1

AnnualReport &Accounts
2015

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Contents
Chairman and Ceo Overview

3

Statistics

9

Corporate Governance

14

Financial Statements

22

Global Office Network47

3

Chairman &CEO Overview

Statement from the Chairman and CEO of IDA Ireland
New Strategy

In 2015, IDA Ireland published a new strategy - Winning:
Foreign Direct Investment 2015 – 2019. That Strategy setsout an extremely ambitious set of targets including:– 80,000 New Jobs
– 900 Investments– A 30 – 40% increase in investments
into regional locations; and– €3bn in R&D expenditure
The ultimate goal of the new strategy is for the people of
Ireland to benefit from foreign direct investment and for IDA
Ireland to become the most successful investment promotion
and development agency in the world.
2015 was the first year of implementation of that strategy
and IDA Ireland is happy to report that it has made an
excellent start on all aspects of the strategy.

Frank Ryan
Chairman4

Statement from the Chairman and CEO of IDA Ireland (continued)
Key Factors
As a small open economy Ireland continues to punch
above its weight and attract significant levels of inward
investment.
A delicate blend of factors, built up over several decades,
has made this possible.
Ireland’s track record for return on investment, theavailability of talent and a competitive, transparent andconsistent taxation regime are cited by our clients as threeof the top reasons they invest in Ireland.

PerformanceThis was the year that the organisation was able toannounce the highest level of employment at clientcompanies in its 67 year history, with total employment
at overseas companies standing at 187,056 people.
These are the direct jobs that come from the FDI sector,
but including indirect roles, we estimate that one in five
private sector jobs now originate from IDA client firms.

These are supplemented by other important pillars,
including the ease of doing business, the education
system, access to European markets, connected research
and access to cutting-edge Irish and international
companies based here.

The ability of Ireland to grow its FDI portfolio was clearly inevidence in 2015 - IDA client companies created just under
19,000 (18,983) jobs on the ground during the year acrossa range of sectors, with every region of Ireland posting net
gains in jobs. Net jobs were 11,833 compared to 7,131
in the same time period last year – representing a yearon-year rise of 66%. Losses as a percentage of the overall
employment portfolio were at their lowest level ever.

These and other factors continue to resonate with global
companies when they are considering where to locate
operations outside their domestic market. Proof thatthese factors continue to be relevant were visible in theperformance of IDA as an organisation in 2015.

It is important to remember that each individual job
counted in these statistics means there is anotherindividual or family in a location with a pay packet at theend of a week or month. In addition there is the impact
this expenditure has in local communities.
This performance, while hugely welcome, did not comeeasily and every single job created in Ireland from Foreign
Direct Investment (FDI) is hard won against significant
international competition. This is particularly the casein areas outside the main cities where IDA is challenged
by global economic trends such as the natural default
preference of many companies for larger urban centres.

Martin Shanahan
Chief Executive Officer

5Statement from the Chairman and CEO of IDA Ireland (continued)
Clients
2015 was a year when IDA client companies continued toplace their faith in Ireland as a business friendly location,
despite challenges in the global economy.
The number of investments won during the year rose to
213 from 197 in the previous year. The number of newname investments went to 94 from 88 in the previous
year. The strong net job creation performance was theresult of a very strong pipeline of new investments whichmaterialised in 2015 and lower job losses within theemployment portfolio.
Among the client companies making significant investments
during 2015 were Apple, Sage, Uber, Pramerica, Northern
Trust, Air Bnb, LinkedIn, Slack, GE Healthcare, Medtronic,
SAS, Pfizer, Workday and Amneal.
All of IDA Ireland’s key sectors performed well in 2015
including Technology, Life Sciences, Financial Services
and Engineering. IDA continued to see an increase in
the number of ‘emerging companies’, making their firstinternational investments in Ireland. 2015 was also an
excellent year for capital intensive projects, particularly in
bio-pharmaceuticals and datacentres. Gains came fromexpansions, others from first time investments. While
North America continued to dominate as the source ofinvestment, IDA Ireland experienced very good traction inboth Europe and growth markets and this is a key elementof the new IDA Ireland strategy.

Regions
Particularly noticeable in the 2015 project wins, were
investments going into regional locations, with all regionsof Ireland showing net employment gains in the year. The
percentage of new jobs going to regions in 2015 was 53%.
This had increased from 49% in 2014. 59% of IDA’s clientcompany employment is now outside of Dublin.
Outstanding regional projects in 2015, included Zimmer
expanding its manufacturing hub in Oranmore, Galway,
ABEC Inc in Fermoy, Co Cork building an engineering baseand Amneal moving into Cashel, Co Tipperary.
During 2015 IDA continued to strengthen its regionalpresence including the appointment of additional regional
managers who are active on the ground working closelywith local stakeholders to build on these types of gains.
In addition, IDA has seen increased visits to regional
locations by investors, signalling a strong interest in theselocations for the future.
However IDA cannot deliver job gains in regional locations
alone and only by working together, can locations
outside the main cities see these efforts bear fruit. This
collaborative spirit was in evidence during 2015 when
six regional job action plans were published by the
Department of Jobs, Enterprise & Innovation.
IDA Ireland has committed to a property investment
programme to support our ‘Winning’ strategy. Work wascompleted in 2015 on the first two of the buildings inthis programme, in Waterford and Athlone, and planning6

permissions were secured for similar buildings in Sligo
and Castlebar. Another five buildings were either underconstruction, in the planning system, or under design at
the time of writing and we are confident all of them will
help to facilitate job creation in their respective regions

Team Ireland
IDA relies on a broad network of stakeholders in the wider
government system and across the public sector.
In that context, we would like to acknowledge in particular
An Taoiseach, Enda Kenny TD; the former Minister for Jobs,
Enterprise & Innovation, Richard Bruton TD, now Minister
for Education and Skills; and the Minister for Finance,
Michael Noonan TD, amongst others who supported thework of IDA Ireland, and the many elected representatives
whom gave of their time generously in promoting Ireland.
We very much look forward to working with the new
Minister for Jobs, Enterprise and Innovation, Mary Mitchell
O’Connor TD and her cabinet colleagues.
The agency reports to the Department of Jobs,
Enterprise and Innovation and also works closely with
the Department of Foreign Affairs and Trade and its
embassy network, and other Government agencies
such as Enterprise Ireland, Science Foundation Ireland,
Higher Education Authority, Solas, NAMA, Eirgrid,
NTMA and Coillte.

Statement from the Chairman and CEO of IDA Ireland (continued)
IDA notes the valuable contribution of Ireland’s
universities and the Institutes of Technology to Ireland's
investment offering.
We also wish to acknowledge the many multinationaland Irish companies who gave up their time togenerously meet with prospective investors visiting
Ireland during 2015.
Most crucially of all, we would like to pay tribute to thestaff of IDA Ireland itself, whose work and dedication arewhat drives these results. These staff are based at home
and abroad, but whatever their location, their diligence,
drive and energy is recognised here.

Outlook and Challenges
Ireland has come through a very difficult number ofyears and we are at a point where international investor
confidence in Ireland is strong and the fundamentals of
the enterprise economy have improved. However, we
can never say that the job is done and it is imperativethat we continue to focus as much effort on theenterprise economy and job creation going forward as
we have over the past 5-years. There is a need to invest
in the infrastructure of the economy and in enterprisedevelopment.
While the 2015 results provide a strong base for IDA tobuild on as it moves through the phases of its Winning
strategy, the challenges to growing the FDI base further in
Ireland are not insignificant, particularly over the short tomedium term.

Ireland’s FDI prospects in 2016 and beyond will be
influenced by relatively low growth prospects in Europe,
the potential impact of slower growth in China andthe wider global economy, and geo-political issues
across the globe.
For example, a key factor will be the changing
international landscape for corporate tax and the final
precise shape of this landscape is not clear at the timeof writing.
There is every reason to believe that Ireland can emerge
stronger from the various tax reform agendas currently
being explored, including the OECD BEPS process. The
key pillar remains Ireland's 12.5% tax rate and the link
between economic substance and the kind of investment
Ireland wins.
In the year under review, Ireland introduced a Knowledge
Development Box regime for companies undertaking
cutting edge research and we believe this is a significant
underpinning of Ireland's existing tax offering.

7

CompetitivenessAs a small open economy, Ireland’s ability to achievesustainable growth depends on its ability to maintaincompetitiveness. Recent influential surveys, such as the
IMD Competitiveness rankings, show that Ireland remains
a competitive location, with Ireland now at 7th place of 61
countries in the survey, having improved from 16th placein 2015.
It should also be recognised that great strides were madein this area during the financial crisis by Ireland against
its competitor economies and we need to maintain andprotect the gains made then in the period ahead.
As pointed out by the National Competitiveness Council,
to protect the competitiveness gains made to date
and to "further embed and sustain Ireland's recovery'',
Ireland must continue to enhance all aspects of its
competitiveness.
In relation to labour costs, the Council has noted that
although demands for wage increases are understandable
after a period of economic stagnation and wage cuts,
Ireland's relative competitive position would be negatively
affected if wage growth outpaced that in competitor
countries. Therefore, to ensure that wages are sustainable,
wage growth should not outpace productivity growthbut, at the same time, there must be a relentless focus
on protecting real living standards by avoiding, as best as
possible, significant increases in the costs of living.

Statement from the Chairman and CEO of IDA Ireland (continued)
The work undertaken by the National CompetitivenessCouncil also points to the need to ensure continued fiscal
sustainability, the need to invest further in physical andknowledge infrastructure, to continue to improve talentavailability, innovation and productivity and to invest in
supporting a favourable enterprise environment.
Ireland has benefitted from benign international trends:
exchange rates, commodity/oil prices, interest rates,
which have flattered us, we must ensure that we address
those factors that are within our control as we know thatthe international environment will not always be benign.
As outlined above, Ireland can look forward to a strong
performance in future years from the inward investment
sector and the benefits from such investments - tangible
and intangible - should continue to be seen.
However complacency should be guarded against, and the
pro-enterprise policies that have got Ireland's FDI sector
to where it is today, must remain in place if these benefits
are to be consolidated and built upon for the future.

