Annual Report & Accounts 2015 - NOTES TO THE COMPANY FINANCIAL STATEMENTS
1. accoUntinG policies
these financial statements were prepared in accordance with Financial reporting standard 101 'Reduced disclosure Framework'.
a summary of the significant accounting policies are set out below, these policies have been applied consistently to the periods
presented, unless otherwise stated.
1.1 Basis of preparation
the financial information has been prepared on the historical cost basis with the exception of those assets and liabilities which
are carried at fair value, and in accordance with applicable isle of man law and United Kingdom accounting standards. during
the year the Company adopted FRs 101 'Reduced disclosure Framework' and has undergone transition from reporting under
UK GaaP (UK Generally accepted accounting Practice). this transition is not considered to have a material effect on the financial
statements. the Company intends to continue reporting under FRs 101 in the next financial year.
as permitted under FRs 101, the Company has taken advantage of the disclosure exemptions available under that standard in
relation to share-based payments, business combinations, financial instruments, fair values, presentation of a cash flow statement
and certain related party transactions. Where required, equivalent disclosures are given in the consolidated financial statements.
investments in subsidiary undertakings are stated at cost less amounts written off.
1.3 foreign currency translation
the Company maintains its accounting records in euro and the balance sheet and profit and loss account are expressed in this
currency. income and charges are translated at the exchange rates ruling at the transaction date. Fixed assets are valued using
historical exchange rates. other current assets and liabilities expressed in foreign currencies are translated into euros at the
rates of exchange in effect at the balance sheet date. Realised exchange gains and losses and unrealised exchange losses are
recognised in the profit and loss account.
1.4 fixed assets
investments in subsidiaries are shown as fixed assets in the Company balance sheet, and are valued at cost less any provision
for impairment in value.
1.5 share Based payments
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 options.
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.
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.
1.6 financial instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
Financial assets and financial liabilities are initially measured at fair value. transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate,
on initial recognition. transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value
through profit or loss are recognised immediately in profit or loss.
1.6.1 Non-derivative Financial instruments
Non-derivative financial instruments comprise debtors, loans and borrowings, and trade and other creditors. 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.
94 GVC HOLDINGS PLC ANNUAL REPORT 2015
notes to the company financial statements
for the year ended 31 december 2015