 31, 2014 At March 31, 2013 At March 31, 2012
Note EM EM EM
Non-current assets
Property, plant and equipment.......................................................... 2 5,060.3 4,906.3 4,925.2
Intangible assets................................................................................. 3 46.8 46.8 46.8
Available for sale financial assets....................................................... 4 260.3 221.2 149.7
Derivative financial instruments........................................................ 5 0.4 5.1 3.3
Total non-current assets..................................................................... 5,367.8 5,179.4 5,125.0
Current assets
Inventories ........................................................................................ 6 2.5 2.7 2.8
Other assets ...................................................................................... 7 124.2 67.7 64.9
Current tax ........................................................................................ 12 1.1 - 9.3
Trade receivables................................................................................ 8 58.1 56.1 51.5
Derivative financial instruments........................................................ 5 16.7 78.1 231.9
Restricted cash................................................................................... 9 13.3 24.7 35.1
Financial assets: cash > 3 months...................................................... 1,498.3 2,293.4 772.2
Cash and cash equivalents.................................................................. 1,730.1 1,240.9 2,708.3
Total current assets............................................................................. 3,444.3 3,763.6 3,876.0
Total assets........................................................................................... 8,812.1 8,943.0 9,001.0
Current liabilities
Trade payables................................................................................... 150.0 138.3 181.2
Accrued expenses and other liabilities............................................... 10 1,561.2 1,341.4 1,237.2
Current maturities of debt.................................................................. 11 467.9 399.9 368.4
Current tax ........................................................................................ 12 - 0.3 -
Derivative financial instruments........................................................ 5 95.4 31.8 28.2
Total current liabilities...................................................................... 2,274.5 1,911.7 1,815.0
Non-current liabilities
Provisions.......................................................................................... 13 133.9 135.9 103.2
Derivative financial instruments........................................................ 5 43.2 50.1 53.6
Deferred tax ....................................................................................... 12 368.6 346.5 319.4
Other creditors................................................................................... 14 90.4 127.8 146.3
Non-current maturities of debt.......................................................... 11 2,615.7 3,098.4 3,256.8
Total non-current liabilities.............................................................. 3,251.8 3,758.7 3,879.3
Shareholders' equity
Issued share capital............................................................................ 15 8.8 9.2 9.3
Share premium account...................................................................... 15 704.2 687.8 666.4
Capital redemption reserve................................................................ 1.2 0.8 0.7
Retained earnings............................................................................... 2,465.1 2,418.6 2,400.1
Other reserves.................................................................................... 16 106.5 156.2 230.2
Shareholders' equity.......................................................................... 3,285.8 3,272.6 3,306.7
Total liabilities and shareholders' equity........................................ 8,812.1 8,943.0 9,001.0
Other reserves....................................................................................
16
106.5
156.2
230.2
Shareholders' equity..........................................................................
3,285.8
3,272.6
3,306.7
Total liabilities and shareholders' equity........................................
8,812.1
8,943.0
9,001.0
The accompanying notes are an integral part of the financial information.
On behalf of the Board
M.O'Leary D. Bonderman
Director Director
July 25, 2014
Consolidated Income Statement
Year ended Year ended Year ended
March 31, 2014 March 31, 2013 March 31, 2012
Note EM EM EM
Operating revenues
Scheduled revenues............................................................................ 17 3,789.5 3,819.8 3,504.0
Ancillary revenues............................................................................. 17 1,247.2 1,064.2 886.2
Total operating revenues - continuing operations......................... 17 5,036.7 4,884.0 4,390.2
Operating expenses
Fuel and oil......................................................................................... (2,013.1) (1,885.6) (1,593.6)
Airport and handling charges............................................................. (617.2) (611.6) (554.0)
Route charges..................................................................................... (522.0) (486.6) (460.5)
Staff costs.......................................................................................... 18 (463.6) (435.6) (415.0)
Depreciation....................................................................................... 2 (351.8) (329.6) (309.2)
Marketing, distribution and other...................................................... (192.8) (197.9) (180.0)
Maintenance, materials and repairs.................................................... (116.1) (120.7) (104.0)
Aircraft rentals................................................................................... (101.5) (98.2) (90.7)
Total operating expenses.................................................................... (4,378.1) (4,165.8) (3,707.0)
Operating profit - continuing operations........................................ 658.6 718.2 683.2
Other income/(expense)
Finance expense................................................................................. 20 (83.2) (99.3) (109.2)
Finance income................................................................................... 16.5 27.4 44.3
Foreign exchange (loss)/gain............................................................... (0.5) 4.6 4.3
Gain on disposal of property, plant and equipment......................... - - 10.4
Total other expense............................................................................. (67.2) (67.3) (50.2)
Profit before tax................................................................................... 591.4 650.9 633.0
Tax expense on profit on ordinary activities..................................... 12 (68.6) (81.6) (72.6)
Profit for the year - all attributable to equity holders of parent... 522.8 569.3 560.4
Basic earnings per ordinary share (euro cent).................................... 22 36.96 39.45 38.03
Diluted earnings per ordinary share (euro cent)................................. 22 36.86 39.33 37.94
Number of ordinary shares (in Ms)................................................... 22 1,414.6 1,443.1 1,473.7
Number of diluted shares (in Ms)...................................................... 22 1,418.2 1,447.4 1,477.0
Number of ordinary shares (in Ms)...................................................