Martin Shanahan
CEOFrank Ryan
Chairman8

9

Statistics

10

Statistics
IDA Ireland Indicators

Origin of IDA Ireland Supported Companies 2015

Indicator		

2015 Value

Total of Investments Approved		

213

No of Greenfield Projects		

No of Companies

Total Employment

United States

707

137,739

94

Germany

96

12,423

No of Expansion Projects		

72

United Kingdom

105

6,827

No of Research, Development & Innovation Projects		

47

France56

6,230

Investment in Research, Development & Innovation Projects		

€1.23bn

Rest of Europe

194

16,368% Jobs Approved with Salaries in excess of €35,000		

74%

Rest of World

96

7,469

% projects outside Dublin -		

41%

Total

1,254

187,056

Average Salary in Investments		

€49,118

Annual Corporate Tax Payments of IDA Client Companies *		

€3bn

Total R&D in-house Expenditure *		€1.5bnNote *
Corporation Tax and R&D in-house expenditure data refers to 2014.

OriginSource: DJEI Annual Employment Survey 2015.

11

Statistics (continued)
Employment in IDA Supported Companies
		
Job Gains		

Total Employment by Regionin IDA Ireland Supported Companies
2015
18,983

Source: DJEI Annual Employment Survey 2015

Employment in IDA Supported Companies
2014

2015

Total Employment

175,223

187,056

Full Time

157,377

167,990

Other

17,846

19,066

Net change in total employment

8,182

11,833% Net change in total employment

4.9%

6.7%

Source: DJEI Annual Employment Survey 2015

Area/Region
2011
2012
2013
2014
2015
% Change						2014/2015
Dublin & Mid-East 72,057

76,07980,85385,54691,3396.8%South-West

26,54027,93829,09430,34533,831

11.5%

Mid-West

13,583

13,90014,107

14,714

15,766

7.1%

West16,516

17,302

18,082

18,614

19,214

3.2%

South-East

12,001

12,072

12,003

12,462

12,766

2.4%

North West

5,313

5,194

4,919

5,079

5,370

5.7%

North East

3,035

3,357

4,068

4,440

4,556

2.6%

Midlands

3,732

3,937

3,915

4,023

4,214

4.7%

IDA Ireland

152,777

159,779

167,041

175,223

187,056

6.7%

Source: DJEI Annual Employment Survey 2015

12

Statistics (continued)
Total Employment by Sector
in IDA Ireland Supported Companies

Economic Impact of IDA Ireland Supported Companies
All Sector

Sector
2011
2012
2013
2014
2015
% Change						2014/2015
Pharmaceuticals

22,292ComputerElectronic &Optical Equipment 16,014
Medical &Dental Instruments& Supplies
23,827
Metals &Engineering
Miscellaneous
Industry

11,01522,381

16,31024,727
11,162

22,81917,292

24,878
11,18523,052

18,12025,863
10,987

24,492

20,22726,087
10,997

6.2%

11.6%

8.6%
1%

6,683

6,879

7,097

6,864

7,158

4.3%

International& Financial Services(incl software)
72,94678,32083,77090,33798,095

8.6%

Total

159,779

167,041

175,223

187,0566.8%

152,777

2011
€m

2012
€m

2013
€m

2014
€m

% Change 		
13/14

Sales

119,982

127,486

128,461

135,919

5.8%

Exports

116,022

123,300

123,311130,112

5.5%

Direct Expenditurein Irish Economy

15,05015,582

16,74418,0838.0%

Of which Payroll

7,796

8,046

8,601

9,080

5.6%

Purchases of
Irish Material

2,869

3,030

3,272

3,739

14.3%

Purchases of
Irish Services

4,385

4,506

4,870

5,264

8.1%

Direct Expenditure
as a % of Sales

12.5%

12.2%

13.0%

13.3%

Source: Based on the Annual Business Survey of Economic Impact and co-ordinated by DJEI.

Source: DJEI Annual Employment Survey 2015

Note 1: The survey is based on manufacturing and internationally traded services companies
with 10 or more employees (excluding regulated financial services companies).
Note 2: Results are based on companies responding to the survey in 2014 (grossed-up toreflect non-respondents). Results can vary from previous years due to revisions made bycompanies and differences in the base of respondents from one survey period to the next.

13

Statistics (continued)
Cost Per Job Sustained

Cost Per Job Sustained

2002/2008

2003/20092004/20102005/20112006/12

2007/13

2008/142009/15€12,029€13,776€13,960€13,876€13,457€12,716€11,852€10,553

Strategic Policy Unit, Department of Jobs Enterprise & Innovation

14

Corporate
Governance15

Board 2015
The Board operates to best practice corporate governanceprinciples and in line with the guidelines set out in the‘Code of Practice for the Governance of State Bodies’
as issued by the Department of Finance, both in its own
activities and in its use of committees.

Frank Ryan
Chairman, IDA Ireland

Attendance by Board Members at Board Meetings in2015 (12 Meetings in 2015)*

Martin Shanahan
Chief Executive Officer, IDA Ireland

Board Members Attendance	Frank Ryan - Chairman

12 meetings

It is responsible for setting the broad policies of theorganisation and for overseeing its operation. It
performs these functions directly and through theoperation of focused Board Committees. Responsibility
for the implementation of policy rests with executive
management.

Lionel Alexander
Former Vice President and Managing Director
Hewlett-Packard (Manufacturing) Ltd.

Martin Shanahan

12 meetings

Alan Gray

9 meetings

John Murphy

7 meetings

Mary Campbell
Managing Director, Deutsche Bank AG
Board Member, DB Services Centre Ltd

Lionel Alexander

11 meetings

Caroline Dowling

1 meeting

Geraldine McGinty

12 meetings

Paul Duffy
Vice President, Pfizer Global Supply (External Supply)
Board Member, Cork Chamber of Commerce
Director, Various Pfizer Companies

Peter Cassells

10 meetings

Dermot Curran

2 meetings

Denis Collins

4 meetings

Mary Campbell

11 meetings

Barry O’Sullivan

2 meetings

Paul Duffy

4 meetings

The Board has statutory authority to approve grant aid up
to the levels set out in the Industrial Development Acts
and to recommend grant aid above these specified levels
to Government. In accordance with the Ethics in Public
Office Acts, 1995 and 2001, IDA Ireland Board Members
furnish a Statement of Interests to the Secretary and to
the Standards in Public Office Commission.
In accordance with the ‘Code of Practice for theGovernance of State Bodies’, IDA Ireland fully complies
with Government policy on the pay of Chief Executives
and State Body employees and with Government
guidelines on the payment of fees to Board Members.

Geraldine McGinty
Assistant Professor of Radiology, Weill
Cornell Medical College, New York
Assistant Attending Radiologist, New York
Presbyterian Hospital
Alan Gray
Chairman, London Economics
Managing Partner, Indecon International
Economic Consultants
Director, Tedcastle Oil Products
Director, Hillington Investments* 10 scheduled Board meetings & 2 special meetings

16

Board 2015 (continued)
Dermot CurranAssistant Secretary, Innovation and
Investment Division, Department of Jobs,
Enterprise and Innovation– Mary Campbell retired as a Director
on 31 December 2015

Peter Cassells
Executive Director, Edward M Kennedy
Institute, NUI Maynooth, Co. Kildare– Dermot Curran was replaced
by John Murphy on 6 May 2015

John Murphy
Secretary General, Department of Jobs,
Enterprise and Innovation
Denis J Collins
CEO, Smarter Dynamics
Chairman, LearnLode Ltd
Caroline DowlingBusiness Group President, Integrated
Network Business Unit and Global Services
Business Unit, Flextronics
Barry O’Sullivan
General Manager, Johnson and Johnson
Vision Care (Vistakon)
Board member, American Chamber ofCommerce
Deirdre Lyons
Secretary, IDA Ireland– Paul Duffy retired as a Director
on 31 December 2015

– Caroline Dowling was appointed
as a Director on 4 September 2015
– Barry O’Sullivan was appointed
as a Director on 4 September 2015
– Denis Collins was appointed 		as a Director on 4 September 2015

Committees of the Board & the Management Investment Committee
During 2015 the Board reviewed its committee structureand formed a new structure which is outlined below alongwith the composition of the 2015 structure.
Audit, Finance and Risk Committee
Assists and supports the Board in discharging its
legal and accounting responsibilities; communicateswith external auditors and evaluates and controls theinternal audit function; reviews financial planning andthe system of internal financial control. It also oversees
the implementation of the organisation’s risk policy
including the development of its risk register and monitors
budgeting and banking arrangements.
Members 2015:
Paul Duffy (Chair)Peter Cassells
Dermot CurranJohn Murphy

Members 2016:
Peter Cassells (Chair)John Murphy
Denis Collins
Geraldine McGinty

Property Committee
Reviews policy with regard to the financing, provision,
maintenance and disposal of property, approves
procedures with regard to tendering and awarding ofcontracts and approves expenditure/sales of up to €12
million.
Members 2015:
Lionel Alexander (Chair)
Martin Shanahan
Mary Campbell
Alan GrayPeter Cassells

Members 2016:
Lionel Alexander (Chair)
Martin Shanahan
Alan GrayPeter Cassells

Regional Development Committee
New in 2016, the Regional Development Committee
provides guidance on the implementation of the regional
development aspects of IDA’s Strategy. Reviews andmonitors IDA’s annual and cumulative regional targets
and its involvement in national and regional strategy
development.

Management Development
and Remuneration Committee
Reviews the performance of the senior management
team and planning for management development andsuccession. The Committee also reviews remunerationof senior management in the context of Government
guidelines.

