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Annual Report & Accounts 2014 - NOTES TO THE COMPANY FINANCIAL STATEMENTS
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1. SiGniFiCant aCCoUntinG poliCieS continued 1.6 Financial instruments (continued) 1.6.2 Available for Sale Financial Assets (AFS) AFS financial assets are non-derivative financial assets that are either designated to this category or do not qualify for inclusion in any of the other categories of financial assets. The Company's AFS financial assets include the equity investment in BHL. AFS financial assets are measured at fair value. Gains and losses are recognised in the statement of total recognised gains and losses, except for interest and dividend income, impairment losses and foreign exchange differences on monetary assets, which are recognised in profit or loss. When the asset is disposed of or is determined to be impaired, the cumulative gain or loss recognised in the statement of total recognised gains and losses is reclassified to profit or loss. Interest calculated using the effective interest method and dividends are recognised in profit or loss within finance income. For AFS equity investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised in the statement of total recognised gains and losses. 1.6.3 Derivative Financial Instruments Derivative financial instruments are accounted for at fair value through profit and loss (FVTPL). The options associated with the Company's investment in BHL are considered derivative financial instruments and are carried at their fair value which is re-measured at each reporting date. Any movements in fair value are taken to the profit and loss account. 1.6.4 Impairment of Financial Assets Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. Objective evidence of impairment could include: • significant financial difficulty of the issuer or counterparty; or • breach of contract, such as a default or delinquency in interest or principal payments; or • it becoming probable that the borrower will enter bankruptcy or financial re-organisation; or • the disappearance of an active market for that financial asset because of financial difficulties. 1.7 Related party transactions Financial Reporting Standard 8, 'Related Party Transactions', requires the disclosure of the details of material transactions between the reporting entity and related parties. The Company has taken advantage of exemptions under FRS 8 not to disclose transactions between wholly owned Group companies. 1.8 Financial instruments Disclosures The company has taken advantage of the exemptions conferred by FRS 29 'Financial Instruments: Disclosures' and has not provided financial instruments disclosures in the individual accounts of the parent company. 2. pRoFit anD loSS aCCoUnt The loss for the year dealt with in the accounts of the Company was €409,000 (2013: profit of €3,018,000). The Company has not presented a separate profit and loss account. 3. inVeStmentS 2014 2013 €000's €000's investment in subsidiary undertakings At 1 January 148,563 64,154 Additions - 84,409 At 31 December 148,563 148,563 GVC HOLDINGS PLC ANNUAL REPORT 2014 71 Company FinanCial StatementS