22
1,414.6
1,443.1
1,473.7
Number of diluted shares (in Ms)......................................................
22
1,418.2
1,447.4
1,477.0
The accompanying notes are an integral part of the financial information.
On behalf of the Board
M.O'Leary D. Bonderman
Director Director
July 25, 2014
Consolidated Statement of Comprehensive Income
Year ended March 31, 2014 Year ended March 31, 2013 Year ended March 31, 2012
EM EM EM
Profit for the year...................................................................................................... 522.8 569.3 560.4
Other comprehensive income: Items that will never be reclassified to profit or loss:
Net actuarial (loss) from retirement benefit plans .................................................. (1.6) (1.1) (6.3)
(1.6) (1.1) (6.3)
Items that may or will be reclassified subsequently to profit or loss: Cash-flow hedge reserve-effective portion of fair value changes to derivatives:
Effective portion of changes in fair value of cash-flow hedges .............................. (108.0) (128.4) 147.3
Net change in fair value of cash-flow hedges transferred to property, plant and equipment ............................................................................................................... (0.1) 4.7 (11.1)
Net change in fair value of cash-flow hedges transferred to profit or loss.............. 24.4 (14.4) (255.0)
Net movements in cash-flow hedge reserve............................................................ (83.7) (138.1) (118.8)
Available for sale financial asset:
Net increase in fair value of available-for-sale asset................................................ 39.1 71.5 35.7
(44.6) (66.6) (83.1)
Total other comprehensive expense for the year, net of income tax................... (46.2) (67.7) (89.4)
Total comprehensive income for the year - all attributable to equity holders of parent ..................................................................................................................... 476.6 501.6 471.0
Total other comprehensive expense for the year, net of income tax...................
(46.2)
(67.7)
(89.4)
Total comprehensive income for the year - all attributable to equity holders of parent
.....................................................................................................................
476.6
501.6
471.0
The accompanying notes are an integral part of the financial information.
On behalf of the Board
M.O'Leary D. Bonderman
Director Director
July 25, 2014
Consolidated Statement of Changes in Shareholders' Equity
Other Reserves
Ordinary Issued Share Share Retained CapitalRedemption Other
Premium
Shares Capital Account Earnings Reserve Hedging Reserves Total
M EM EM EM EM EM EM EM
Balance at March 31, 2011........... 1,489.6 9.5 659.3 1,967.6 0.5 257.4 59.6 2,953.9
Profit for the year........................... - - - 560.4 - - - 560.4
Other comprehensive income
Net actuarial losses from retirement benefits plan.................................... - - - (6.3) - - - (6.3)
Net movements in cash-flow reserve............................................. - - - - - (118.8) - (118.8)
Net change in fair value of available- - - - - - - 35.7 35.7
for-sale asset...................................
Total other comprehensive income/ - - - (6.3) - (118.8) 35.7 (89.4)
(loss)...............................................
Total comprehensive income.......... - - - 554.1 - (118.8) 35.7 471.0
Transactions with owners of the Company, recognised directly in equity
Issue of ordinary equity shares....... 2.5 - 7.1 - - - - 7.1
Repurchase of ordinary equity shares.............................................. - - - (124.6) - - - (124.6)
Cancellation of repurchased ordinary shares................................ (36.5) (0.2) - - 0.2 - - -
Share-based payments.................... - - - - - - (0.7) (0.7)
Transfer of exercised and expired share-based awards......................... - - - 3.0 - - (3.0) -
Balance at March 31, 2012........... 1,455.6 9.3 666.4 2,400.1 0.7 138.6 91.6 3,306.7
Profit for the year........................... - - - 569.3 - - - 569.3
Other comprehensive income
Net actuarial losses from retirement benefits plan.................. - - - (1.1) - - - (1.1)
Net movements in cash-flow reserve............................................. - - - - - (138.1) - (138.1)
Net change in fair value of available- - - - - - - 71.5 71.5
for-sale asset...................................