Members 2016:
Alan Gray (Chair)John Murphy

Members 2015:
Frank Ryan (Chair)
Martin Shanahan
Lionel AlexanderPeter Cassells

Barry O’Sullivan
Mary Buckley

Nibrt Committee / Sectoral Development Committee
Reviews progress on the National Institute for
Bioprocessing Research and Training (NIBRT) investment
project to ensure that it is delivering in accordance withthe objectives and conditions approved by the IDA Board.
Replaced in 2016 by the Sectoral Development
Committee which reviews and recommends sectoral
initiatives/investments to the Board. Monitors progress on
sectoral initiatives and ensures the infrastructure exists to
support the initiatives.
NIBRTMembers 2015:
John Murphy (Chair)
Paul Duffy
Mary Campbell

Sectoral Development
Committee Members 2016:
Geraldine McGinty(Temporary Chair)
Barry O’Sullivan
Lionel Alexander

17

Members 2016:
Frank Ryan (Chair)
Martin Shanahan
Lionel Alexander
Caroline DowlingManagement Investment Committee
Reviews all proposals for grant assistance andrecommends them to the Board. Under powers delegatedby the Board the Committee approves grants up to a
maximum of €500,000.
Members 2016:
Martin Shanahan (Chair)
Mary Buckley

Eileen Sharpe
Regina Gannon

Investment Committee
The Committee’s remit was covered by the Board in 2015
and its role in the future will be undertaken by the Board.
Members 2015:
Dermot Curran (Chair)
Martin Shanahan
Paul Duffy

Alan GrayPeter Cassells

18

Corporate Governance
IDA Ireland is an autonomous Statutory Agency set up
under the Industrial Development Acts 1986 - 2014.
The Agency operates in accordance with the provisionsof the Acts and under the aegis of the Minister for Jobs,
Enterprise and Innovation, who is empowered to provide
funds to discharge its obligations and issue general policy
directives/seek information on the Agency’s activities.
While the primary source of corporate governance for IDA
Ireland are the Industrial Development Acts, the Agency
is also required to comply with a range of other statutory(National and EU) and administrative requirements. IDA
Ireland affirms that it met its obligations in regard to allof these requirements. In particular, it has the following
procedures in place to ensure compliance with specificrequirements:
1 General Administrative and Policy Requirements
At national level, IDA Ireland works closely with officialsof the Department of Jobs, Enterprise and Innovationand officials of other Government Departments andState Agencies in advancing its objectives and ensuring
compliance with statutory, administrative and Ministerial/
Government requirements. At local level, the Agency
works closely with Local Authorities, Educational
Establishments, other State Agencies and a wide rangeof Local Organisations/Public Representatives to develop
the local environment necessary for attracting newinvestment. IDA Ireland is continuing to implement a
policy directive issued by the Minister for Jobs, Enterpriseand Innovation on 18 December 2006 and which reads
as follows:"The European Commission adopted Regional Aid
Guidelines for the periods 2007-2013* and 2014-2020
together with respective Block Exemption Regulations
for each of the two periods, which enables regional
aid schemes to be operated without prior approval of
the European Commission. In order to comply with therequirements arising from the Regional Aid Guidelines
and the Block Exemption Regulations new Administrative
Rules relating to Industrial Development regional aid
schemes for each respective period were also drawn up.
IDA also provides research and development grants inaccordance with the Community Framework for State aid
for Research and Development and Innovation 2006".

Sections 2.12, 2.14 & 2.15: The Board of IDA has adopted
the Horizon 2020 strategy. In addition, the Board has
established processes to ensure sound corporate planning,etc., as required by this Section (Board 2015, page 15 andStatement of Internal Financial Control page 24).

2 Code of Practice for the Governance of State Bodies
IDA Ireland fully complies with this Code of Practice andin particular affirms its compliance with the following
Sections:

The schemes and programmes administered by the
IDA are in accordance with the legislation governing
the operation of the Agency and appropriate risk
management systems are in place.

Sections 7 & 13: Complied with by the Chairman of theBoard in a separate letter furnished to the Minister for
Jobs, Enterprise and Innovation.
Sections 13.1 & 13.1 (iii): An effective system of internalfinancial control is maintained and operated by the
Agency (Statement of Internal Financial Control, page 24).
Section 13.1 (v): Government policy on the pay of Chief
Executives and State Body employees is being compliedwith (Board 2015, page 15 and Notes to the Financial
Statements No 8, pages 34 to 35).

Section 13.1 (x): The IDA travel procedures reflect theGovernment's travel policy requirements and are being
complied with.
Section 19.2: The Chairman of the Board, in the separate
letter furnished to the Minister for Jobs, Enterprise andInnovation, confirms that the IDA has complied with its
obligations under tax law.

3 Revenue Commissioners’ Statement of Practice
Sp-It/1/04 on Tax Treatment of Remuneration ofMembers of State and State Sponsored Committees
and Boards
IDA Ireland fully complies with this Statement of Practice.

* Extended to 30 June 2014

19

Corporate Governance (continued)
4 Guidelines For The Appraisal And Management Of
Capital Expenditure Proposals
IDA Ireland has well-established robust procedures inplace for the Appraisal and Management of Capital
Expenditure projects arising under the Capital Grants or
Property programmes. These procedures comply with theprinciples set out in the Guidelines for the Appraisal andManagement of Capital Expenditure Proposals.
5 Employment Equality Acts, 1998 And 2004
Equality is an established priority for IDA. The organisation
has a progressive equality and diversity agenda andnew initiatives are developed on an ongoing basis. IDA
Ireland values diversity and strives to be an equality
employer where individual contribution is encouraged
and differences are valued. To this end, it is committed
to ensuring that no staff member of IDA, or applicant for
employment with IDA, receives less favourable treatment
than any other on grounds of gender, marital status,
family status, sexual orientation, religion, age, disability,
race, membership of the traveller community or on any
other grounds not relevant to good employment practice.
This applies to recruitment, working conditions anddevelopment opportunities.

measures to protect the safety, health and welfare of
all employees and visitors within its offices to meet theprovisions of this Act. This extends to the Public Health(Tobacco) Acts 2002 and 2004.
7 Worker Participation (State Enterprise) Act, 1988
Consultative structures are operating effectively in IDA
Ireland and are a recognised feature of the organisation's
communications and consultative structure. The Joint
Consultative Committee is welcomed as a positive processby both management and staff. Additionally, a further
partnership arrangement has been established with theTrade Unions to progress actions under the Haddington
Road National Agreement.
8 Ethics In Public Office Act, 1995 And Standards In
Public Office Act, 2001
In accordance with the above Acts, all IDA Ireland Board
Members and staff holding designated positions havecompleted statements of interest in compliance with theprovisions of the Acts.

IDA is committed to maintaining and developing abalanced work/life environment for all staff.

9 Freedom Of Information Acts 2014
IDA Ireland complies with this Act. Requests for
information under these Acts should be addressed to theFreedom of Information Executive, IDA Ireland, Wilton Park
House, Wilton Place, Dublin 2.

6 The Health, Safety And Welfare At Work Act, 2005
This Act, which replaces the provisions of the Safety,
Health and Welfare Act, 1988, consolidates and updates
the existing law. IDA Ireland continues to take appropriate

10 Energy Efficiency
In compliance with the Government memorandumof June 2001, IDA Ireland, in the design, planning andconstruction of office and manufacturing buildings on

its Business and Technology Parks, applies 'best practice'principles in all cases. The IDA's offices in the regions also
conform to 'best practice' principles.
11 (I) Prompt Payment Of Accounts
The Prompt Payment of Accounts Act 1997 (the Act),
which came into operation on 2 January 1998, wasamended by the European Communities (Late Payment
in Commercial Transactions) Regulations 2002.
Management is satisfied that IDA complied with theprovisions of the Act in all material respects.
11 (II) Prompt Payment To Supplier
IDA Ireland is committed to meeting its obligations underthe 15 day Prompt Payment Rule, which came into effecton 1 July 2011.
The provision ensures that payments to suppliers in
respect of all valid invoices received will be made within
15 calendar days.
IDA Ireland reports quarterly in the “Corporate
Governance” section of the website on theimplementation of the 15 day Prompt Payments rule.

Comptroller & Auditor General Report

20

for Presentation to the House of the Oireachtas
Industrial Development Agency Ireland
I have audited the financial statements of the Industrial
Development Agency Ireland for the year ended 31
December 2015 under the Industrial Development Act
1993. The financial statements comprise the statementof income and expenditure and retained revenue reserves,the statement of comprehensive income, the statementof financial position, the statement of cash flows andthe related notes. The financial statements have been
prepared in the form prescribed under paragraph 7 of thefirst schedule of the Act, and in accordance with generally
accepted practice.
Responsibilities of the Members of the Board
The Board is responsible for the preparation of thefinancial statements, for ensuring that they give atrue and fair view and for ensuring the regularity oftransactions.
Responsibilities of the Comptroller and Auditor
GeneralMy responsibility is to audit the financial statements andto report on them in accordance with applicable law.
My audit is conducted by reference to the special
considerations which attach to State bodies in relation totheir management and operation.
My audit is carried out in accordance with theInternational Standards on Auditing (UK and Ireland) andin compliance with the Auditing Practices Board’s EthicalStandards for Auditors.

Scope of audit of the financial statements
An audit involves obtaining evidence about the amounts
and disclosures in the financial statements, sufficient togive reasonable assurance that the financial statements
are free from material misstatement, whether caused byfraud or error. This includes an assessment of– whether the accounting policies are appropriate to the
Agency’s circumstances, and have been consistently
applied and adequately disclosed– the reasonableness of significant accounting estimates
made in the preparation of the financial statements,
and– the overall presentation of the financial statements.
I also seek to obtain evidence about the regularity offinancial transactions in the course of audit.
In addition, I read Agency’s annual report to identify
material inconsistencies with the audited financial
statements and to identify any information that isapparently materially incorrect based on, or materiallyinconsistent with, the knowledge acquired by me in thecourse of performing the audit. If I become aware of any
apparent material misstatements or inconsistencies, I
consider the implications for my report.
Opinion on the financial statements
In my opinion, the financial statements– give a true and fair view of the assets, liabilities andfinancial position of the Agency as at 31 December
2015 and of its income and expenditure for 2015, and– have been properly prepared in accordance withgenerally accepted accounting practice.

In my opinion, the accounting records of the Agency were
sufficient to permit the financial statements to be readily
and properly audited. The financial statements are inagreement with the accounting records.
Matters on which I report by exception
I report by exception if I have not received all theinformation and explanations I required for my audit, or if
I find– any material instance where money has not been
applied for the purposes intended or where thetransactions did not conform to the authorities
governing them, or– the information given in the Agency’s annual report is
not consistent with the related financial statements orwith the knowledge acquired by me in the course of
performing the audit, or– the statement on internal financial control does notreflect the Agency’s compliance with the Code ofPractice for the Governance of State Bodies, or– there are other material matters relating to themanner in which public business has been conducted.
Lease exit charges
Note 8(g) discloses that the Agency incurred expenditure
totalling €10.4 million in relation to a leased premises,
comprising €1 million on rent and associated costs
related to office space that was not occupied during
2015 and €9.4 million under the terms of an agreement
to exit the lease. The note also discloses the backgroundto the matter including the Agency’s rationale for
exiting the lease.

