Paralympics Ireland

| 29 Paralympics Ireland Annual Report | 2019 | 29 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) 2.8 2.8 Cash and cash equivalents Cash and cash equivalents Cash is represented by cash in Cash is represented by cash in hand and deposits with financial institutions repayable without penalty hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertib more than three months from the date of acquisition and that are readily convertible to known amounts le to known amounts of cash with insignificant risk of change in value. of cash with insignificant risk of change in value. 2.9 2.9 Creditors Creditors Short term creditors are measured at the transaction price. Other financial liabilities, including bank Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, loans, are measured initially at fair value, including transaction costs, and are measured subsequently at including transaction costs, and are measured subsequently at amortised cost using the effective interest method. amortised cost using the effective interest method. 2.10 2.10 Financial instruments Financial instruments The company only enters into basic financial instrument transactions that result in the recognition of The company only enters into basic financial instrument transactions that result in the recognition of finan financial assets and liabilities like trade and other debtors and creditors, loans from banks and other cial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. third parties, loans to related parties and investments in ordinary shares. Debt instruments (other than those wholly repayable or receivable within one yea Debt instruments (other than those wholly repayable or receivable within one year), including loans and r), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within o payable or receivable within one year, typically trade debtors and creditors, are measured, initially and ne year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short received. However, if the arrangements of a short-term instrument constitute a fi term instrument constitute a financing transaction, nancing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out like the payment of a trade debt deferred beyond normal business terms or in case of an out-right right short short-term loan that is not at market rate, the financial asset or liability is measured, initially at the term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash f present value of future cash flows discounted at a market rate of interest for a similar debt instrument lows discounted at a market rate of interest for a similar debt instrument present value of future cash f present value of future cash flows discounted at a market rate of interest for a similar debt instrument present value of future cash f present value of future cash f and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. company, or a public benefit entity concessionary loan. Financial assets th Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting at are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income. impairment loss is recognised in the Statement of comprehensive income. For financial assets measured at amortised cost, the impairment loss is measured as the difference For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial a asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for sset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured as the diff For financial assets measured at cost less impairment, the impairment loss is measured as the difference erence For financial assets measured at cost less impairment, the impairment loss is measured as the diff For financial assets measured at cost less impairment, the impairment loss is measured as the difference For financial assets measured at cost less impairment, the impairment loss is measured as the diff For financial assets measured at cost less impairment, the impairment loss is measured as the diff between an asset's carrying amount and best estimate of the recoverable amount, which is an between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date. reporting date. Financial assets and liabilities are o Financial assets and liabilities are offset and the net amount reported in the Statement of financial ffset and the net amount reported in the Statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously to settle on a net basis or to realise the asset and settle the liability simultaneously.

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