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
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
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
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.