Comptroller & Auditor General Reportfor Presentation to the House of the Oireachtas (continued)
Legal Costs
Note 23 discloses that legal costs of €1.375 million wereincurred by the Agency in relation to judicial review
proceedings on a decision of the Agency to acquire
certain land by way of compulsory purchase order.
The Supreme Court found against the Agency. The
note also discloses that the implications of the case arebeing considered by the Department of Jobs, Enterpriseand Innovation.

Seamus McCarthy
Comptroller and Auditor General
15 June 2016

21

22

Financial
Statements

Statement of Board Members’ Responsibilities					Board Members’ Report
For the year ended 31 December 2015
The Industrial Development Agency Ireland (IDA) wasestablished on 1 January 1994 under the provisions of theIndustrial Development Act, 1993.
Paragraph 7(2) of the First Schedule to the Industrial
Development Act, 1993 requires the Agency to keep,in such form as may be approved of by the Minister for
Jobs, Enterprise and Innovation with the consent of the
Minister for Public Expenditure and Reform, all proper andusual accounts of money received and expended by it. In
preparing those accounts, the IDA is required to:

The Board is responsible for keeping proper books ofaccount which disclose with reasonable accuracy at any
time the financial position of the Agency and whichenables it to ensure that the Financial Statements comply
with Paragraph 7(2) of the First Schedule to the Industrial
Development Act, 1993. The Board is also responsible forsafeguarding all the assets of the Agency and hence fortaking reasonable steps for the prevention and detectionof fraud and other irregularities.

On behalf of the Board Date: 9th June 2016

Frank Ryan
ChairmanMartin Shanahan
Chief Executive– select suitable accounting policies and apply themconsistently– make judgements and estimates that are reasonable
and prudent– prepare the Financial Statements on a going concern
basis unless it is inappropriate to presume that the
Agency will continue in operation– State whether applicable accounting standards havebeen followed, subject to any material departures
disclosed and explained in the financial statements

Peter Cassells
Chairman
Audit, Finance & Risk Committee

23

24

Statement on Internal Financial Control
On behalf of the Board of IDA I acknowledge our responsibility
for ensuring that an effective system of internal financial
control is maintained and operated by the Agency.
The system can only provide reasonable and not absoluteassurance that assets are safeguarded, transactions authorised
and properly recorded, and that material errors or irregularities
are either prevented or would be detected in a timely period.
The Board has taken steps to ensure an appropriate control
environment is in place by:– establishing formal procedures through various committee
functions to monitor the activities and safeguard theassets of the organisation;– clearly defining and documenting management
responsibilities and powers;– developing a strong culture of accountability across alllevels of the organisation.
The Board has also established processes to identify andevaluate business risks. This is achieved in a number of ways
including:– working closely with Government and various
agencies and institutions to ensure that there is a clear
understanding of IDA’s goals and support for the Agency’s
strategies to achieve those goals;– carrying out regular reviews of strategic plans both shortand long term and evaluating the risks to bringing thoseplans to fruition;– setting annual and longer term targets for each area ofour business followed by regular reporting on the results
achieved;– carrying out regular reviews of developments andstrategies in our business sectors;– establishing and enforcing extensive standard proceduresand provisions under which financial assistance may bemade available to projects, including provisions requiring
repayment if the project does not fulfil commitments
made by the promoter.
The system of internal financial control is based ona framework of regular management information,
administrative procedures including segregation of duties,
and a system of delegation and accountability. In particular it
includes:– a comprehensive budgeting system with an annual
budget which is reviewed and agreed by the Board;– regular reviews by the Board of periodic and annual
financial reports which indicate financial performanceagainst forecasts;– setting targets to measure financial and otherperformances;– clearly defined capital investment control guidelines;– formal project management disciplines.
IDA has an outsourced internal audit function, which reports
directly to the Audit, Finance & Risk Committee of the Board.
This committee meets on at least a quarterly basis to review
reports prepared by Internal Audit and other departments.
The Audit, Finance & Risk Committee in turn keeps the Board
informed of the matters that it has considered.
The internal audit function operates in accordance with
the Framework Code of Best Practice set out in the Codeof Practice for the Governance of State Bodies. A rolling

three-year Internal Audit work plan is determined by the
Audit, Finance & Risk Committee and revised annually whererequired. The current work plan takes account of areas ofpotential risk identified in a risk assessment exercise carriedout by management and reviewed by the Audit, Finance &Risk Committee and the Board.
The Internal Auditor provides the Committee with quarterly
reports on assignments carried out. These reports highlightdeficiencies or weaknesses, if any, in the system of internalfinancial control and the recommended corrective measures
to be taken where necessary.
The Board’s monitoring and review of the effectivenessof the system of internal financial control is informed by
the work of the Internal Auditor, the Audit, Finance & Risk
Committee, which oversees the work of the Internal Auditor
and the executive managers within IDA Ireland who have
responsibility for the development and maintenance of thefinancial control framework.
I confirm that, in respect of the year ended 31 December
2015, the Board conducted a review of the system of internalfinancial control.
Signed on behalf of the Board

Frank Ryan
Chairman
9th June 2016

25

Statement of Income & Expenditure& Retained Revenue Reserves

For Year Ended 31 December 2015

2015
2014
			Re-Stated
Notes
€’000
€’000
IncomeOireachtas Grants
2
National Training Fund
3
Grant Refunds
4
Rental Income 		Rental Income received from Enterprise Ireland Clients 		
Other Income
5
Profit on Disposal of Assets
6
Net Deferred Pension Funding
19 (f)

155,713
3,000
2,536
1,143
2,113
5,440
4,948

130,805
3,000
2,226
1,607
29
1,943
6,894
2,506

Amounts shown under Income and Expenditure are in
respect of continuing activities. The Statement of Income
and Expenditure and Retained Revenue Reserves includes
all gains and losses recognised in the year.
The Statement of Cashflows and notes
1 to 26 form part of these Financial Statements.
On behalf of the Board of IDA:
Date: 9th June 2016

		
174,893
149,010Frank Ryan
Chairman
Expenditure
Grants Payable
7
98,56388,001
Promotion, Administration and General Expenses
8 (a)44,78041,797
Lease Exit Charges
8 (g)
9,400
Martin Shanahan
Industrial Building Charges
9
3,168
2,882
Chief Executive
Reduction in Value of Fixed Assets
10
3,872
4,757
Pension Costs
19 (c)
6,036
3,089
		

165,819

140,526

Surplus for the Year before Appropriations		
9,074
8,484
Contribution to the Exchequer
11(5,195)
Transfer to Capital
12(766)(11,539)
Surplus / (Deficit) for the year after Appropriations 		

8,308(8,250)

Balance Brought Forward at 1 January 		

(11,760)(3,510)

Balance Carried Forward at 31st December 2015 		

(3,452)(11,760)

Peter Cassells
Chairman
Audit, Finance & Risk Committee

26Statement of Comprehensive Income

For Year Ended 31 December 2015

2015
2014
			Re-Stated
Notes
€’000
€’000

The Statement of Cashflows and notes 1 to 26
form part of these Financial Statements.
On Behalf of the Board of IDA:

Surplus before Appropriations 		
Experience (loss) / gain on retirement benefit obligations
19 (d)
Change in assumptions underlying the present valueof retirement benefit obligations
19 (d)

9,074
(666)

8,484
2,442

(3,532)(401)

Total actuarial (loss) / gain in the year 		(4,198)2,041

Adjustment to deferred retirement benefits funding 		

4,198(2,041)Other Comprehensive Income for the year 		

9,074

8,484

Date: 9th June 2016

Frank Ryan
ChairmanMartin Shanahan
Chief Executive

Peter Cassells
Chairman
Audit, Finance & Risk Committee

27Statement of Financial Position

As at 31 December 2015

2015
2014
			
Re-Stated
Notes
€’000
€’000

The Statement of Cashflows and notes 1 to 26 form part ofthese Financial Statements.
On behalf of the Board of IDA:

Tangible Fixed Assets
Industrial Property
Other Fixed Assets

Date: 9th June 201613
14

112,088676

111,381617

		112,764
111,998
Intangible Assets
Telecommunication Assets
15Frank Ryan
Total Tangible and Intangible Assets 		
112,764
111,998
Chairman
Current Assets
Receivables
16
14,06911,505
Cash and Cash Equivalents 		
9,249
2,988
Current Liabilities
Payables17

23,31814,493(6,654)(3,430)Martin Shanahan
Chief Executive

Net Current Assets 		
16,664
11,063
Long Term Receivables
Receivables: amounts falling due after more than one year
Long Term Payables
Payables: amount falling due after more than one year
Provisions
Provisions for Liabilities and Charges

16

210

272

17

(3,000)-18(17,326)(23,095)

19 (f)
19 (e)

106,133(106,133)

96,987(96,987)

Total Net Assets 		

109,312100,238

Representing:
Capital Account
12
Retained Revenue Reserves 		

112,764(3,452)111,998(11,760)

109,312100,238

Pensions
Deferred Pension Funding Asset
Pension LiabilityPeter Cassells
Chairman
Audit, Finance & Risk Committee

28Statement of Cashflows

For Year Ended 31 December 2015

2015
2014
			Re-Stated
Notes
€’000
€’000
Net Cash Flows From Operating Activities
Excess Income over Expenditure 		
Reduction in Value of Fixed Assets- Industrial Property
10- Other Fixed Assets & Telecommunication Assets
10
Expenditure Capitalised
8 (a)Profit on Disposal of Assets
6
Bank Interest
5
Contribution to the Exchequer
11(Increase) in Receivables amounts falling due within one year
16
Increase / (Decrease) in Payables amounts falling due within 1 year
17
(Decrease) in Provisions and Charges
18
Decrease / (Increase) in Receivables amounts falling due after morethan one year
16
Increase in Accounts Payable amounts falling due after more than one year
17

9,074

8,484

3,506
366
(70)
(5,440)(4)(2,564)
3,224(5,769)

4,397
360
(335)
(6,894)(85)(5,195)(833)(2,521)(6,824)

62
3,000

(108)
-

Net Cash Inflow / (Outflow) from Operating Activities 		

5,385(9,554)

Cash Flows from Investing Activities
Acquisitions
Disposals(8,529)9,401(33,066)
23,999Net Cash Flows from Investing Activities 		

872(9,067)

Cash Flows From Financing Activities
Bank Interest Received 		

485

Net Cash Flows from Financing Activities 		485

Net Increase / (Decrease) in Cash and Cash Equivalents 		
6,261
Cash and cash equivalents at 1 January 		
2,988
Cash and Cash Equivalents at 31 December 		

9,249(18,536)
21,5242,988

Notes to the Financial Statements
1 Accounting Policies
The basis of accounting and significant accounting
policies adopted by IDA are set out below. They have all
been applied consistently throughout the year and thepreceding year:(a) General Information
The Industrial Development Agency (IDA) Ireland wasestablished on 1 January 1994 under the provisionsof the Industrial Development Act, 1993. IDA Ireland's
head office is located at Wilton Park House, Dublin
2 IDA Ireland is a Public Benefit Entity (PBE). A Publicbenefit entity provides goods or services for thegeneral public, community or social benefit and where
any equity is provided, it is to support the entity’s
primary objectives rather than with a view to providing
a financial return to equity providers, shareholders or
members. IDA Ireland's primary objective as set out inPart II S8 of the Industrial Development (IDA Ireland)
Act 1993 is:- to promote the establishment and development, in
the State, of industrial undertakings from outside
the State- to make investments in and provide supports toindustrial undertakings which comply with therequirements of the enactments for the time being
in force.

