Kinepolis Annual Report 2015

★

In-theatre sales (ITS) comprises all revenue from the

sale of beverages, snacks and merchandise in the

multiplexes. In-theatre sales are recognized as revenue

at the checkout;

★

Revenue from the advance sale of tickets or other

prepaid gift vouchers are recognized in current loans

and borrowings and recognized as revenue when the

ticket holder uses the ticket. The administrative fee is

immediately recognized as revenue;

★

Events (business to business) are recognized as

revenue as soon as the event is held. If the event takes

place over a longer period of time, the revenue is

recognized on a straight line basis over the duration

of the event;

★

Revenue generated from screen advertising is

recognized spread over the period in which the

advertising is shown;

★

The theatrical revenue from film distribution will be

recognized over the term of the film when the number

of visitors is known. Revenue from after theatrical

rights are recognized when they can be reasonably

measured.

Rental income

Rental income is recognized in the income statement on a

straight-line basis over the rental period. Lease incentives

granted are regarded as an integral part of rental income.

Government grants

Government grants are regarded as accrued income in the

statement of financial position and initially measured at

fair value when reasonable certainty exists that they will

be received and that the Group will comply with the

associated conditions. Grants that compensate incurred

costs are systematically recognized in the income state-

ment in the same period as the costs are incurred. Grants

that compensate costs incurred in respect of assets are

systematically recognized in the income statement over

the useful life of the assets.

Finance income

Finance income comprises interest received on investments,

dividends, foreign exchange gains, the unwinding of

receivables with regard to government grants and the

profits on hedging instruments that are recognized in the

income statement.

Interest income is recognized in the income statement

based on the effective interest method. Dividend income is

included in the income statement on the date that the

dividend is declared.

Foreign exchange gains and losses are compensated

per currency.

EXPENSES

Payments relating to operating lease agreements

Payments relating to operating lease agreements are

taken into the income statement on a straight-line basis

over the lease period.

Payments relating to finance lease agreements

The minimum lease payments are recorded partly as

finance expenses and partly as repayment of the out-

standing liability. Finance expenses are allocated to each

period of the total lease period in such a way as to give a

constant periodical interest rate over the remaining

balance of the liability.

Finance expenses

The finance expenses comprise interest to be paid on

loans, foreign exchange losses, the unwinding of discounts

on non current provisions and losses on hedging instru-

ments that are recognized in the income statement.

Interest charges are recognized based on the effective

interest method.

Finance expenses directly attributable to the acquisition or

construction of a qualifying asset are capitalized as part of

the cost of that asset.

Foreign exchange gains and losses are compensated

per currency.

INCOME TAX EXPENSE

Income tax expenses consist of current and deferred tax.

Income taxes are recorded in the income statement except

when they relate to a business combination or elements

recorded directly in equity. In this case the income taxes

are recognized directly in equity.

05 / FINANCIAL REPORT

KINEPOLIS GROUP

ANNUAL REPORT 2015