## Notes to the Company Balance Sheet 

## 1. Accounting Policies 

## Basis of accounting 

The financial statements have been prepared under the historical cost convention in accordance with the Companies Acts, 1963 to 2012 and Generally Accepted Accounting Practice in the Republic of Ireland (“Irish GAAP”). The following paragraphs describe the principal accounting policies under Irish GAAP, which have been applied consistently. 

## Operating income and expense 

Operating income and expense arises from the Company’s principal activities as a holding company for the Group and are accounted for on an accruals basis. 

## Financial assets 

Fixed asset investments, including investments in subsidiaries, are stated at cost (and at valuation at 31 December 1980 for those investments in existence at that date) less any accumulated impairments and are reviewed for impairment if there are indications that the carrying value may not be recoverable. 

## Foreign currencies 

The reporting currency of the Company is euro. Transactions in foreign currencies are translated at the rates of exchange ruling at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated into euro at the rates of exchange ruling at the balance sheet date, with a corresponding charge or credit to the profit and loss account. 

## Share issue expenses and share premium account 

Costs of share issues are written off against the premium arising on issues of share capital. 

## Share-based payments 

The Company has applied the requirements of FRS 20 Share-based Payment . 

The accounting policy applicable to share-based payments is consistent with that applied under IFRS and is accordingly addressed in detail on pages 76 to 82 of the Consolidated Financial Statements. 

## Cash flow statement 

The Company has taken advantage of the exemption afforded by FRS 1 Cash Flow Statements  not to provide a statement of cash flows. 

## Treasury Shares and own shares 

Treasury Shares 

Own equity instruments (i.e. Ordinary Shares) acquired by the Company are deducted from equity and presented on the face of the Company Balance Sheet. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Company’s Ordinary Shares. 

## Own shares 

Ordinary Shares purchased by the Employee Benefit Trust on behalf of the Company under the terms of the Performance Share Plan are recorded as a deduction from equity on the face of the Company Balance Sheet. 

## Dividends 

Dividends on Ordinary Shares are recognised as a liability in the Company’s Financial Statements in the period in which they are declared by the Company 

