1. siGnificant accountinG policies continued
At each reporting date, the group assesses whether there is any indication that an asset may be impaired. Where an
indicator of impairment exists, the group makes an estimate of the recoverable amount. Where the carrying amount of an
asset exceeds its recoverable amount, the asset is written down to its recoverable amount. Recoverable amount is the higher
of fair value less costs to sell and value in use and is determined for an individual asset. if the asset does not generate cash
inflows that are largely independent of those from other assets or groups of assets, the recoverable amount of the cash
generating unit to which the asset belongs is determined. Discount rates reflecting the asset specific risks and the time
value of money are used for the value in use calculation.
For goodwill and trademarks that have an indefinite useful life, the recoverable amount is estimated at each balance sheet
1.8 dividends paid to holders of share capital
Dividend distributions payable to equity shareholders are recognised through equity reserves on the date the dividend is
1.9 employee Benefits
1.9.1 pension costs
in some jurisdictions in which the group has employees, there are government or private schemes into which the employing
company or branch must make payments on a defined contribution basis, the contributions are shown in the profit or loss
account in the year.
1.9.2 share options
the group has share option schemes which allow group employees and contractors to acquire shares of the company.
the fair value of options granted is recognised as an employee expense with a corresponding increase in equity. the fair
value is measured at grant date and spread over the period during which the employees become unconditionally entitled to
the fair value of the options granted are measured using either a binomial or monte carlo valuation model. this valuation
method takes into account the terms and conditions upon which the options were granted. the amount recognised as an
expense is adjusted to reflect the actual number of share options that vest and market conditions if applicable.
payments made to repurchase or cancel vested awards are accounted for with the fair value of the options cancelled,
measured at the date of cancellation being taken to retained earnings; the balance is taken to the income statement. Also
on cancellation an accelerated charge would be recognised immediately.
see note 19 for further details of the schemes.
A provision is recognised in the balance sheet when the group has a present legal or constructive obligation as a result of
a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. if the effect is
material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and, where appropriate, the risks specific to the liability.
1.11 Revenue Recognition
net gaming Revenue ('ngR') is measured at the fair value of consideration received or receivable and comprises the
casino: net win in respect of bets placed on casino games that have concluded in the year, stated net of promotional
sportsbook: gains and losses in respect of bets placed on sporting events in the year, stated net of promotional bonuses.
open positions are carried at fair market value and gains and losses arising on this valuation are
recognised in revenue, as well as gains and losses realised on positions that have closed.
poker: net win in respect of rake for poker games that have concluded in the year, stated net of promotional
Bingo: net win in respect of bets placed on bingo games that have concluded in the year, stated net of promotional
ANNUAL REPORT 2014 32
notes to the consolidated financial statements continued
for the year ended 31 december 2014