- to administer such schemes, grants and otherfinancial facilities requiring the disbursement ofEuropean Union Funds and such other funds as mayfrom time to time be authorised by the Minister for
Public Expenditure and Reform, and to carry out
such other functions as may from time to time be
assigned to it by the Minister.

(b) Statement of Complianceand Basis of Preparation
The Financial Statements have been prepared inaccordance with the historical cost convention,
modified in compliance with Financial ReportingStandard 102 (FRS 102) issued by the Financial
Reporting Council in the form approved by the
Minister for Jobs, Enterprise and Innovation with theconsent of the Minister for Public Expenditure andReform. The prior year financial statements wererestated for material adjustments on adoption of
FRS 102 in the current year. Previously, the financial
statements were prepared in accordance with
Generally Accepted Accounting Practice in Ireland.
For more information see note 25 .
The presentation currency of the Financial
Statements of IDA Ireland is in Euro. The functional
currency of IDA Ireland is considered to be Euro as itis the primary economic environment in which theagency operates.

29

For Year Ended 31 December 2015(c) Revenue
Oireachtas Grants
Revenue is generally recognised on an accruals basis:the one exception being Oireachtas Grants which arerecognised on a cash receipts basis.
Refunds of Grants Paid
Grants paid become refundable in certain
circumstances, such as liquidation / dissolution of therecipient company, or if the conditions of the grant
are not met. Grant refunds are recognised when it isprobable that the money will be received by IDA andthe amount can be estimated reliably; therefore they
are accounted for on an accruals basis.
Interest Income
Interest income is recognised on an accruals basis
using the effective interest rate method.
Rental Income
Rents comprise amounts due under the terms of leaseagreements for periods of up to 35 years entered into
between the Agency and tenants, charges for the useof undeveloped lands and estate maintenance charges
billed to tenants and are accounted for on an accruals
basis.
Other Revenue
Other revenue is recognised on an accruals basis.

Notes to the Financial Statements (continued)(d) Tangible Fixed Assets
Tangible Fixed Assets comprise :(i) Land which is held for the purposes of industrial
development.
(ii) Site development works.
(iii) Industrial buildings leased to tenants including
buildings in the course of sale where title had notpassed at the year end.
(iv) Vacant property available for industrial promotion
or in the course of sale where title had not passed at
the year end.
(v) Other Fixed Assets including computer and officeequipment, fixtures and fittings and motor vehicle.
Tangible Fixed Assets are stated at cost lessaccumulated depreciation and provision for
impairment. Depreciation is provided on all tangible
assets, other than land at rates calculated to write
off the cost, less estimated residual value, of each
asset on a straight line basis over the estimateduseful lives as follows :(i) Buildings
3 % per annum(ii) Site Development
10 % per annum(iii) Office Equipment /Fixtures & Fittings
20 % per annum(iv) Computers
33 % per annum(v) Motor Vehicles
25 % per annum(vi) Land
0 % per annum

Residual value represents the estimated amount which
would currently be obtained from disposal of an asset,
after deducting estimated costs of disposal, if the asset
were already of an age and in the condition expected
at the end of its useful life.
If there is objective evidence of impairment of thevalue of an asset, an impairment loss is recognisedin the Statement of Income and Expenditure andRetained Revenue Reserves in the year.
Impairment of Property, Plant and Equipment
Provisions for impairments may be made following
reviews of fixed assets and telecommuniaction assets
carried out by officers of IDA or independent valuers,
as appropriate, if events or changes in circumstancesor economic conditions indicate that the carrying
amount of the assets may not be fully recoverable. Anysuch provisions will be recognised in the Statementof Income and Expenditure and Retained Revenue
Reserves in the year in which they are made. Where asubsequent review indicates that the circumstances
which gave rise to a provision for impairment no longer
exists or have changed materially the accumulated
provision for impairment will be reduced accordingly.
If there is objective evidence of impairment of thevalue of an asset, an impairment loss is recognisedin the Statement of Income and Expenditure andRetained Revenue Reserves in the year. The cost ofland, site development and industrial property includes
an apportionment of administration costs associatedwith the acquisition or development of the assets.

30

For Year Ended 31 December 2015(e) Industrial Property
Industrial Property included in tangible fixed assets
has been acquired, developed or constructed forthe purposes of assisting in the promotion anddevelopment of industry and is not considered to beinvestment property but normal fixed assets. By way ofmemorandum Income and Expenditure in respect ofIndustrial Property transactions are set out in note 22
to the Financial Statements.

(f) Intangible Fixed Assets:
Intangible Fixed Assets comprise telecommunication
assets which constitute an indefeasible right of use of
a designated portion of a global telecommunications
network for a period of 25 years from 2000.

(g) Receivables
Receivables are recognised at fair value, less a provision
for doubtful debts. The provision for doubtful debts isa specific provision, and is established when there is
objective evidence that IDA will not be able to collect
all amounts owed to it. All movements in the provision
for doubtful debts are recognised in the Statementof Income and Expenditure and Retained Revenue
Reserves. Receivables include :(i) Properties sold on a deferred basis. Interest is
charged on these amounts at the Exchequer
Lending Rates advised by the Department of
Finance or the EU Discount Reference Rate as
applicable.

Notes to the Financial Statements (continued)(ii) Rents due under the terms of lease agreements,
for periods of up to 35 years, entered into between
the Agency and tenants, charges for the use of
undeveloped lands and estate maintenancecharges billed to tenants.
(iii) Fees from purchase options given on IDA property,
deposits paid by IDA for the purchase of property
where title had not passed to the Agency at 31
December, and the provision of other services.
(iv) Amounts due in respect of the disposal or leasing of
telecommunication assets.
(v) Amounts due in respect of joint arrangements.
(vi) Amounts due in respect of loans advanced andinterest thereon.

(h) Payables comprise amounts payable
in respect of:(i) Creditors and Accruals.
(ii) Grants that have matured for payment when the
grantee complies with stipulated conditions.
(iii) Deposits for uncompleted sales.

(i) Provisions for liabilities
and charges comprise:(i) Amounts provided in respect of potential costs
associated with the dilapidations provision ofoperating leases.
(ii) Amounts provided where the future costs arisingunder operating leases are estimated to exceed theamounts recoverable from sub lessees.

(j) Foreign Currencies
Monetary assets and liabilities denominated in foreign
currencies are translated at the exchange rates rulingat the Statement of Financial Position date. Revenues
and costs are translated at the exchange rates rulingat the dates of the underlying transactions. Profits andlosses arising from foreign currency translations andon settlement of amounts receivable and payable inforeign currency are dealt with in the Statement of
Income and Expenditure and Retained Revenue
Reserves.

(k) Leases
The rentals under operating leases are dealt with in
the Financial Statements as they fall due. In the case ofindustrial property available for promotion a provision
is made, where applicable, for future rental payments
by the Agency.

(l) Employee Benefits
Short-term Benefits
Short term benefits such as holiday pay are recognised
as an expense in the year, and benefits that are
accrued at year-end are included in the Payables figurein the Statement of Financial Position.

31

For Year Ended 31 December 2015

Retirement Benefits
The Industrial Development (Forfás Dissolution) Act
2014 (No 13 of 2014) which was passed into law on
16th July 2014 made provision for the dissolution of
Forfás and provided for: the establishment of IDA
Ireland, Enterprise Ireland and Science Foundation
Ireland as separate legal employers; each agency
developing its own pension scheme noting that staff
who are/were members of the Forfás Pension Scheme
join the new Agency Schemes on superannuation
terms no less favourable than those they enjoyedunder the Forfás Scheme immediately before the dateof transfer, agencies' own staff becoming membersof these schemes; and these agencies accounting forthe associated Pension Liabilities under FRS102. The
Department of Jobs Enterprise and Innovation assumes
legal responsibility for the existing Forfás pension
schemes, pensioners and former staff with preserved
benefits.
Under the Public Service Pensions (Single Scheme andother provisions) Act 2012 new entrants to the PublicService on or after 1 January 2013 become members of
the Single Public Service Pension Scheme. IDA has thefull legal responsibility for its employees as their legal
employer. This includes responsibility for the pensionsof current employees who retire after 16th July 2014.
The Financial Statements also reflect the pension
costs of IDA staff covered by the Single Public Service
Pension Scheme.

Notes to the Financial Statements (continued)
IDA's pension costs reflect unfunded defined benefit
pension schemes, which are funded annually on a pay
as you go basis from monies available to it, including
monies provided by the Department of Jobs, Enterpriseand Innovation and from certain contributions
deducted from staff salaries. Pension costs reflect
pension benefits earned by employees in the period andare shown net of retained staff pension contributions.
An amount corresponding to the pension charge isrecognised as income to the extent that it is recoverable,
and offset by grants received in the year to discharge
pension payments. Actuarial gains or losses arisingon scheme liabilities are reflected in the Statementof Comprehensive Income and a corresponding
adjustment is recognised in the amount recoverablefrom the Department of Jobs, Enterprise and Innovation.
Pension liabilities represent the present value of future
pension payments earned by staff to-date. Deferredpension funding represents the corresponding asset tobe recovered in future periods from the Departmentof Jobs, Enterprise and Innovation. Pension scheme
liabilities are measured on an actuarial basis using the
projected unit credit method.

