The Shannon Airport Group Annual Report and Accounts 2024

Annual Report and Accounts | 2024

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1.20 Investment in subsidiaries (Company only) The investment in subsidiaries was initially established on their transfer to the Company and continues to be carried at that amount less any provision for impairment if required. 1.21 New Standards and Interpretations Standards in issue but not effective A number of new International Financial Reporting Standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2024, and have not been applied in preparing these financial statements. The most significant of these which may impact the Group are outlined below. The Group does not plan to adopt these standards early; instead it will apply them from their effective dates as determined by their dates of EU endorsement.

1. MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. A discontinued operation is a component of the Group’s business, the operations and cash flows of which can be clearly distinguished from the rest of the Group and which: • represents a separate major line of business or geographic area of operations; • is part of a single co-ordinated plan to dispose of a separate major line of business or geographic area of operations; or • is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held-for-sale. When an operation is classified as a discontinued operation, the comparative statement of profit or loss and OCI is re-presented as if the operation had been discontinued from the start of the comparative year. 1.18 Deferred income Deferred income comprises capital grants. Capital grants Capital grants are initially recognised as deferred income at fair value if there is reasonable assurance that they will be received and the group will comply with the conditions associated with the grant. EU and other grants received in respect of the purchase of property, plant and equipment are treated as deferred income, and are amortised to the Statement of Profit or Loss over the useful economic life of the asset to which they relate. 1.19 Revenue Grants Revenue grants that compensate the Group for expenses incurred are recognised in profit or loss on a systematic basis in the periods in which the expenses are recognised. Revenue grants which are directly related to revenue are recognised as a credit to revenue on a systematic basis in the periods in which the revenue is recognised.

Derecognition The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Financial liabilities Classification and subsequent measurement Financial liabilities are classified as measured at amortised cost or fair value through profit or loss. A financial liability is classified as at fair value through profit or loss if it is classified as held for trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at fair value through profit or loss are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss. Derecognition The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non cash assets transferred or liabilities assumed) is recognised in profit or loss. 1.17 Assets held for sale and discontinued operations Non-current assets (including investment properties) or disposal groups comprising assets and liabilities, are

Standard

IASB effective date (periods beginning)

EU companies effective date (periods beginning)

Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued on 15 August 2023)

1 January 2025

Not yet endorsed

Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7) (issued on 18 December 2024)

1 January 2026

Not yet endorsed

Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) (issued on 30 May 2024)

1 January 2026

Not yet endorsed

IFRS 18 Presentation and Disclosure in Financial Statements (issued on 9 April 2024)

1 January 2027

Not yet endorsed

New standards adopted in the current year The following new amendments were adopted by the Group for the first time in the current financial reporting period.

Standard

IASB effective date (periods beginning)

EU companies effective date (periods beginning)

Amendments to IAS 1: Classification of Liabilities as Current or Noncurrent (issued on 15 July 2020)

1 January 2024

Amendments to IAS 1: Non-current Liabilities with Covenants (issued on 31 October 2022)

For all changes to standard(s) above the Group has changed its accounting policies accordingly, which did not have a material impact on the financial results or financial position of the Group. 1.22 Critical accounting estimates and judgements The preparation of financial statements in conformity with EU IFRS requires management to make judgments, estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and assumptions The areas where assumptions and estimates are significant to the Group financial statements relate primarily to the following items. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources.