CRH 119 Notes to the Company Balance Sheet 1. Accounting Policies Basis of accounting Operating income and expense Financial assets Foreign currencies Share issue expenses and share premium account Share-based payments Cash flow statement Treasury Shares and own shares Dividends Own shares Own equity instruments (i.e. Ordinary Shares) acquired by the Company are deducted from equity and presented on the  face of the Company Balance Sheet. No gain or loss is recognised in profit or loss on the purchase, sale, issue or  cancellation of the Company’s Ordinary Shares. Treasury Shares Ordinary Shares purchased by the Employee Benefit Trust on behalf of the Company under the terms of the Performance  Share Plan are recorded as a deduction from equity on the face of the Company Balance Sheet. Dividends on Ordinary Shares are recognised as a liability in the Company’s Financial Statements in the period in which  they are declared by the Company The accounting policy applicable to share-based payments is consistent with that applied under IFRS and is accordingly  addressed in detail on pages 76 to 82 of the Consolidated Financial Statements. The Company has taken advantage of the exemption afforded by FRS 1  Cash Flow Statements  not to provide a statement  of cash flows. Costs of share issues are written off against the premium arising on issues of share capital. The Company has applied the requirements of FRS 20  Share-based Payment .  The reporting currency of the Company is euro. Transactions in foreign currencies are translated at the rates of exchange  ruling at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated into euro at  the rates of exchange ruling at the balance sheet date, with a corresponding charge or credit to the profit and loss  account. Fixed asset investments, including investments in subsidiaries, are stated at cost (and at valuation at 31 December 1980  for those investments in existence at that date) less any accumulated impairments and are reviewed for impairment if there  are indications that the carrying value may not be recoverable. Operating income and expense arises from the Company’s principal activities as a holding company for the Group and are  accounted for on an accruals basis. The financial statements have been prepared under the historical cost convention in accordance with the Companies Acts,  1963 to 2012 and Generally Accepted Accounting Practice in the Republic of Ireland (“Irish GAAP”). The following  paragraphs describe the principal accounting policies under Irish GAAP, which have been applied consistently.