Total other comprehensive income/ - - - (1.1) - (138.1) 71.5 (67.7)
(loss)...............................................
Total comprehensive income.......... - - - 568.2 - (138.1) 71.5 501.6
Transactions with owners of the Company, recognised directly in equity
Issue of ordinary equity shares....... 6.5 - 21.4 - - - - 21.4
Repurchase of ordinary equity shares.............................................. - - - (67.5) - - - (67.5)
Cancellation of repurchased ordinary shares................................ (15.0) (0.1) - - 0.1 - - -
Share-based payments.................... - - - - - - 1.9 1.9
Dividend Paid.................................. - - - (491.5) - - - (491.5)
Transfer of exercised share-based awards............................................. - - - 9.3 - - (9.3) -
Balance at March 31, 2013........... 1,447.1 9.2 687.8 2,418.6 0.8 0.5 155.7 3,272.6
(67.5)
Cancellation of repurchased ordinary shares................................
(15.0)
(0.1)
-
-
0.1
-
-
-
Share-based payments....................
-
-
-
-
-
-
1.9
1.9
Dividend Paid..................................
-
-
-
(491.5)
-
-
-
(491.5)
Transfer of exercised share-based awards.............................................
-
-
-
9.3
-
-
(9.3)
-
Balance at March 31, 2013...........
1,447.1
9.2
687.8
2,418.6
0.8
0.5
155.7
3,272.6
Consolidated Statement of Changes in Shareholders' Equity Continued
Other Reserves
Ordinary Issued Share Share Premium Retained CapitalRedemption Other
Shares Capital Account Earnings Reserve Hedging Reserves Total
M EM EM EM EM EM EM EM
Profit for the year……………………… - - - 522.8 - - - 522.8
Other comprehensive income
Net actuarial losses from retirement benefits plan…………………………… - - - (1.6) - - - (1.6)
Net movements in cash-flow reserve…. - - - - - (83.7) - (83.7)
Net change in fair value of available-for -sale asset…….……………………….. - - - - - - 39.1 39.1
Total other comprehensive income/(loss)…………………………... - - - (1.6) - (83.7) 39.1 (46.2)
Total comprehensive income……….….. - - - 521.2 - (83.7) 39.1 476.6
Transactions with owners of the Company, recognised directly in equity
Issue of ordinary equity shares………… 5.7 - 16.4 - - - - 16.4
Share-based payments………………… - - - - - - 1.9 1.9
Repurchase of ordinary equity shares…. - - - (481.7) - - - (481.7)
Cancellation of repurchased ordinary shares…………………………………. (69.5) (0.4) - - 0.4 - - -
Transfer of exercised and expired share-based awards…………………………… - - - 7.0 - - (7.0) -
Balance at March 31, 2014.................. 1,383.3 8.8 704.2 2,465.1 1.2 (83.2) 189.7 3,285.8
-
-
-
7.0
-
-
(7.0)
-
Balance at March 31, 2014..................
1,383.3
8.8
704.2
2,465.1
1.2
(83.2)
189.7
3,285.8
The accompanying notes are an integral part of the financial information.
