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John Lewis Partnership plc Interim Report 2009


2 Accounting policies (continued)

– IFRS 8 ‘Operating Segments’, requires segmental reporting to be on the same basis as internal management reporting. This standard has had no impact on the group’s profit for the period or equity. Disclosures have been amended as detailed in note 4.

For the year ended 31 January 2009, the group changed its accounting policy in respect of the financing elements of the pensions charge to include them in finance costs. This treatment of the financing elements of pension costs will provide more meaningful information in respect of business performance. For the half year ended 1 August 2009, this change in accounting policy has decreased operating expenses and increased finance costs by £12.2m. The results for the prior half year ended 26 July 2008 have been restated accordingly, resulting in reduced operating expenses and increased finance costs of £3.0m. Net assets and equity are unaffected by this change in accounting policy.

The group has a scheme to provide up to six months paid leave after 25 years service. The cost of providing the benefits under the scheme is determined actuarially. The financing elements of these costs were previously recognised in operating expenses. However, for the half year ended 1 August 2009, the group has changed its accounting policy in respect of the financing elements of long service leave to include them in finance costs. This treatment of the financing elements of long service leave costs will provide more meaningful information in respect of business performance. For the half year ended 1 August 2009, this change in accounting policy has decreased operating expenses and increased finance costs by £8.2m. The prior half year and prior full year have been restated accordingly, resulting in reduced operating expenses and increased finance costs of £1.8m for the half year ended 26 July 2008 and increased operating expenses and increased interest income of £0.2m for the year ended 31 January 2009. Net assets and equity are unaffected by this change in accounting policy.

3 Risks and uncertainties

The principal risks and uncertainties affecting the group were identified as part of the Business Review, set out on pages 23 to 25 of the John Lewis Partnership Annual Report and Accounts 2009, a copy of which is available on the group’s website www.johnlewispartnership.co.uk. These risks remain relevant for the second half of the current financial year and comprise: economic; regulatory and political; financial and treasury; pensions; fraud and compliance; operational; health and safety; and business continuity and disaster recovery.

4 Segmental reporting

From 1 February 2009, the group has adopted IFRS 8 ‘Operating Segments’. This standard replaces IAS 14 ‘Segment Reporting’. Comparative segmental information has been restated accordingly.
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