1. siGnificant accountinG policies
this note from pages 28 to 61 deals with both the significant accounting policies used in the preparation of these financial
statements, together with a note identifying new accounting standards which will affect the group.
gVc holdings pLc is a company registered in the isle of man and was incorporated on 5 January 2010. it is the successor
company of gaming Vc holdings s.A. and took the assets of gaming Vc holdings s.A. on 21 may 2010 after formal approval
by shareholders. the consolidated financial statements of the group for the year ended 31 December 2014 comprise the
company and its subsidiaries (together referred to as the 'group').
on the 19 march 2013 the group completed the acquisition of sportingbet pLc. management views the enlarged group as
having one business line which it has worked hard at integrating since acquisition. Within that one business line there are
two distinct operating segments, sports and gaming. gaming includes casino, poker and Bingo. As a result of the
sportingbet acquisition the revenues of east pioneer corporation B.V. are now fully consolidated into the group.
the significant subsidiary undertakings of the group are listed in note 22.
1.1 statement of compliance
the consolidated financial statements have been prepared in accordance with international Financial Reporting standards
(iFRss), as adopted by the european union.
the Directors have reviewed the accounting policies used by the group and consider them to be the most appropriate. the
accounting policies are consistent with the prior year with the exception of revisions and amendments to iFRs issued by
the iAsB, which are relevant to and effective for the annual period beginning 1 January 2014. there was no material effect
on current, prior or future periods arising from the first-time application of these new requirements in respect of presentation,
recognition and measurement are described more fully in note 1.2.
1.2 Basis of preparation
the financial information, which comprises the consolidated income statement, the consolidated statement of comprehensive
income, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated statement of
cash flows and related notes, is derived from the group financial statements for the year ended 31 December 2014, which
have been prepared under international Financial Reporting standards as adopted by the european union (iFRs) and
those parts of the isle of man companies Act 2006 applicable to companies reporting under iFRs.
the financial statements are presented in the euro, rounded to the nearest thousand, and are prepared on the historical
cost basis with the exception of those assets and liabilities carried at fair value. the financial statements are prepared on
the going concern basis (see note 25).
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using
another valuation technique. in estimating the fair value of an asset or a liability, the group takes into account the
characteristics of the asset or liability if market participants would take those characteristics into account when pricing the
asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated
financial statements is determined on such a basis, except for share-based payment transactions that are within the scope
of iFRs 2, leasing transactions that are within the scope of iAs 17, and measurements that have some similarities to fair
value but are not fair value, such as net realisable value in iAs 2 or value in use in iAs 36.
the preparation of financial statements in conformity with iFRss requires directors to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
the estimates and associated assumptions are based on various factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from these estimates.
the estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision
and future periods if the revision affects both current and future periods.
significant accounting estimates and judgements are discussed in further detail in note 24.
the accounting policies set out below have been applied consistently to all periods presented in these consolidated financial
the accounting policies have been applied consistently by group entities.
ANNUAL REPORT 2014 28
notes to the consolidated financial statements continued
for the year ended 31 december 2014