Consolidated Statement of Cash Flows
Year ended March 31, 2014 Year ended March 31, 2013 Year ended March 31, 2012
EM EM EM
Operating activities
Profit after tax.................................................................................. 522.8 569.3 560.4
Adjustments to reconcile profit before tax
to net cash provided by operating activities
Depreciation.................................................................................... 351.8 329.6 309.2
Retirement costs.............................................................................. (1.2) - (0.1)
Tax expense on profit on ordinary activities................................... 68.6 81.6 72.6
Share-based payments charge/(credit)............................................. 1.9 1.9 (0.7)
Decrease/(increase) in inventories.................................................... 0.2 0.1 (0.1)
(Increase) in trade receivables.......................................................... (2.0) (4.6) (0.9)
(Increase)/decrease in other current assets....................................... (56.6) (5.0) 34.5
Increase/(decrease) in trade payables............................................... 11.7 (42.9) 30.4
Increase in accrued expenses............................................................ 220.7 107.2 11.6
(Decrease)/increase in other creditors.............................................. (37.4) (18.5) 19.7
(Decrease)/increase in provisions.................................................... (2.7) 31.1 6.6
Gain on disposal of property, plant and equipment....................... - - (10.4)
Decrease in finance income.............................................................. 0.1 2.2 -
(Decrease)/increase in finance expense............................................ (0.9) (2.7) 1.1
Income tax (paid)............................................................................. (32.4) (25.8) (13.6)
Net cash provided by operating activities........................................ 1,044.6 1,023.5 1,020.3
Investing activities
Capital expenditure (purchase of property, plant and equipment). (505.8) (310.7) (317.6)
Proceeds from sale of property, plant and equipment.................... - - 27.2
Decrease in restricted cash............................................................... 11.4 10.4 7.8
Decrease/(increase) in financial assets: cash > 3 months................. 795.1 (1,521.2) 97.2
Net cash from/(used) in investing activities.................................... 300.7 (1,821.5) (185.4)
Financing activities
Shares purchased under share buy-back programme.......................... (481.7) (67.5) (124.6)
Net proceeds from shares issued..................................................... 16.4 21.4 7.1
Dividend paid.................................................................................. - (491.5) -
Proceeds from long term borrowings............................................... - 234.6 292.3
Repayments of long term borrowings............................................. (390.8) (366.4) (329.7)
Net cash used in financing activities............................................... (856.1) (669.4) (154.9)
Increase/(decrease) in cash and cash equivalents.......................... 489.2 (1,467.4) 680.0
Cash and cash equivalents at beginning of year............................... 1,240.9 2,708.3 2,028.3
Cash and cash equivalents at end of year....................................... 1,730.1 1,240.9 2,708.3
489.2
(1,467.4)
680.0
Cash and cash equivalents at beginning of year...............................
1,240.9
2,708.3
2,028.3
Cash and cash equivalents at end of year.......................................
1,730.1
1,240.9
2,708.3
The accompanying notes are an integral part of the financial information.
Notes forming part of the Consolidated Financial Statements
1 Basis of preparation and significant accounting policies
The accounting policies applied in the preparation of the consolidated financial statements for the 2014 fiscal year are
set out below. These have been applied consistently for all periods presented, except as otherwise stated.
Business activity
Ryanair Limited and its subsidiaries ("Ryanair Limited") has operated as an international airline since commencing
operations in 1985. On August 23, 1996, Ryanair Holdings Limited, a newly formed holding company, acquired the entire
issued share capital of Ryanair Limited. On May 16, 1997, Ryanair Holdings Limited re-registered as a public limited
company, Ryanair Holdings plc (the "Company"). Ryanair Holdings plc and its subsidiaries are hereafter together referred to
as "Ryanair Holdings plc" (or "we", "our", "us", "Ryanair" or the "Company") and currently operate a low-fares airline
headquartered in Dublin, Ireland. All trading activity continues to be undertaken by the group of companies headed by
Ryanair Limited.
Statement of compliance
In accordance with the International Accounting Standards ("IAS") Regulation (EC 1606 (2002)) which applies throughout the
European Union ("EU"), the consolidated financial statements have been prepared in accordance with International Accounting
Standards and International Financial Reporting Standards ("IFRS") as adopted by the EU ("IFRS as adopted by the EU"),
which are effective for the year ended and as at March 31, 2014. In addition to complying with its legal obligation to
comply with IFRS as adopted by the EU, the consolidated financial statements have been prepared in accordance with IFRS as
issued by the International Accounting Standards Board ("IASB") ("IFRS as issued by the IASB"). The consolidated financial
statements have also been prepared in accordance with the Companies Acts, 1963 to 2013.
Details of legislative changes and new accounting standards or amendments to accounting standards, which are not yet
effective and have not been early adopted in these consolidated financial statements, and the likely impact on future
financial statements are set forth below in the prospective accounting changes section.
New accounting standards adopted during the year
The following new and amended standards, that have been issued by the International Accounting Standards Board (IASB), and
are effective under those standards for the first time for the financial year beginning on or after January 1, 2013, and
have also been endorsed by the EU, have been applied by the Group for the first time in the consolidated financial
statements;
· IAS 1 (amendment 2011), "Presentation of Items of financial statements".
· IAS 19 (amendment 2011), "Employee benefits".
· IFRS 7 (amendment), "Disclosures - Offsetting Financial Assets and Financial Liabilities"
· IFRS 13, "Fair Value Measurement".
