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Enterprise Ireland
Annual Report and Accounts
2007

Financial Statements - Accounting Policies (continued)

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For the Year Ended 31 December 2007

(e) Investments

Quoted Investments

Investments listed on a recognised stock exchange are stated at the lower of cost or net realisable value. Where the reasons for previous provisions in respect of diminution in value have ceased to apply, those provisions are reversed. The market valuation of the quoted portfolio is disclosed in Note 16 (c).

Other Investments

Other investments are stated at the lower of cost or net realisable value, based on management’s assessment and a review process using the latest available audited or management accounts of the investee companies or other relevant business information. Where the reasons for previous provisions in respect of diminution in value have ceased to apply, those provisions are reversed. Where management’s assessment of the value of investments is nil, due to insolvency or otherwise, these investments have been written off.

Investment in Subsidiary

Maison D’Irlande SARL is a wholly owned subsidiary of Enterprise Ireland established to manage the lease of the Ireland House (Maison D’Irlande) property in Paris. The net assets and the results of the subsidiary have been consolidated with those of Enterprise Ireland. However, a separate company Balance Sheet and related Notes have not been prepared as any difference between them and the group Balance sheet is negligible.

Seed and Venture Capital Funds

Advances to these funds are reported at the lower of cost or net realisable value based on Fund Managers’ Valuations using the latest audited or management accounts available. The guidelines followed by the Fund Managers in arriving at the valuations are in accordance with the valuation principles of the European and the Irish Venture Capital Associations. Where the reasons for previous provisions in respect of diminution in value have ceased to apply, those provisions are reversed.

Gains and Losses

Realised gains and losses and provision for change in value of investments are recognised in the Income and Expenditure Account.

Consolidation

The financial statements do not reflect a consolidation of the results of investee companies. Enterprise Ireland is of the opinion that such a consolidation would be misleading, having regard to the diverse nature of businesses of the companies involved and to its general duty to prepare financial statements which give a true and fair view of its industrial promotion activities.

 

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