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Annual Report & Accounts 2009 - Notes
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27 Adoption of IFRS 8 "Operating Segments" This standard has been applied retrospectively. The accounting policy for identifying segments is now based on internal management reporting information that is regularly reviewed by the chief operating decision maker. The primary reporting format of management information is by brand, and therefore segmental information is presented by brand in the notes to the consolidated financial statements. In contrast, IAS 14 required the Group to identify two sets of segments (business and geographical) based on risks and rewards of the operating segments. In the 2008 consolidated financial statements, segmental information was primarily split by business. The Group has identified the following reportable operating segments for this year's consolidated financial statements: CasinoClub; Betaland; Winzingo; Betboo. Each of these operating segments generates independent revenues and the risks and rewards associated with generating these revenues are considered to be different to those of the other products offered by the Group. Costs of share option schemes and taxation is not allocated to individual operating segments. There have been no changes from prior periods in the measurement methods used to determine reported segment results. The new format of presenting segmental information can be found in note 5. Adoption of amendments to IFRS 7 "Financial Instruments: Disclosures" - improving disclosures about financial instruments The amendments require additional disclosures for financial instruments that are measured at fair value in the consolidated balance sheet. The Group's balance sheet includes no financial instruments measured at fair value through profit or loss, and therefore management have not amended the format of the financial instruments disclosures from prior years. Adoption of IFRIC Interpretation 13 "Customer Loyalty Programmes" IFRIC 13 Customer Loyalty Programmes clarifies that when goods or services are sold together with a customer loyalty incentive (for example, loyalty points or the right to free products), the arrangement is a multiple-element arrangement and the consideration receivable from the customer is allocated between the components of the arrangement using fair values. The Group's accounting policy in respect of promotional bonuses (which include loyalty bonuses) is stated in note 1.11. The Group has considered the implications of the interpretation stated in IFRIC 13, and do not believe that the adoption of IFRIC 13 would have a significant impact on the reported results for the current and prior reporting periods. Therefore, no retrospective adjustment to the financial statements is required in respect of the adoption of IFRC 13. New standards not yet effective A number of new standards, amendments to standards and interpretations are not yet effective for the year ended 31 December 2009 and have not been applied in preparing these consolidated financial statements. Those which may have a significant effect on the financial statements are: Revised IFRS 3 - Business Combinations (effective from 1 July 2009) The standard is applicable for business combinations occurring in reporting periods beginning on or after 1 July 2009 and will be applied prospectively The new standard introduces changes to the accounting requirements for business combinations, but still requires use of the purchase method, and will have a significant effect on business combinations occurring in future reporting periods. Revised IAS 27 - Consolidated and Separate Financial Statements (effective from 1 July 2009) The revised standard introduces changes to the accounting requirements for the loss of control of a subsidiary and for changes in the Group's interest in subsidiaries. These changes will be applied prospectively in accordance with the transitional provisions and so do not have an immediate effect on the Group's financial statements.