Institution international, multi-channel sports betting and gaming operator in








Institution Affiliated

Name of Institution

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Name of Student






















Paddy Power is a
global bookmaker founded of international, multi-channel sports betting and
gaming operator in 1988 in Dublin, Ireland. Paddy Power Betfair plc has four
primary brands: Paddy Power, Betfair, Sports bet and TVG. The Group currently
operates across four operating divisions. After
nearly three decades of development, the company has become a leader in the
world’s gaming industry. In the particular, online sales are growing throughout

As for the market, we can
divide into five parts which are UK, Ireland, Australia, US and Rest of the world. They are occupied by retail
and online. we have proprietary technology platforms and in-house product
development allow us to roll-out innovative products and retain. In the
management, we have advanced in-house technology which is used on our own
website. In the customer, we focus improving experiences as it can effectively
enrich competitive charm and also benefit from the generalization of online
sales. What, is more, we employ more than 7,300 employees across 16 office and
Paddy Power retail betting store. We are committed to really understanding what our
employees think we do well, what we could improve and how likely they are to
stay with the business.



A brief description of the company

Paddy Power is an Irish bookmaker founded in 1988 in Dublin, Ireland.
This annual report is provided with 2016. As for the market, Paddy Power
Betfair has four different brands: Paddy Power, Betfair, Sports bet, TVG. It
has three main trading activities: UK& Ireland, Australia, and the US. The
UK and Ireland are the largest markets, accounting for the 66% of the total
revenue. UK and Ireland are a mature, they have a huge of retails as is fully
regulated. Paddy Power and Betfair exactly follow the local tax rates
respectively. In the Australia market, customs love betting online much more
than 50% of the total proportion. “Paddy Power Betfair has TVG, which is
one of the largest online pari-mutuels in the US.” Since the legalization
of sports gambling, there will be increased offline and online.

As the most important recent about Paddy Power was merger Betfair at the
start of 2016. The two companies want to build global gambling businesses; it
is about creating a better platform for future development. They would keep the
brand in Europe to form a stronger competitiveness (Oulas virta, 2014). These are two business that will have a
market-leading position in the UK, Europe, Ireland and Australia. The merger of
business will raise revenue that is playing a slight premium. As we can
observe, Paddy Power Betfair that the world’s largest online gambling company would
observably increase the local tax.

In the next news, a brief review of the cut down the staff is given.
Paddy Power opened to move deals as industry shrinks. Under the influence of
merger, Paddy Power has the profit loss by costs of merger expenses for the
first half of the year. The company said that the second of the year has
beginning to get better. The manager decided to open moving deals for improving
income and expand online business.  On
the next step, Paddy Power cut 300Irish jobs following the merger. The
expansion of online business is a very important decision of Paddy in recent
years and it also reduces the cost to a certain extent.


IAS 1 Presentation of Financial Statements

This accounting standard illustrate some indispensable requirement of
financial report, which is included objective, scope, components of Financial
statements, presentation requirements, IFRIC 17 Distributions of Non-Cash
Assets to Owners and MCQs. Based on the standard, every company that meets the
requirements should provide complete and accurate financial statements that
should have the statements of financial position, profit or loss and other
comprehensive income, change in equity and cash flow statements.

This will be followed by a description of the nature of the problem. The
objective of IAS 1 (2007) is to prescribe the basis for presentation of general
purpose financial statements, to ensure comparability both with the entity’s
financial statements of previous periods and with the financial statements of
other entities. IAS 1 sets out the overall requirements for the presentation of
financial statements, guidelines for their structure and minimum requirements
for their content.

As a global gaming company, Paddy Power has thorough frame of financial
report, it can be served as financial information of making accurate judgment
with existing investors, creditor and users of other financial reports. Useful
financial information is based on real and reliable, it is coincided with the
principle of financial position, operating results and cash flow of company,
also being the same with IAS.

Paddy Power Betfair Plc is the name of reporting entity of annual report
2016. Paddy Power Betfair is covered group, namely Paddy Power and Betfair. In
the annual report, it gave true and fair view of the assets, liabilities and
financial position of the Group and Parent Company as at 31 December 2016 and
of the Group’s loss for the year then ended. This financial document covers the
whole year of 2016 and be approved for issue by the Board of Directors on 7
March 2017. In making the Group financial statements for 2016, the group was
converted to pound sterling from euro.

Statement of Financial

The Statement of Financial Position or balance sheet is a summary of the
financial information of the group, it is on page 126 in the annual report.
This statement contains some required accounting heading, which are non-current
assets, current assets, equity, non-current liabilities and liabilities.
According to the statements, there are some data to recorded accurate figure.
The goodwill is the highest amount in the non-current assets, these figures
were overwhelmingly greater than the corresponding figure of 2014 and 2015. It
is 3891.1m pounds at end of the 2016. As the results of completed the merger
with Betfair in the February 2016, it will significantly raise in the goodwill.
In the case of same events, in respect of intangible assets that also increase
to 581.2m pounds?Paddy Power Betfair 2016, P151, Note 11?.
The balance sheet can show the total amount of liability and its format in a
certain date, analysis of the current and future business needs to pay the
amount of debt. For instance, the trade and other payable which is 26.9m pounds
of the non-current liabilities (Paddy Power Betfair 2016, P172, Note 20). As
for the equity, it can know that how many proportion of interest in the current
investors. Capital and retained earnings are important part in the equity as
well, which can help users to analyse and forecast the ability of business.

