Operations Review Directors and Other Information Report of the Directors Statement of Directors' Responsibilities Report of the Auditors Principal Accounting Policies Profit and Loss Account Balance Sheet Cash Flow Statement Notes to the Financial Statements
  1. PAYROLL AND RELATED COSTS
  2. (A) MATERIALS AND SERVICES (B) EXCEPTIONAL ITEM
  3. DEPRECIATION AND LOSS ON DISPOSAL OF TANGIBLE ASSETS
  4. TANGIBLE FIXED ASSETS
  5. STOCKS
  6. DEBTORS
  7. CREDITORS
  8. PROVISIONS FOR LIABILITIES AND CHARGES
  9. DEFERRED INCOME
  10. SHARE CAPITAL
  11. ASSET REPLACEMENT RESERVE
  12. RECONCILIATION OF MOVEMENT IN SHAREHOLDERS’ FUNDS
  13. CASH FLOW STATEMENT
  14. OPERATING LEASE OBLIGATIONS
  15. PENSIONS
  16. CAPITAL COMMITMENTS
  17. CONTINGENT LIABILITIES
  18. NET SURPLUS/DEFICIT BY ACTIVITY
  19. RELATED PARTIES
  20. PUBLIC SERVICE OBLIGATION PAYMENT
  21. MEMBERSHIP OF CÓRAS IOMPAIR ÉIREANN GROUP
  22. APPROVAL OF FINANCIAL STATEMENTS

Principal Accounting Policies

The significant accounting policies and estimation techniques adopted by the company are as follows:

(A) Basis of Accounting
The financial statements have been prepared in accordance with accounting standards generally accepted in Ireland and Irish statute comprising the Companies Acts, 1963 to 2009. Accounting standards generally accepted in Ireland in preparing financial statements giving a true and fair view are those published by the Institute of Chartered Accountants in Ireland and issued by the Accounting Standards Board.

(B) Revenue
Revenue comprises the gross value of services provided.

(C) Tangible Assets and Depreciation
Tangible assets are stated at historical cost less accumulated depreciation based on that historical cost.

The bases of calculation of depreciation are as follows:

(i) Road passenger vehicles
The historical costs of road passenger vehicles other than school buses are depreciated over their expected useful lives on a reducing percentage basis which reflects the vehicles’ usage throughout their lives. The historical costs of school buses are depreciated in equal annual instalments over their expected useful lives.

(ii) Plant and machinery
Plant and machinery are depreciated, by equal annual instalments, on the basis of historical cost spread over their expected useful lives.

(D) Leased Assets
Operating leases
Rental payments under operating leases are charged to the profit and loss account as they accrue.

(E) Stocks
Stocks of materials and spare parts are valued at the lower of average cost and net realisable value.

Stocks which are known to be obsolete at the balance sheet date are written off, and provision is made in respect of stocks which may become obsolete in the future.

(F) Public Service Obligation Payments and Grants
(i) Public Service Obligation payment
Public Service Obligation payments received during the year are dealt with in the profit and loss account.

(ii) European Union and Exchequer grants
European Union (EU) and Exchequer grants which relate to capital expenditure are credited to deferred income as they become receivable. They are amortised to the profit and loss account on the same basis as the related assets are depreciated.

(G) Foreign Currency
Transactions denominated in a foreign currency are translated into euro at the rate ruling at the date of the transaction, or at contract rates where the amounts payable or receivable are covered by forward contracts.

Realised exchange gains or losses on transactions settled during the year are treated as part of the surplus or deficit for the year from ordinary activities.
Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates ruling at the balance sheet date or at contract rates where applicable.

(H) Pensions
The expected cost of providing pensions to employees is charged to the profit and loss account as incurred over the period of employment of pensionable employees. The cost is calculated, with the benefit of advice from independent actuaries, at what is expected to be a stable percentage of pensionable pay. Variations from regular pension costs, identified by periodic actuarial valuations, are spread over the expected average remaining service lives of the members of the scheme.

The capital cost of supplementary pensions is provided for and charged to the profit and loss account in the year that the related employee severance is recognised and is included in the cost of severance.