· "Improvements to IFRSs". 2009-2011 Cycle.
· IAS 27 (amended 2011), "Separate financial statements".
· IAS 28 (amended 2011), "Associates and joint ventures".
· IFRS 10, "Consolidated Financial Statements".
· IFRS 11, "Joint arrangements".
· IFRS 12, "Disclosure of interests in other entities".
In addition the following amendment has been early adopted:
· IAS 36 (amendment), "Recoverable Amount Disclosures for Non-Financial Assets" (effective for fiscal periods
beginning on or after January 1, 2014).
The adoption of these new or amended standards did not have a material impact on our financial position, results from
operations, or disclosures in the year ended March 31, 2014.
Basis of preparation
These consolidated financial statements are presented in euro millions, the euro being the functional currency of the
parent entity and the majority of the group companies. They are prepared on the historical cost basis, except for
derivative financial instruments and available-for-sale securities which are stated at fair value, and share-based
payments, which are based on fair value determined as at the grant date of the relevant share options. Certain non-current
assets, when they are classified as held for sale, are stated at the lower of cost and fair value less costs to sell.
Critical accounting policies
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
These estimates and associated assumptions are based on historical experience and various other factors believed to be
reasonable under the circumstances, and the results of such estimates form the basis of judgements about carrying values of
assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from these
estimates. These underlying assumptions are reviewed on an ongoing basis. A revision to an accounting estimate is
recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the
revision and future periods if these are also affected. Principal sources of estimation uncertainty have been set forth in
the critical accounting policies section below. Actual results may differ from estimates.
The Company believes that its critical accounting policies, which are those that require management's most difficult,
subjective and complex judgements, are those described in this section. These critical accounting policies, the judgements
and other uncertainties affecting application of these policies and the sensitivity of reported results to changes in
conditions and assumptions are factors to be considered in reviewing the consolidated financial statements.
Long-lived assets
As of March 31, 2014, Ryanair had E5.1 billion of property, plant and equipment long-lived assets, virtually all of which
consisted of aircraft. In accounting for long-lived assets, Ryanair must make estimates about the expected useful lives of
the assets, the expected residual values of the assets and the potential for impairment based on the fair value of the
assets and the cash flows they generate.
In estimating the lives and expected residual values of its aircraft, Ryanair has primarily relied on its own and industry
experience, recommendations from Boeing, the manufacturer of all of the Company's aircraft, and other data available in the
marketplace. Subsequent revisions to these estimates, which can be significant, could be caused by changes to Ryanair's
maintenance programme, changes in utilisation of the aircraft, changes to governmental regulations on aging aircraft, and
changing market prices for new and used aircraft of the same or similar types. Ryanair evaluates its estimates and
assumptions in each reporting period, and, when warranted, adjusts these assumptions. Generally, these adjustments are
accounted for on a prospective basis, through depreciation expense.
Ryanair periodically evaluates its long-lived assets for impairment. Factors that would indicate potential impairment would
include, but are not limited to, significant decreases in the market value of an aircraft, a significant change in an
aircraft's physical condition and operating or cash flow losses associated with the use of the aircraft. While the airline
industry as a whole has experienced many of these factors from time to time, Ryanair has not yet been seriously impacted
and continues to record positive cash flows from these long-lived assets. Consequently, Ryanair has not yet identified any
impairments related to its existing aircraft fleet. The Company will continue to monitor its long-lived assets and the
general airline operating environment.
The Company's estimate of the recoverable amount of aircraft residual values is 15% of current market value of new
aircraft, determined periodically, based on independent valuations and actual aircraft disposals during prior periods.
Aircraft are depreciated over a useful life of 23 years from the date of manufacture to residual value.
Heavy maintenance
An element of the cost of an acquired aircraft is attributed, on acquisition, to its service potential, reflecting the
maintenance condition of the engines and airframe.
For aircraft held under operating lease agreements, Ryanair is contractually committed to either return the aircraft in a
certain condition or to compensate the lessor based on the actual condition of the airframe, engines and life-limited parts
upon return. In order to fulfill such conditions of the lease, maintenance, in the form of major airframe overhaul, engine
maintenance checks, and restitution of major life-limited parts, is required to be performed during the period of the lease
and upon return of the aircraft to the lessor. The estimated airframe and engine maintenance costs and the costs associated
with the restitution of major life-limited parts, are accrued and charged to profit or loss over the lease term for this
contractual obligation, based on the present value of the estimated future cost of the major airframe overhaul, engine
maintenance checks, and restitution of major life-limited parts, calculated by reference to the number of hours flown or
cycles operated during the year.