Statement of profit or loss
and other comprehensive income

In this statement, we focus on the need for
profit or loss and other
comprehensive income(SOPLOCI) of annual report. The total income less expenses
without components of other comprehensive income refers to loss or profit as
per the item of reclassification adjustments, which are not counted for in the
profit or loss as expected or allowed IFTSs. Comprehensive is known as change
in equality during times of resultant from transactions with owners in their
capacity IAS 1.7. All income plus expenses which are known in a period should
include profit or loss unless an interpretation or standard is needed IAS
1.88. Some are included to other comprehensive income. The audit of the
financial statement of the paddy Betfair company comprises of the statement of
financial position as at a given accounting period or year, Statement of profit
or loss and other income for the period then ended before the summery of the
important accounting guides and the director’s certification statement is
issued. The management responsibility helps in coming up with financial
statement hence responsible for the presentation of the financial statement as
described in the basis of accounting, Therefore, the determination of the
management is necessary to enable for the organizing financial statement based
on the audit conducted in accordance with the Australian Audit Standards. The
compliance with the relevant ethics of audit and plan forum to gain reasonable
assurance whether financial statement is free from material misinterpretation
which may involves representation layout in obtaining audit evidence concerning
the revealed financial statement. The formulae chosen depends on the decision
of the financial auditor’s and the interpretation of the risk and material
misinterpretation of financial statement to the appropriate circumstances but
not for the purpose of showing once opinion on the effectiveness of the firm
internal control. The believe is that evidences received from financial
statement is appropriate to provide the basis for our audit reasonings which
also includes an appropriate accounting strategy used reasonably to estimate

IAS 7 Statement of Cash Flow 

The objective of IAS 7 is to require the presentation of information
about the historical changes in cash and cash equivalents of an entity by means
of a statement of cash flows, which classifies cash flows during the period
according to operating, investing, and financing activities. The statement of
cash flow has prepared inflows and outflows of cash that reflect Dynamic cash flow statements as during the period
from businesses activities.

Company Paddy Power has a
complete Consolidated cash flow statement and
is divided into it is divided into operating activities, financing
activities and investing activities, Paddy Power
group in operating activities using indirect method for the preparation of cash
flow statement and in full compliance with IAS7’s disclosure guidelines,
indirect method The basic principle is to use the net profit calculated by the
accrual basis as the starting point during the reporting period and then
convert the related items to the net cash flow generated from the current
period of business activities calculated in the cash receipt and payment
system. There are no adjustments to the beginning and the end of cash and cash
equivalents in the statements, with a value of 86.1 at the end of 2015, the
same figures for cash and cash equivalents at the beginning of 2016. Based on
the (Loss) / profit for the year – all attributable to equity holders of the
Company plus a Separately disclosed items is 272.3 m £. There is also a
non-negligible expenditure from the Merger fees and integration and
restructuring costs paid of 104.4 m £, as Paddy Power completed its acquisition
of Betfair in 2016.

In the Net cash
from operating activities, Cash acquired from merger with Betfair Group Plc.
Equivalency for cash is held with the reason of achieving short-term cash
commitments instead of investment or other purposes. In the qualification of an
investment as cash equivalency, it must be easily transformable to exact amount
figure in cash and be subjected to an important change of risk amount. So an
investment always qualifies as cash equivalent only when it has a short
maturity of about three months or less from the date acquired

Equity investments are excluded from cash equivalents
unless they are, in substance, cash equivalents, for example in the case of
preferred shares acquired within a short period of their maturity and with a
specified redemption date. Bank borrowings are generally considered to be
financing activities. However, in some countries, bank overdrafts which are
repayable on demand form an integral part of an entity’s cash management. In
these circumstances, bank overdrafts are included as a component of cash and
cash equivalents. A characteristic of such banking arrangements is that the
bank balance often fluctuates from being positive to overdrawn.  Cash flows exclude movements between items
that constitute cash or cash equivalents because these components are part of
the cash management of an entity rather than part of its operating, investing
and financing activities. Cash management includes the investment of excess
cash in cash equivalents.


Cash flows categorised in foreign currency are reported in a manner
consistent with IAS 21 The impact of changes in the foreign exchange rate which
permits the use of exchange rate appropriate to the actual rates

 For example, a weighted average exchange rate
for a period may be used for recording foreign currency transactions or the
translation of the cash flows of a foreign subsidiary. However, IAS 21 does not
permit use of the exchange rate at the end of the reporting period when
translating the cash flows of a foreign subsidiary.  Unrealized gains and losses arising from
changes in foreign currency exchange rates are not cash flows. However (Warren, 2016.), the effect of
exchange rate changes on cash and cash equivalents held or due in a foreign
currency is reported in the statement of cash flows in order to reconcile cash
and cash equivalents at the beginning and the end of the period. This amount is
presented separately from cash flows from operating, investing and financing
activities and includes the differences, if any, had those cash flows been
reported at end of period exchange rates.

