CLOSE FILE X 1 CORPORATE INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (continued) (c) Summary of significant accounting policies  (continued) (d) Dividends (iii) Revenue recognition  (continued) (e) Unearned income (iv) Borrowing costs (v) Leases (vi) Cash and cash equivalents (vii) Trade and other receivables (viii) Inventories (ix) Derivative financial instruments and hedging (x) Impairment of financial assets (a) Financial assets carried at amortised cost (b) Financial assets carried at cost 39 ANNUAL REPORT 2014 Revenue is recognised when the Group’s right to receive the payment is  established. Income relating to future periods is initially recorded as unearned income,  and is then recognised as revenue over the relevant periods of admission or  rendering of other services. Borrowing costs are expensed as incurred, except where they are directly  attributable to qualifying assets. Where directly attributable to a qualifying  asset, borrowing costs are capitalised as part of the cost of that asset. The determination of whether an arrangement is or contains a lease is based  on the substance of the arrangement and requires an assessment of whether  the fulfilment of the arrangement is dependent on the use of a specific asset  or assets and the arrangement conveys a right to use the asset. Finance leases, which transfer to the Group substantially all the risks and  benefits incidental to ownership of the leased item, are capitalised at the  inception of the lease at the fair value of the leased property or, if lower, at  the present value of the minimum lease payments. Lease payments are  apportioned between the finance charges and reduction of the lease liability  so as to achieve a constant rate of interest on the remaining balance of the  liability. Finance charges are recognised as an expense in profit or loss. Capitalised leased assets are depreciated over the shorter of the estimated  useful life of the asset and the lease term if there is no reasonable certainty  that the Group will obtain ownership by the end of the lease term. Operating lease payments are recognised as an expense in the profit or  loss on a straight-line basis over the lease term. Lease incentives are  recognised in the profit or loss as an integral part of the total lease expense. Cash and cash equivalents in the statement of financial position comprise  cash at bank and in hand and short-term deposits with an original maturity  of three months or less that are readily convertible to known amounts of  cash and which are subject to an insignificant risk of changes in value. For the purposes of the statement of cash flows, cash and cash equivalents  consist of cash and cash equivalents as defined above, net of outstanding  bank overdrafts. Trade receivables, which generally have 30-90 day terms, are recognised  initially at fair value and subsequently measured at amortised cost using  the effective interest rate method, less an allowance for any uncollectible  amounts. Collectability of trade receivables is reviewed on an ongoing  basis. An impairment provision is made when there is objective evidence  that the Group will not be able to collect the debts. Bad debts are written off  when identified. Objective evidence takes into account financial difficulties  of the debtor, default payments or if there are debts outstanding longer than  agreed terms. Inventories are valued at the lower of cost and net realisable value and are  accounted for on a first in first out basis. Net realisable value is the  estimated selling price in the ordinary course of business, less estimated  costs of completion and the estimated costs necessary to make the sale. The Group uses derivative financial instruments such as forward currency  contracts and interest rate swaps, caps and collars (floors and caps) to  hedge its risks associated with interest rate and foreign currency  fluctuations. Such derivative financial instruments are initially recognised  at fair value on the date on which a derivative contract is entered into and  are subsequently remeasured to fair value. Derivatives are carried as  assets when their fair value is positive and as liabilities when their fair value  is negative. Any gains or losses arising from changes in the fair value of derivatives,  except for those that qualify as effective cash flow hedges, are taken directly  to net profit or loss for the year. The fair values of forward currency contracts  and interest rate swaps, caps and collars are determined by reference to  valuations provided by the relevant counterparties, which are reviewed for  reasonableness by the Group using discounted cash flow models. For the purposes of hedge accounting, hedges are classified as cash flow  hedges when they hedge exposure to variability in cash flows that are  attributable either to a particular risk associated with a recognised asset or  liability or to a forecast transaction. A hedge of the foreign currency risk of  a firm commitment is accounted for as a cash flow hedge. At the inception of a hedge relationship, the Group formally designates and  documents the hedge relationship to which the Group wishes to apply  hedge accounting and the risk management objective and strategy for  undertaking the hedge. The documentation includes identification of the  hedging instrument, the hedged item or transaction, the nature of the risk  being hedged and how the entity will assess the hedging instrument’s  effectiveness in offsetting the exposure to changes in the hedged item’s fair  value or cash flows attributable to the hedged risk. Such hedges are  expected to be highly effective in achieving offsetting changes in fair value  or cash flows and are assessed on an ongoing basis to determine that they  actually have been highly effective throughout the financial reporting  periods for which they were designated. Cash flow hedges are hedges of the Group’s exposure to variability in cash  flows that are attributable to a particular risk associated with a recognised  asset or liability or a highly probable forecast transaction and that could  affect profit or loss. Where a hedge meets the strict criteria for hedge  accounting, the effective portion of the gain or loss on the hedging  instrument is recognised directly in other comprehensive income, while the  ineffective portion is recognised in profit or loss. Amounts taken to other comprehensive income are transferred to profit or  loss when the hedged transaction affects profit or loss, such as when hedged  income or expenses are recognised or when a forecast sale or purchase  occurs. When the hedged item is the cost of a non-financial asset or liability,  the amounts taken to other comprehensive income are transferred to the  initial carrying amount of the non-financial asset or liability. If the forecast transaction is no longer expected to occur, amounts  previously recognised in other comprehensive income are transferred to  profit or loss. If the hedging instrument expires or is sold, terminated or  exercised without replacement or rollover, or if its designation as a hedge is  revoked, amounts previously recognised in other comprehensive income  remain in other comprehensive income until the forecast transaction  occurs. If the related transaction is not expected to occur, the amount is  taken to profit or loss. The Group assesses at each reporting date whether a financial asset or  group of financial assets is impaired. If there is objective evidence that an impairment loss on loans and receivables  carried at amortised cost has been incurred, the amount of the loss is  measured as the difference between the asset’s carrying amount and the  present value of estimated future cash flows (excluding future credit losses that  have not been incurred) discounted at the financial asset’s original effective  interest rate (i.e. the effective interest rate computed at initial recognition). The  carrying amount of the asset is reduced either directly or through use of an  allowance account. The amount of the loss is recognised in profit or loss. The Group first assesses whether objective evidence of impairment exists  individually for financial assets that are individually significant, and  individually or collectively for financial assets that are not individually  significant. If it is determined that no objective evidence of impairment  exists for an individually assessed financial asset, whether significant or  not, the asset is included in a group of financial assets with similar credit  risk characteristics and that group of financial assets is collectively  assessed for impairment. Assets that are individually assessed for  impairment and for which an impairment loss is or continues to be  recognised are not included in a collective assessment of impairment. If, in a subsequent period, the amount of the impairment loss decreases and the  decrease can be related objectively to an event occurring after the impairment  was recognised, the previously recognised impairment loss is reversed. Any  subsequent reversal of an impairment loss is recognised in profit or loss, to the  extent that the carrying value of the asset does not exceed its amortised cost at  the reversal date. If there is objective evidence that an impairment loss has been incurred on  an unquoted equity instrument that is not carried at fair value (because its  fair value cannot be reliably measured), or on a derivative asset that is linked  to and must be settled by delivery of such an unquoted equity instrument,  the amount of the loss is measured as the difference between the asset’s 