Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are detailed below.
Compensation of key management personnel
Key management are the directors and members of the executive committee.
The remuneration of directors and other members of key management during the year was as follows:
2012 $m 2011 $m Short-term benefits 7.6 7.6 Post-employment benefits 0.8 0.7 Share-based payments 0.8 2.1 9.2 10.4 Post-employment benefits include contributions of $0.7 million (2011: $0.6 million) in relation to defined contribution schemes.
The remuneration of directors and key executives is determined by the Remuneration Committee having regard to the performance of individuals and market trends. The directors’ remuneration is disclosed in the Directors’ Remuneration Report on pages 63 to 74.
The amount disclosed in the table above does not include the portion of the annual bonus subject to compulsory deferral, which will be expensed over the vesting period in accordance with IFRS 2 Share-based Payment. The amount of the 2012 annual bonus subject to compulsory deferral is $1.0 million (2011: $1.7 million).
Other related party transactions
During the year, Group companies entered into the following transactions with related parties who are not members of the Group:
Sales of Goods Purchases of Goods Amounts owed by related parties Amounts owed to related parties
2012
$m 2011 $m 2012 $m 2011 $m 2012 $m 2011 $m 2012 $m 2011 $m
Associates 18.1 15.9 449.9 424.5 5.1 3.1 27.7 8.9
Purchases of goods principally relates to the purchase of aviation fuel. Purchases were made at market price discounted to reflect the quantity of goods purchased.
The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received.
At the balance sheet date, Group companies had loan receivables from an associated undertaking of $2.9 million (2011: $2.5 million). The loans are unsecured and will be settled in cash, and were made on terms which reflect the relationships between the parties.
In addition, the Group operates various pension and other post-retirement benefit schemes for its employees. Details are set out in note 19.
121
Company Financial Statements
Independent Auditor’s Report
Independent Auditor’s Report
to the members of BBA Aviation plc
We have audited the parent company financial statements of BBA Aviation plc for the year ended 31 December 2012 which comprise the Parent Company Balance Sheet, the accounting policies and the related notes 1 to 12. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditor
As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for the preparation of the parent company financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the parent company financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the parent company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements.
Opinion on financial statements
In our opinion the parent company financial statements:
—give a true and fair view of the state of the Company’s affairs as at 31 December 2012;
—have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
—have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006 In our opinion:
—the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006; and
—the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the parent company financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
—adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
—the parent company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the accounting records and returns; or
—certain disclosures of directors’ remuneration specified by law are not made; or
—we have not received all the information and explanations we require for our audit.
Other matter
We have reported separately on the Group financial statements of BBA Aviation plc for the year ended 31 December 2012.
Nigel Mercer (Senior statutory auditor) for and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditor London, United Kingdom