Oireachtas Joint and Select Committees
Thursday, 19 September 2019
Public Accounts Committee
Bord na gCon Financial Statement 2017
9:00 am
Mr. Gerard Dollard:
This is quite a technical accounting issue. As the Comptroller and Auditor General said in his opening comments, we are obliged to do an annual impairment analysis. The Deputy referred earlier to a number of our subsidiary companies. We are currently rationalising our subsidiary company structure, eliminating subsidiaries and bringing them all in under one company. To do that, we were required to get updated valuations of individual stadia. For the impairment analysis, we had to compare the carrying value of the asset with the higher of the market value or the value in use. In short, where the market value had dropped significantly, that is what went into the accounts. Where the market value increased, as in Shelbourne Park and in Cork, where there was an increase of €7.7 million, we were not allowed to take that into the accounts. What is presented is the least favourable scenario but under our accounting policies and standards, that is the process we had to go through. As I said earlier, it does not affect cashflow or operations but those are the values of the assets that have to be stated even though they understate Shelbourne Park and Cork.
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