(m) Critical Judgements, Estimatesand Assumptions
In the application of IDA Ireland's accounting policies,
management are required to make judgements,
estimates and assumptions about the carrying amountsof assets and liabilities that are not readily apparent
from other sources.

The estimates and associated assumptions are basedon historical experience and other factors that areconsidered to be relevant. Actual results may differ
from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognisedin the period in which the estimate is revised if therevision affects only that period, or in the period of therevision and future periods if the revision affects bothcurrent and future periods. The following judgements
and estimates have had the most significant effect onamounts recognised in the financial statements:
Residual values and depreciation of assets
Management have reviewed the asset lives andassociated residual values of all fixed asset classes andhave concluded that asset lives and residual values areappropriate.
Impairment reviews of assets
Assets that are subject to amortisation are reviewed
for impairment whenever events or changes incircumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised
for the amount by which the asset's carrying amountexceeds its recoverable amount. The recoverable
amount is the higher of an asset's fair value less cost tosell and value in use.

32

For Year Ended 31 December 2015

Retirement benefit obligation
The assumptions underlying the actuarial valuations
for which the amounts recognised in the financial
statements are determined (including discount rates,
rates of increase in future compensation levels andmortality rates) are updated annually based on current
economic conditions, and for any relevant changes tothe terms and conditions of the pension and postretirement plans.
The assumptions can be affected by:(i) the discount rate, changes in the rate of return on
high-quality corporate bonds(ii) future compensation levels, future labour market
conditions(iii) changes in demographics
Provisions
The Agency makes provisions for legal andconstructive obligations, which it knows to beoutstanding at the period end date. These provisions
are generally made based on historical or otherpertinent information, adjusted for recent trends
where relevant. However, they are estimates of thefinancial costs of events that may not occur for someyears. As a result of this and the level of uncertainty
attaching to the final outcomes, the actual out-turn
may differ significantly from that estimated.

Notes to the Financial Statements (continued)
2 Oireachtas Grants

33

For Year Ended 31 December 2015

4 Grant Refunds

The Oireachtas Grants are provided under section 35 of the Industrial Development(Science Foundation Ireland) Act 2003. The aggregate amount provided to IDA in respectof Grants for Industry and Grants for Industrial Property in the period 1 January 1994 to 31
December 2015 was €2.392bn.
The Oireachtas Grants as shown in the Financial Statements consist of the following sums
paid from Vote 32 - Jobs, Enterpise and Innovation:

When the conditions of a grant agreement are breached by a client company, the grant isrecoverable. During the year the Agency recovered €2.536m (€2.226m in 2014) relating
to grant refunds.

5 Other Income		

2015

2014

		
€’000
€’000

		 2015

2014

Income from sub-letting Property re-assigned from Forfás 		

226

848

		 €’000€’000

Private sector sublets of Leased Office Accommodation 		

1,583

612

Grant for Promotion andBank Interest 		485

Administration Expenditure

Vote 32 - Subhead A5 (i)39,71338,805

Fee Income in respect of Undeveloped Lands 		

227

350

Grant for Industry

Vote 32 - Subhead A5 (ii)

98,00084,500Interest on Industrial Property Transactions 		

27

23

Grant for Industrial Property

Vote 32 - Subhead A5 (iii)

18,0007,500

Sundry Income 		46

25

155,713130,805

The Grant for Promotion and Administration Expenditure of €39.713m is stated netof employee pension contributions of €886,433 (€344,831 - 2014) remitted to the
Exchequer.

		
2,113
1,943

6 Profit on Disposal of Assets		

2015

2014

		
€’000
€’000
3 National Training Fund
Included in the training grant payments of €8.808m (see note 7) aretraining grant payments of €3m (€3m in 2014) which were met with funds
received through the Department of Jobs, Enterprise and Innovation fromthe National Training Fund, which is administered through the Departmentof Education & Skills Subhead B3. Payments made are in compliance withthe statutory requirements of the Fund as provided for in section 7 of the
National Training Fund Act, 2000.

Consideration (net of fees and direct expenses) 		

9,401

23,999

Historical Costs 		

(12,753)(25,048)

Write back of provision for impairment 		

2,008

1,676

Write back of provision for depreciation 		

6,784

6,267

		
5,440
6,894
The profit on disposal of €5.44m is stated net of losses of €0.575m.

Notes to the Financial Statements (continued)
7 Grants Payable		

2015

		
		
€’000

2014
Re-Stated€’000

Capital 		

13,09522,565

Employment 		

20,24013,817

R&D 		

55,59546,061

Training 		

8,808

5,044

Other Grants 		

825

514

		
98,56334

For Year Ended 31 December 2015

* Includes costs for two properties where the leases terminated in July 2014 and December
2015 - see note 8 (f)** The remuneration, marketing and administration costs to advance the Winning Abroad
programme are included above. In 2014 the costs were recorded in Grants Payable.
The costs in 2015 were €3.866 million (2014 €438,000). The 2014 comparative has
been reclassified in line with the revised treatment. The Winning Abroad programme,
which commenced in 2014, is part of a Government initiative to undertake a three year
investment programme to help identify new sectors and business opportunities for Irelandin the global marketplace and create additional jobs.

88,001

8 Promotion, Administration and General Expenses		(a)		2015
2014
			Re-Stated

(b)

2015

2014

Other remuneration costs comprise:

€’000

€’000

Wages and salaries

21,88520,067

1,213

1,128

-

210

23,09821,405

Employer PRSI
		
€’000
€’000
Pension costs - employer’s contribution
Board members’ fees, expenses and
248

253

Other remuneration costs ** - see 8 (b) 		 23,098

21,405

8,710

8,951

General administration **		 11,932

9,567

remuneration - see 8 (d) 		
Marketing, consultancy, promotions and advertising ** 		Costs of non industrial leased property
re-assigned from Forfas * 		

1,187

2,418

Audit fee 		50

51Provision for doubtful debts 		

(375)

(513)

(70)

(335)

44,78041,797

Less: Capitalisation of expenditureassociated with industrial property development		In 2015 €1.01m of pension levy has been deducted and paid over to the Department ofJobs, Enterprise and Innovation.

Notes to the Financial Statements (continued)

35

For Year Ended 31 December 2015(c)
Permanent Salary Breakdown

Number of Employees

2015
€

2014
€

Caroline Dowling (Appointed 2015)-

n/a

Board members remuneration was as follows: (contd.)

Employee Benefits

2015

2014

€60,000 to €70,000

3536Paul Duffy--€70,001 to €80,0003131Alan Gray--€80,001 to €90,000

25

28Geraldine McGinty

11,970

4,762€90,001 to €100,000

1013Heather Ann McSharry (retired 2014)

n/a

11,970€100,001 to €110,000

14John Murphy--€110,001 to €120,000-

1Gerard O’ Mahoney (retired 2014)n/a-€120,001 to €130,000

35Barry O’Sullivan (appointed 2015)

3,757

n/a

€130,001 to €140,000--

63,944

61,192€140,001 to €150,000

33€150,001 to €160,000-

1€160,001 to €170,000

1-€170,001 to €180,000--€180,001 to €190,000--€190,001 to €200,000--

Board Members expenses in 2015 amounted to €16,091 broken down €4,897
accommodation and €11,194 other travel, subsistence and vouched food expenses.
2015
€

2014
€

-

126,238(Appointed 1st September 2014)

168,21056,070

Total

168,210

182,308

		
Chief Executive Remuneration
Mr Barry O’Leary(Retired 31st August 2014)(d)
Board members remuneration was as follows:

2015
€

2014
€

20,52020,520Martin Shanahan (Chief Executive)--

Lionel Alexander--

Mary Campbell

11,97011,970Peter Cassells

11,97011,970Denis Collins (appointed 2015)

3,757

n/a

Frank Ryan (Chairman)

Mr Martin Shanahan

The Chief Executive receives an annual salary of €168,210 subject to standard public
sector pension arrangements and use of a company car subject to annual benefit in kindof €14,070 per annum (€4,265 in 2014).

Notes to the Financial Statements (continued)(e) Annual Rent Payable in respect of Leased Office Accommodation
Number of
Offices

Lease Expiry
Date

Gross Rent
Payable 2015

Net Rent
Payable 2015*

			
€’000

€’000

Head Office

1

2019

4,626

2,010

Regional Offices

42017-2028

328

328

Overseas Offices

18

2016-2021

1,776

1,776

6,730

4,114

		

*

This takes account of amounts received from other State bodies and private tenants
that occupy part of the office buildings concerned.

(i) In the case of Head Office and ten overseas offices, accommodation is co-locatedwith other State Agencies and / or the Irish Government Missions.
(ii) Four overseas and one regional office leases were renewed in 2015.
(iii) None of the office leases contain a break clause.
(iv) The Agency does not own any property which is used or available for theaccomodation of its staff.

