Page 61 - 2board23full
P. 61
2011
2.21 Fair value estimation
The Company does not have any financial assets or liabilities that are carried at fair value at the balance sheet date.
For financial statement disclosure purposes:
• The carrying amounts of trade receivables and payables are assumed to approximate their fair values at the balance
sheet date.
• The fair value of borrowings is estimated by discounting the future contractual cash flows at current market interest
rates that are available to the Company for similar financial instruments.
2.22 Associates
Associates are all entities over which the Company has significant influence but not control, generally accompanying a
shareholding of between 20% and 50% of the voting rights. Investments in associates are initially recognised at cost
and subsequently at cost less any impairment losses. Dividend income is recognised when the right to such income is
established.
The Company’s investment in its associate amounts to 3.2m as of 31 December 2011 represents less than 1% of total
assets at that date. This investment has not been accounted for under the equity method of accounting on the basis that
it is not considered to be material to the Company’s operations and the departure from IAS 28 is unlikely to influence the
economic decision of the users of these financial statements.
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 26 of 50
2.21 Fair value estimation
The Company does not have any financial assets or liabilities that are carried at fair value at the balance sheet date.
For financial statement disclosure purposes:
• The carrying amounts of trade receivables and payables are assumed to approximate their fair values at the balance
sheet date.
• The fair value of borrowings is estimated by discounting the future contractual cash flows at current market interest
rates that are available to the Company for similar financial instruments.
2.22 Associates
Associates are all entities over which the Company has significant influence but not control, generally accompanying a
shareholding of between 20% and 50% of the voting rights. Investments in associates are initially recognised at cost
and subsequently at cost less any impairment losses. Dividend income is recognised when the right to such income is
established.
The Company’s investment in its associate amounts to 3.2m as of 31 December 2011 represents less than 1% of total
assets at that date. This investment has not been accounted for under the equity method of accounting on the basis that
it is not considered to be material to the Company’s operations and the departure from IAS 28 is unlikely to influence the
economic decision of the users of these financial statements.
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 26 of 50
