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Financial Statements
2.4.2 Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the
specific software. These costs are depreciated over their estimated useful lives (3 to 4 years).
Costs associated with developing or maintaining computer software programmes are recognised as an expense as
incurred. Costs that are directly associated with the development of identifiable and unique software products controlled
by the Company, and that will probably generate economic benefits exceeding costs beyond one year, are recognised
as intangible assets. Costs include the employee costs incurred as a result of developing software and an appropriate
portion of relevant overheads.
Computer software development costs that recognised as assets are depreciated over their estimated useful lives (3 to
4 years).
2.5 Impairment of non-financial assets
Assets, such as the service concession intangible asset, that are subject to amortisation are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs to sell and value in use. If the recoverable amount is lower than the
carrying amount, the difference is recognised as an impairment loss in the income statement and the carrying amount
of the asset is reduced by the same amount. For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than
goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
2.6 Financial assets
2.6.1 Classification
The Company classifies its financial assets depending on the purpose for which the financial assets were acquired.
Management determines the classification of its financial assets at initial recognition.
The Company has two classes of financial assets comprising held-to-maturity investments and loans and receivables. It
does not hold any financial assets at fair value through profit and loss nor any available for sale financial assets.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market. They are included in current assets, except for maturities greater than 12 months after the end of
the reporting date, which are classified as non-current assets. The Company’s loans and receivables recognised in the
statement of financial position comprise “Trade and other receivables” and “Cash and cash equivalents”. Refer to notes
2.8 and 2.9 respectively.
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed
maturities that company’s management has the positive intention and ability to hold to maturity, other than:
• those that the Company upon initial recognition designates at fair value through profit or loss
• those that the Company designates as available for sale
• those that meet the definition of loans and receivables
2.6.2 Recognition and measurement
Regular-way purchases and sales of financial assets are recognised on trade date – the date on which the Company
commits to purchase or sell the asset.
Loans and receivables are initially recognised at fair value and are subsequently measured at amortised cost using the
effective interest rate method.
Held-to-maturity financial assets are initially recognised at amortised cost and are subsequently measured at amortised
cost using the effective interest rate method.
Financial assets are derecognised only when the contractual rights to the cash flows from the financial asset expire or
the Company transfers substantially all risks and rewards of ownership.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 23 of 54
2.4.2 Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the
specific software. These costs are depreciated over their estimated useful lives (3 to 4 years).
Costs associated with developing or maintaining computer software programmes are recognised as an expense as
incurred. Costs that are directly associated with the development of identifiable and unique software products controlled
by the Company, and that will probably generate economic benefits exceeding costs beyond one year, are recognised
as intangible assets. Costs include the employee costs incurred as a result of developing software and an appropriate
portion of relevant overheads.
Computer software development costs that recognised as assets are depreciated over their estimated useful lives (3 to
4 years).
2.5 Impairment of non-financial assets
Assets, such as the service concession intangible asset, that are subject to amortisation are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs to sell and value in use. If the recoverable amount is lower than the
carrying amount, the difference is recognised as an impairment loss in the income statement and the carrying amount
of the asset is reduced by the same amount. For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than
goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
2.6 Financial assets
2.6.1 Classification
The Company classifies its financial assets depending on the purpose for which the financial assets were acquired.
Management determines the classification of its financial assets at initial recognition.
The Company has two classes of financial assets comprising held-to-maturity investments and loans and receivables. It
does not hold any financial assets at fair value through profit and loss nor any available for sale financial assets.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market. They are included in current assets, except for maturities greater than 12 months after the end of
the reporting date, which are classified as non-current assets. The Company’s loans and receivables recognised in the
statement of financial position comprise “Trade and other receivables” and “Cash and cash equivalents”. Refer to notes
2.8 and 2.9 respectively.
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed
maturities that company’s management has the positive intention and ability to hold to maturity, other than:
• those that the Company upon initial recognition designates at fair value through profit or loss
• those that the Company designates as available for sale
• those that meet the definition of loans and receivables
2.6.2 Recognition and measurement
Regular-way purchases and sales of financial assets are recognised on trade date – the date on which the Company
commits to purchase or sell the asset.
Loans and receivables are initially recognised at fair value and are subsequently measured at amortised cost using the
effective interest rate method.
Held-to-maturity financial assets are initially recognised at amortised cost and are subsequently measured at amortised
cost using the effective interest rate method.
Financial assets are derecognised only when the contractual rights to the cash flows from the financial asset expire or
the Company transfers substantially all risks and rewards of ownership.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 23 of 54