36

For Year Ended 31 December 2015

37

Notes to the Financial Statements (continued)

For Year Ended 31 December 2015(f) Commitments under Operating Leases
At 31 December the commitment under operating leases is €32.6m. These leases will expire as follows:			
2015			
		
€’000
		
		
Non-Industrial
Industrial
Industrial
Non-Industrial		Property
Property
Property
Property		
Occupied under
Available for
Re-Stated		
leasesPromotion		

2014
€’000
Industrial
Property
Occupied underleases Re-StatedIndustrial
Property Available
for Promotion
Re-Statedwithin one year

6,730

1,957

2,630

6,589

3,046

3,461

in the second to fifth years inclusive

17,217

1,258

2,321

22,687

4,039

5,824

488

-

-

587

13

-

24,435

3,215

4,951

29,863

7,098

9,285

more than 5 years		

In 2013, Forfás assigned the leases on Wilton Park House, Knockmaun House and Carrisbrook House to the IDA. In 2014, the lease for Knockmaun House
was terminated. In 2015 IDA incurred expenditure of €1.01 million on rent and associated costs as a result of unoccupied office space in Carrisbrook House,as set out below. The vacancy has been long standing.
Building				Carrisbrook House

Expenditure
Vacancy
2015
rate
€		
1,186,155

84.9%

				

Cost ofvacant space€
1,007,046
1,007,046

Notes to the Financial Statements (continued)(g) Lease Exit Charges
The original leasehold interest, a full repairing and insuring lease for 65 years, in
Carrisbrook House was taken by An Chomhairle Oiliúna (AnCO – forerunner to Fas/
SOLAS) in 1969. In 1976 the lease was assigned to the former Industrial Development
Authority and subsequently assigned to Forfás in 1994. Prior to the dissolution of Forfás in2014, Carrisbrook House was assigned to IDA Ireland.
Carrisbrook House was 85% vacant for a number of years, albeit actively marketed by
Forfás and IDA in difficult market conditions. The high cost of refurbishment was a
principal factor in not reaching an agreement to sub-let the building. Also, IDA did nothave vacant possession of the entire building, due to the lease with a tenant to 2025,
thereby limiting its marketability.
In 2015 IDA considered a number of options in relation to the future use of the building.
Following consideration of the options, IDA decided to exit the lease with effect from
December 2015 as it was the least costly option to the State. IDA entered an agreement to
pay the landlord a total of €9.4m over 3 years (present value of €8.93m), the first payment
being an amount of €2.4m which was paid in December 2015. IDA took the decisionin the context that the State had a contractual liability to pay rent over the remaining
lifetime of the lease to 2034 together with additional liabilities arising from a full repairingand insuring lease.

38

For Year Ended 31 December 2015

9 Industrial Building Charges
These charges include the net costs associated with industrial buildings provided by theprivate sector and maintenance costs in respect of all promotable industrial buildings
held by IDA. Costs comprise: professional, legal and consultancy costs €1.008m [2014€1.275m], net operating lease costs €4.236m [€3.937m - 2014] and business park
maintenance costs €3.693m [2014 €4.494m], reduced by the net movement on
provisions in respect of operating leases (as set out in note 18) €5.769m [2014 €6.824m].

10 Reduction in Value of Fixed Assets

		
2015
2014
Notes

€’000

€’000

- Industrial Property

13

3,506

4,397

- Other Fixed Assets

14

366

360

13

-

-

Depreciation Charges

Impairment Charges- Industrial Property

		
3,872
4,757
The payment of €9.4m (present value of €8.93m) compared significantly more favourably
to maintaining the lease at an estimated net present value of €22.58m over the remaining
life of the lease, representing a substantial saving to the state, estimated at €13.65m.
Note 8(f) discloses that IDA also incurred €1m in rent and related charges on the building
in 2015 prior to exiting the lease.

Depreciation is calculated in order to write off the cost of assets less, where applicable,
any impairment provision over their estimated remaining useful lives. No provision for
depreciation is made in respect of land or investments.
Impairment charges arise where the book value of Industrial Property or
Telecommunications Assets exceed their estimated recoverable value.

39

Notes to the Financial Statements (continued)
11 Contribution to the Exchequer

13 Tangible Fixed Assets - Industrial Property

By agreement with the Department of Jobs, Enterprise and Innovation receipts
from promotion and administration activities, grant refunds, ESF receipts, thesale of industrial property and income derived from the sale and or leasing of
telecommunication assets to the extent that they exceed the Agency's expenditure
requirements, are refundable to the Exchequer. There were no Contributions paid
to the Exchequer in 2015 (€5.195m in 2014):

		
Land
Site
Industrial
			 Develop
Property			-ment
Occupied				 under Leases

2,359

€’000
158,5531,533(7,384)€’000
24,72820(1,953)
-

€’000
5,401
467
1,953
-

€’000
452,304
8,174(12,714)2,450

At 31 December

264,446

152,702

22,795

7,821

447,764

Provision for Impairment
At 1 January
168,829
Charge for Year
Transfers
Disposals(1,680)

8,164
(328)

6,510
(548)
-

469
548
-

183,972(2,008)At 31 December

167,149

7,836

5,962

1,017

181,964

Provision for Depreciation
At 1 January
Charge for Year
Transfers
Disposals-

145,251
2,941(6,745)

13,953224(1,045)-(2,253)
341
1,045
-

156,951
3,506(6,745)

At 31 December-

141,447

13,132(867)

153,712Net Book AmountAt 31 December

97,297

3,419

3,701

7,671

112,088

At 1 January

94,793

5,138

4,265

7,185

111,381

€’000

€’000

Administration-

386

Grant Refunds-

Telecommunication Assets

-

5,195

12 Capital
Notes

At 1 January 		

€’000

2015 		2014
€’000

€’000

€’000

111,998 		100,459

Net Movements on:- Industrial Property

13707 		11,453- Other Fixed Assets

1459 		86

Transfer from Statementof Income and Expenditure
and Retained Revenue Reserves 			 766 		11,539
At 31 December 		

Total

€’000
263,622
6,154(5,330)

2014

				

Industrial
Property
Available for
Promotion

Cost
At 1 January
Additions
Transfers
Disposals

2015

		

For Year Ended 31 December 2015

112,764 		111,998

Net Movement for Year 					

707Notes to the Financial Statements (continued)(a) Included in the table above is an amount relating to a joint arrangement entered into
in 2004 by the Agency with Fingal County Council to develop lands in Blanchardstown
Dublin in the ownership of the Council, for subsequent sale to industrial undertakings.
Under the terms of the arrangement, IDA is responsible for making infrastructural
improvements to the lands. The Agency bears the full costs of this work and is entitled
to receive half of the proceeds of any sales. The net book amount included above in
relation to this arrangement is €Nil.
14 Other Fixed Assets
		Motor Vehicles
		
			
			
Cost
€’000
At 1 January
12
Additions
Transfer from other state agency
Disposals
At 31 December

12

Office and Computer
Equipment, Fixtures& Fittings

Total

€’000
10,179
425
(39)

€’000
10,191425(39)

10,565

10,577

Provision for Depreciation
At 1 January
Charge for Year
Transfer from other state agency
Disposals

12
-

9,562
366
(39)

9,574
366
(39)

At 31 December

12

9,889

9,901

Net Book AmountAt 31 December
At 1 January

-

676
617

676
617

Net Movement for Year

-

59

59

40

For Year Ended 31 December 2015

15 Telecommunication Assets
Acting pursuant to a Government decision IDA Ireland, in conjunction with the
Department of Public Enterprise (now the Department of Communications,
Energy and Natural Resources), entered into contracts in 1999 for the purchase of
telecommunication assets in the form of an indefeasible right of use of a designatedportion of a global telecommunications network for a period of 25 years from 2000. A
portion of the capacity purchased by IDA was sold to a number of service providers. The
remaining assets have an historical cost of €38.85m, which amount has been written
off by way of an impairment charge of €21m in 2002 and aggregate depreciation of€17.85m over 8 years from 2000, resulting in a net book value of €Nil.

16 Receivables					
2015
Amounts falling due within one year:		€’000
Accounts Receivable and Prepayments 		
15,344
Provision for Doubtful debts 		
(1,274)
Amounts due in respect of disposal of Industrial Property(1)Interest Receivable 		
-

2014
€’000
13,992(2,487)(1)
1

			

14,06911,505

Amounts falling due after more than one year:
Amounts due in respect of disposal of Industrial Property

210

272

			

14,279

11,777The Accounts Receivable and Prepayments figure of €15.344m includes an amount of€3m in respect of a Board approved payment of €3m to Sligo County Council to assist in
the funding of a road development in Sligo Town. The road will enhance access to lands
owned by the Agency for the development of a business park. The Agency is committed
to providing a further €2m towards the development which is payable in 2017 uponcommencement of the project.

Notes to the Financial Statements (continued)

41

For Year Ended 31 December 201519 Pensions
17 Payables
(a)
			
2015
2014
			
Re-stated
IDA has responsibility for the pension costs of staff retiring from IDA post 16th July
		
€’000
€’000
2014, under the Industrial Development (Forfás Dissolution Act 2014). Staff who
Accounts Payable and Accruals 		
6,457
3,260
are/were members of the Forfás Pension Scheme join the new IDA Scheme on
Amount due on Uncompleted Sales 		
197
170
superannuation terms no less favourable than those they enjoyed under the Forfas
Scheme immediately before the date of transfer from Forfás to IDA. The IDA scheme
			
6,654
3,430
covers the following categories of staff in IDA:
Amounts falling due after more than one year: 		
Amounts due in respect of lease exit 		

3,000

-

			

9,654

3,430

18 Provision for Liabilities and Charges
			
2015
Operating Leases Provision 		€’000
At 1st January 		
23,095
Net (reduction) for the year 		(5,769)Total at 31st December

17,326The Operating Leases Provision comprises:- Potential building reinstatement costs associated with obligations underoperating leases.
- Future costs arising under operating leases estimated to exceed the amounts
recoverable from sub lessees.

2014
€’000
29,919(6,824)23,095

Staff Covered(a) Staff recruited upto 5 April 1995 who became pensionable after that date.
(b) Staff recruited after 5th April 1995 and before 1st January 2013.
(c) Staff recruited since 1st January 2013, who are members of the Single Publice
Service Pension Scheme. 							Each of the Schemes include Spouses and Children’s schemes. The new Single PublicService (“Single Scheme”) commenced with effect from 1 January 2013. All new
entrants to pensionable public service employment on or after 1 January 2013 are, in
general, members of the Single Scheme. The rules of the Single Scheme are set downin the Public Service Pensions (Single Scheme and Other provisions) Act 2012. Pension
liabilities in relation to those individuals employed under the Single Public Service
Scheme for less than 2 years have not been included in the 2015 pension calculation as
they will not have accrued pension rights until after 2 years service is attained.
IDA meets the net costs arising from normal retirements. These are paid out of current
income. Contributions received by IDA from staff in the contributory unfunded schemes
outlined above are used to part fund ongoing pension liabilities.
Under the Financial Measures (Miscellaneous Provisions) Act 2009 the assets of theFormer Industrial Development Authority were transferred to the National Pension
Reserve Fund on 31 December 2009. The pension schemes associated with these two

Notes to the Financial Statements (continued)
funds continue in force for existing members with no impact on benefits or associatedprovision for members. IDA Ireland remits employee contributions to the Exchequer.
Total employee contributions of €886k for these schemes were remitted by IDA to the
Exchequer in 2015 and pension costs at retirement are paid by Oireachtas Grant Vote
No 32 subhead A5 (i).
(b) Pension Disclosure under FRS102
Financial Reporting Standard 102 (FRS102) requires financial statements to reflect atfair value the assets and liabilities from an employer’s superannuation obligations andany related funding and to recognise the costs of providing superannuation benefits inthe accounting periods in which they are earned by employees.