IAS 16 Property, Plant and

The aim of this Standard is to describe how to handle accounting
property, industry and equipment so that users of the financial statements can
access information concerning an organisation’s asset and changes in such
investment. The key reason in accounting for property, firm and equipment are
the accountability of assets, the aim of their carrying capacity and the
decrease charges and uncounted losses to be noted in accordance with them. As
an asset, industry and equipment can be obtained for safety or surrounding reasons.
The obtainment of such asset, industry and equipment are not directly
increasing the benefits in future economy for a particular asset. Such asset,
firm and equipment qualify to be recognised as an item or property,(Oulas virta, 2014).

Some action is due to tie in construction or improving an item of a
given property, firm and equipment which are not needed in bringing the item to
a condition needed for it to be able to work in a manner expected by the
management. The situational operation may be when construction wages are earned
in the sites of work since incidental operations are not needed in bringing an
item to a place and a location where operation is necessities in a manner
expected by the management concerning the income and other related expenditure
are considered in the profit or loss in the same category of income expenses.

incidental operations are not necessary to bring an item to the location and
condition necessary for it to be capable of operating in the manner intended by
management, the income and related expenses of incidental operations are
recognized in profit or loss and included in their respective classifications
of income and expense. The cost of a self-constructed asset is determined using
the same principles as for an acquired asset. If an entity makes similar assets
for sale in the normal course of business, the cost of the asset is usually the
same as the cost of constructing an asset for sale (see IAS 2). Therefore, any
internal profits are eliminated in arriving at such costs. Similarly, the cost
of abnormal amounts of wasted material, labor, or other resources incurred in
self-constructing an asset is not included in the cost of the asset (Macve, 204). IAS 23 Borrowing
Costs establishes criteria for the recognition of interest as a component of
the carrying amount of a self-constructed item of property, plant and equipment

IFRS 16 establishes principles for the recognition, measurement,
presentation, and disclosure of leases, with the objective of ensuring that
lessees and lessons provide relevant information that faithfully represents
those transactions.



Personal learning

Actually, this is the
first time to know and study the annual report as for me. Before starting to
do, I was really nervous and not confident, I was worried about language and
form of the very first CA. But anyway, I try my best to know the International
Accounting Standard and think deeply that how to become reasonable utilization
to annual report as for company and users. In fact, that is the very
interesting experiences as I would try to look for certain figure and
percentage. I constantly find a lot of content is consistent with the knowledge
learned this semester. Through study IAS 1, I will know the IAS 1 has been
impacted by the annual report on the fundamental side, such as presentation
requirement, recognizing, measuring and disclosing specific transactions.
Because Paddy Power and Belfair had been merger in the first of the year. So,
it may need to deal with extra problems, I seem to have trouble then I have
tried to find the solution. I discovered some new words they may be helpful.
This is a process of accumulation that might be able to raise the understanding
of IAS and to be professional. Although I only had tended to consider IAS 1, IAS
7 and IAS 16 in this case, it is still hard to get all for me. Overall, this is
just a beginning, even though I have not learned the content of the first year
also English is not mother language. I think that is a good example of research
annual report on the great start. I am really looking forward to next annual
report then I will do better with strong power! . There are no adjustments to
the beginning and the end of cash and cash equivalents in the statements, with
a value of 86.1 at the end of 2015, the same figures for cash and cash
equivalents at the beginning of 2016. Based on the (Loss) / profit for the year
– all attributable to equity holders of the Company plus a separately disclosed
items is 272.3 m £.
The widespread acceptance of International Accounting Standards
(IAS)/International Financial Reporting Standards (IFRS) makes it timely to
examine their technical determinants as well as their implications for the
accounting profession and the process of accounting harmonization. In this respect,
we suggest that the principles-based approach to the standards and its inner
flexibility enables the application of IAS/IFRS to countries with diverse
accounting traditions and varying institutional conditions. Furthermore, the
principles-based approach involves major changes in the expertise held by
accountants and, hence, in their educational background, training programs, and
in the organizational and business models of accounting firms. Finally, we
submit that the standards set by the IAS/IFRS constitute a step forward in the
process of accounting harmonization, although there is still far to go in the
comparability of accounting measures across countries and regions.




C (2015). International Financial
Accounting and Reporting 5th ed, ICAI   

Accountant Magazine – a publication of ACCA, all articles online.

Persistent link:


Warren, C. M. (2016). The impact of
International Accounting Standards Board (IASB)/International Financial
Reporting Standard 16 (IFRS 16). Property Management, 34(3).

Florou, A., Kosi, U., & Pope, P. F. (2017).
Are international accounting standards more credit relevant than domestic
standards?. Accounting and Business Research, 47(1),

Oulasvirta, L. (2014). The reluctance of a
developed country to choose International Public Sector Accounting Standards of
the IFAC. A critical case study. Critical Perspectives on Accounting, 25(3),

Macve, R. (2014). What should be the nature and
role of a revised Conceptual Framework for International Accounting
Standards?. China Journal of Accounting Studies, 2(2),