Annual Report 2016

45A5A81B-4BAF-4723-BFB4-09983CA05A23 Created with sketchtool.

33. (J) Transition to FRS 101

The Company’s date of transition to FRS 101 is 27 March 2014.

The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 30 March 2016, the comparative information presented in these financial statements for the year ended 25 March 2015 and in the preparation of an opening FRS 101 balance sheet at 27 March 2014 (the Company’s date of transition). The Company have availed of the exemption not to present the Company transition date balance sheet in these financial statements.

In preparing its opening FRS 101 balance sheet, the Group has adjusted amounts reported previously in financial statements prepared in accordance with Irish GAAP (previous GAAP). An explanation of how the transition from previous GAAP to FRS 101 has affected the Group’s financial position and financial performance is set out below:

The key adjustments on transition to IFRS relate to:

  • Recognition of the RWESS and GESS pension schemes on the Company balance sheet; and
  • Derivatives and hedge accounting;

Recognition of the RWESS and GESS pension schemes on the Company balance sheet

In accordance with FRS 101, the sponsoring entity of a company pension plan must recognise the scheme on its financial statements.

Under Irish GAAP, the schemes were recognised in the preparation of the consolidated financial statements and were not on the balance sheet of any single entity in the Group. Under IFRS, these schemes were brought on to the balance of the parent Company. This resulted in a combined net deficit of the above two schemes totalling €32.8 million (including deferred tax impact) being recognised as a liability on the transition date.

Derivatives and hedge accounting

The adjustments in respect of unsecured loan notes made in the financial statements of the Company are identical to those made in the transition note contained in the consolidated financial statements (Note 29).

Reconciliation of equity from Irish GAAP to FRS 101

The below table reconciles total equity from Irish GAAP to FRS 101 at 27 March 2014 (the transition date) and 25 March 2015:

25 March 2015
€’000
27 March 2014
€’000
Equity (Irish GAAP)126,557142,085
Recognition of pension schemes(53,448)(32,843)
Unsecured loan notes(2,517)20
Equity (FRS 101 )70,592109,262