Ryanair's aircraft operating lease agreements typically have a term of seven years, which closely correlates with the
timing of heavy maintenance checks. The contractual obligation to maintain and replenish aircraft held under operating
lease exists independently of any future actions within the control of Ryanair.
While Ryanair may, in very limited circumstances, sub-lease its aircraft, it remains fully liable to perform all of its
contractual obligations under the 'head lease' notwithstanding any such sub-leasing.
Both of these elements of accounting policies involve the use of estimates in determining the quantum of both the initial
maintenance asset and/or the amount of provisions to be recorded and the respective periods over which such amounts are
charged to income. In making such estimates, Ryanair has primarily relied on its own and industry experience, industry
regulations and recommendations from Boeing; however, these estimates can be subject to revision, depending on a number of
factors, such as the timing of the planned maintenance, the ultimate utilisation of the aircraft, changes to government
regulations and increases or decreases in estimated costs. Ryanair evaluates its estimates and assumptions in each
reporting period and, when warranted, adjusts its assumptions, which generally impact maintenance and depreciation expense
in the income statement on a prospective basis.
Tax Audits
Income tax on the profit or loss for the year comprises current and deferred tax. Current tax payable on taxable profits
is recognised as an expense in the period in which the profits arise using tax rates enacted or substantively enacted at
the balance sheet date. Deferred tax is provided in full, using the balance sheet liability method on temporary
differences arising from the tax basis of assets and liabilities and their carrying amount in the consolidated financial
statements.
Social insurance, passenger taxes and sales taxes are recorded as a liability based on laws enacted in the jurisdictions to
which they relate. Liabilities are recorded when an obligation has been incurred.
Ryanair reviews its tax obligations by jurisdiction regularly. There are many complexities and judgements in determining
tax obligations due to the inherent complexity of tax law, the manner in which airline businesses are carried out whereby
operations can begin and end in different jurisdictions and assumptions made about the timing and amount of individual
balances to be included in financial statements and tax returns.
Ryanair has an internal tax group and takes professional advice on more complex matters in estimating its tax liabilities.
Ryanair also deals extensively with revenue authorities in each jurisdiction in which it operates. Tax liabilities are
based on the best estimate of the likely obligation at each reporting period. These estimates are subject to revision
based on the outcome of tax audits and discussions with revenue authorities that can take several years to conclude.
Basis of consolidation
The consolidated financial statements comprise the financial statements of Ryanair Holdings plc and its subsidiary
undertakings as of March 31, 2014. Subsidiaries are entities controlled by Ryanair. Control exists when Ryanair is exposed
or has rights to variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee.
All inter-company account balances and any unrealised income or expenses arising from intra-group transactions have been
eliminated in preparing the consolidated financial statements.
The results of subsidiary undertakings acquired or disposed of in the period are included in the consolidated income
statement from the date of acquisition or up to the date of disposal. Upon the acquisition of a business, fair values are
attributed to the separable net assets acquired.
Foreign currency translation
Items included in the financial statements of each of the group entities are measured using the currency of the primary
economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are
presented in euro, which is the functional currency of the majority of the group entities.
Transactions arising in foreign currencies are translated into the respective functional currencies at the rates of
exchange in effect at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are
re-translated at the rate of exchange prevailing at the balance sheet date. Non-monetary assets and liabilities denominated
in foreign currencies are translated to euro at foreign exchange rates in effect at the dates the transactions were
effected. Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences
arising on qualifying cash-flow hedges, which are recognised in other comprehensive income.
Property, plant and equipment
Property, plant and equipment is stated at historical cost less accumulated depreciation and provisions for impairments, if
any. Cost includes expenditure that is directly attributable to the acquisition of the asset. Cost may also include
transfers from other comprehensive income of any gain or loss on qualifying cash-flow hedges of foreign currency purchases
of property, plant and equipment. Depreciation is calculated so as to write off the cost, less estimated residual value, of
assets on a straight-line basis over their expected useful lives at the following annual rates:
Rate of Depreciation
Hangar and buildings........................................................................................................................ 5%
Plant and equipment (excluding aircraft)......................................................................................... 20-33.3%
Fixtures and
- More to follow, for following part double click ID:nRSd7552NlRecent news on Ryanair Holdings
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