Paralympics Ireland

28 | Paralympics Ireland Annual Report | 2019 28 | Paralympics Ireland Financial Statements | 2019 Notes to the financial statements Notes to the financial statements For the financial year ended 31 December 2019 For the financial year ended 31 December 2019 2. 2. Accounting policies (continued) Accounting policies (continued) 2.4 2.4 Defined contribution pension plan Defined contribution pension plan The company operates a defined contribution plan for its employees. A defined contribution plan is a The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a pension plan under which the company pays fixed contributions into a separate entity. Once the separate entity. Once the contributions have been paid the company has no further payment obligations. contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the Statement of comprehensive income when they The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The liability in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds. assets of the plan are held separately from the company in independently administered funds. 2.5 2.5 Tangible fixed assets Tangible fixed assets Tangible fixed assets under the cost model are stated at historical cost less Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by ma manner intended by management. nagement. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight useful lives, using the straight-line method. line method. Depreciation is provided on the following basis: Depreciation is provided on the following basis: Motor vehicles Motor vehicles - 25% 25% straight line straight line Office equipment Office equipment - 33% straight line 33% straight line The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last prospectively if appropriate, or if there is an indication of a significant change since the last reporting reporting date. date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income. are recognised in the Statement of comprehensive income. 2.6 2.6 Impairment of fixed assets and goodwill Impairment of fixed assets and goodwill Assets that are subject to Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash may be impaired, the carrying value of the asset (or cash-generating uni generating unit to which the asset has been t to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non (CGUs). Non-financial assets that have been previously impaired are reviewed at e financial assets that have been previously impaired are reviewed at each reporting date to ach reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased. longer exist or may have decreased. 2.7 2.7 Debtors Debtors Short term debtors are measured at transaction price, less any impairment. Loan Short term debtors are measured at transaction price, less any impairment. Loans receivable are s receivable are measured initially at fair value, including transaction costs, and are measured subsequently at amortised measured initially at fair value, including transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. cost using the effective interest method, less any impairment.

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