42

For Year Ended 31 December 2015(e) Pension Liability 		2015

2014

Change in Pension Schemes’ Liabilities		
Opening Balance / Transfer from Forfas (see note 19 (i))
Update * 		Current Service Cost 		Interest Costs 		
Payments to Pensioners
Actuarial loss/(gain)		

€’000
96,987
4,605
2,317(1,974)
4,198

€’000
88,770
7,752
2,028
1,406
(928)
(2,041)

Present Value of Schemes’ Obligations at 31 December

106,133

96,987*Update - Subsequent to the transfer from Forfás, the transfer value from Forfás was
updated to take account of a number of pensioners who retired after the transfer date(c) Analysis of Total Pension Charge		
2015
2014
of 16 July 2014.
		
€’000
€’000
			Re-statedService costs 		
4,605
2,028
Interest on Pension Scheme Liabilities		
2,317
1,406
Employee Contributions utilised in payment of Pensions
(886)
(345)
			

6,036

3,089

(f) Net Deferred Funding for Pensions in Year 				
Funding Recoverable in respect of Current Year pension costs
Funding to pay Pensions 		

2015
€’000
6,922
(1,974)

2014
€’000
3,434
(928)

			

4,948

2,506

(d) Analysis of amount recognised in Statement of Comprehensive Income
IDA recognises as an asset an amount corresponding to the unfunded deferred liability
		
2015
2014
for pensions on the basis of the set of assumptions described below and a number
		
€’000
€’000
of past events. These events include the statutory basis for the establishment of theExperience (losses) / gains
(666)
2,442
superannuation schemes, and the policy and practice currently in place in relation to
Changes in assumptions (Losses)		
(3,532)(401)
funding public service pensions including contributions by employees and the annual
Actuarial (Loss) / Gain 		(4,198)2,041
estimates process. IDA has no evidence that this funding policy will not continue tomeet such sums in accordance with current practice.

Notes to the Financial Statements (continued)
The deferred funding asset for pensions at 31 December 2015 amounted to €106.133m(2014 - €96.987m, as restated). The quantification of the liability is based on thefinancial assumptions set out in note 19(g). The assumptions used, which are based on
actuarial advice, are advised to the Department of Jobs, Enterprise and Innovation.
(g) Valuation
The valuation used for FRS102 disclosures has been based on a full actuarial valuation
at 31 December 2015. The financial assumptions used to calculate scheme liabilities
under FRS102 as at 31 December were as follows;
Valuation method - Projected Unit 		
Discount rate 		Future salary increases 		
Future state pension increases 		
Future pension increases 		
Future Inflation 		2015
2.70% p.a.
3.20% p.a.
3.20% p.a.
2.70% p.a.
1.70% p.a.

20142.40% p.a.
2.75% p.a.
2.75% p.a.
2.25% p.a.
1.25% p.a.

Year of attaining age 65 		
Life expectancy - male 		Life expectancy - female 		

2015
20.9
23.5

2035
23.5
25.6

(h) History of defined Benefit Obligations - Commenced 2014
		
2015
Year Ending 31 December 		€’000
Defined Benefit Obligation 		
106,133

2014€’000
96,987

Experience (losses) / gains on Scheme Liabilities:
Amount 		
Percentage of Scheme Liabilities 		

(666)(0.6%)

2,442
2.5%

Total (loss) / gain recognised in Statementof Comprehensive Income:Amount 		
Percentage of Scheme Liabilities 		

(4,198)(4.0%)

2,041
2.0%

43

For Year Ended 31 December 2015(i) The 2014 comparative figures have been restated (refer note 25)

20 Commitments
It is estimated that future payments likely to arise from Grant Commitments amounted
to €298m as at 31 December 2015 (2014 : €232m). Capital Commitments outstandingat 31 December 2015 on contracts for the acquisition and development of Industrial
Property amounted to €13m (2014 : €11m).

21 Taxation
Section 227 of the Taxes Consolidation Act, 1997, provides an exemption from tax forincome of non-commercial state bodies. This exemption does not apply to depositinterest. Where interest receivable is subject to tax at source (e.g. DIRT), the net
receivable amount is credited to the Operating Account.
In some countries in which the Agency operates, an exemption from local taxation has
been availed of under the Governmental Services article of the relevant double taxationagreement. This position continues to be under review by the Agency which is actively
seeking clarification to determine whether overseas employment taxes arise in any of
the jurisdictions where this exemption has been availed of. The review could result in aliability to taxes but in view of the uncertainty in relation to the amount, if any, of suchpossible contingent liability no provision has been made in the financial statements forthe year ended 31 December 2015.

Notes to the Financial Statements (continued)
22 Industrial Property Income and Expenditure				
Income: 		Notes
Oireachtas Grant 		
2
Rental Income IDA Ireland Client Companies 			Fee Income in respect of Undeveloped Lands 		
5Interest on Industrial Property Transactions		
5
Profit on Disposal of Industrial Property 			
			

2015
€’000
18,000
1,143
227
27
5,440

2014
€’000
7,500
1,636
350
23
6,886

24,837

16,395

Expenditure:
Promotion, Administration andGeneral Expenses 			Industrial Building Charges 		9
Depreciation Charges and Provisions 		
10

1,355
3,168
3,506

1,395
2,882
4,397

			

8,029

8,674

Net Movement for Year 			
Transfer Capital		
1216,808(707)

7,721(11,453)

16,101(3,732)Contribution to Promotion and
Administration activities 			44

For Year Ended 31 December 201523 Compulsory Purchase Order
The Agency was involved in Judicial Review proceedings in relation to its decision toacquire lands by compulsory purchase order. The case was heard in the High Court
and the court found in favour of the Agency. The owner of the land subsequently
appealed the matter to the Supreme Court and in 2015 the Court found in favour of theapplicant setting aside the decision of the Agency to compulsorily purchase the land .
The legal costs expended by the Agency in respect of the case were €1.375 million. The
Department of Jobs Enterprise and Innovation is considering the implications of thejudgment and may bring forward legislative amendments if necessary.

24 Related Party Disclosures
Please refer to Note 8 for a breakdown of the remuneration and benefits paid to key
management.
In the normal course of business the Agency may approve grants and may also enter
into other contractual arrangements with undertakings in which IDA Board members
are employed or otherwise interested.
The Agency adopted procedures in accordance with the guidelines issued by the
Department of Public Expenditure and Reform covering the personal interests of Board
members and these procedures have been adhered to by the Board members andthe Agency. During 2015 two transactions required disclosure as the relevant grant
payment and cash receipt related to companies in which Board members are employedor are otherwise associated. The transactions comprised a grant payment of €5.09
million and a cash receipt for the sale of land of €785k.
In cases of potential conflict of interest, Board members do not receive Board
documentation or otherwise participate in or attend discussions regarding thesetransactions. A register is maintained and available on request of all such instances.

Notes to the Financial Statements (continued)
25 Transitions to FRS 102 			
As at
				
1 Jan 2014
Reconciliation of Capital and Reserves 		Note€’000
Capital and Reserves (as previously stated)		
97,241
Holiday Pay Accrual up to 01.01.14 		25 (a)(292)
Reverse Holiday Pay Accrual up to 01.01.14 		25 (a) 		
Holiday Pay Accrual up to 31.12.14 		25 (a) 		

As at
31 Dec 2014€’000
100,524
(292)
292
(286)

Capital and Reserves (as re-stated) 			
96,949100,238									Year Ended					 31 Dec 2014
Reconciliation of Surplus for the year 		Note 		
€’000
Surplus for the year as previously stated				
3,283
Holiday Pay Accrual 		25 (a) 		
6
Surplus for the year (as re-stated) 				3,289(a) IDA had previously not accrued for holiday pay earned by employees but not availedof at the reporting date. Under FRS102, the financial statements must recognise suchaccruals.
The impact of this change is an increase of €292,000 in creditors at the transition
date and €286,000 in the year-ended 31 December 2014. The surplus is reduced by€292,000 in the year-ended 31 December 2013 and there is an increase of €6k in the
year-ended 31 December 2014.

45

For Year Ended 31 December 2015(b) Prior year adjustment - Pensions
IDA became responsible for the pension costs and liabilities of IDA staff retiring post
16th July 2014. Previously, these had been accounted for in the accounts of Forfás. In
preparation of the 2015 Financial Statements an issue came to light in respect of thedata supplied by IDA to the actuary in relation to the start date of a number of IDA staff
in the pension scheme. As a result:– The amount disclosed as the Liability and the matching Deferred Pension Assettransferred from Forfas on 15 July 2014 was understated by €12.048m.
– The pension costs and the deferred pension funding in the Statement of Income &Expenditure and Retained Revenue Reserves Account were understated by matchingamounts of €176k in 2014.
– The amount disclosed as the Liability and the matching Deferred Pension Asset as at
31st December 2014 was understated by €11.848m.
The 2014 accounts have been restated to reflect the above. The change has no effecton the Agency’s surplus / deficit or on its net assets for the year ended 31 December
2015.

Summary of prior year
accounting impact
		Opening Statement of Financial Position
Pension Liability
Deferred Pension Funding Asset
Statement of Income and Retained
Revenue Reserves
Pension Cost
Deferred pension funding asset

2014 aspreviously
stated€’000

2014 asrestated

76,722
76,722

88,77088,770

2,913
2,330

3,089
2,506

€’000

Notes to the Financial Statements (continued)
Summary of prior year accounting impact (continued)				2014 aspreviously
stated€’000

2014 asrestated€’000		Statement of Comprehensive Income
Experience (loss) / gain on retirement
2,263
benefit obligations
Change in assumptions underlying the(598)
present value of retirement benefit obligations		
Adjustment to Deferred Pension Funding(1,665)(2,041)

Closing Statement of Financial Position
Pension Liability
Deferred Pension Funding Asset

96,987
96,987

85,13985,13926 Approval of Financial Statements
The Financial Statements were approved by the Board on 9th June 2016.

2,442
(401)

46

For Year Ended 31 December 2015

47

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