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Annual Report & Accounts 2012 - NOTES
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GVC HOLDINGS PLC NOTES TO THE FINANCIAL STATEMENTS Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or credited directly to other comprehensive income or equity in which case the related deferred tax is also charged or credited directly to other comprehensive income or equity as appropriate. 1.17 Segment Reporting Management in the year moved from identifying its key operating segments as the Group's key brands and now follows two distinct business lines as reportable operating segments: Business to Consumer "B2C" including the brands CasinoClub and Betboo; Business to Business "B2B" includes the revenue from East Pioneer Corporation B.V. and the Group's activities in similar territories. Each of these operating segments is managed separately as each of these service lines requires different technologies and other resources as well as marketing approaches. All inter-segment transfers are carried out at arm's length prices. The measurement policies the Group uses for segment reporting under IFRS 8 are the same as those used in its financial statements. In addition, corporate assets which are not directly attributable to the business activities of any operating segment are not allocated to a segment. The prior year comparatives have been re-stated to reflect the change in Management's approach to follow the two new operating segments. 1.18 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. 1.18.1Non-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. 1.18.2Cash and Cash Equivalents Cash and cash equivalents comprise cash balances and any balances with payment processors that are repayable on demand. 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. They exclude balances in bank accounts required to be held as segregated funds. Accounting for financial income and financial expenses are discussed in notes 1.15 and 1.13 respectively. 31