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Annual Report & Accounts 2009 - Notes
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26 1.17 Financial instruments The Group's financial assets are all classified as loans and receivables and comprise trade and other receivables and cash and cash equivalents. The Group's financial liabilities comprise trade and other payables and deferred consideration in relation to Betboo, and bank borrowings to the extent they exist. 1.17.1 Non-derivative financial instruments Non-derivative financial instruments comprise trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Non-derivative financial instruments are recognised initially at fair value, plus, for instruments not at fair value through profit or loss, any directly attributable transaction costs. Subsequent to initial recognition, non-derivative financial instruments are measured at amortised cost using the effective interest method. Provisions for impairment are made against financial assets if considered appropriate and any impairment is recognised in profit or loss. 1.17.2 Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Group's cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. Accounting for financial income and financial expense is discussed in notes 1.14 and 1.12.1 respectively. 1.18 Equity Equity comprises the following: "Share capital" represents the nominal value of equity shares. "Share premium" represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issue. "Retained earnings" represents retained profits. 2. NEW ACCOUNTING AND REPORTING STANDARDS Adoption of IAS 1 "Presentation of Financial Statements" (Revised 2007) The Group has adopted IAS 1 "Presentation of Financial Statements" (Revised 2007) in its consolidated financial statements. This standard has been applied retrospectively. The adoption of the standard does not affect the financial position or profits of the Group, but gives rise to additional disclosures. The measurement and recognition of the Group's assets, liabilities, income and expenses is unchanged. The standard affects the presentation of owner changes in equity and introduces a "Consolidated Statement of Comprehensive Income" as a primary statement. The "Consolidated Statement of Recognised Income and Expenses" as was presented in the 2008 consolidated financial statements is no longer required. Further, a "Statement of Changes in Equity" is presented as a primary statement. The standard requires presentations of a comparative balance sheet as at the beginning of the first comparative period, in some circumstances. Management are required to present a comparative balance sheet and have chosen to present comparatives for all other primary financial statements as at 31 December 2007, together with related notes, in the consolidated financial statements.