Page 12


John Lewis Partnership plc Interim Report 2009


Notes to the financial statements

1 Basis of preparation

These interim financial statements were approved by the Board on 16 September 2009. They are unaudited, and do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006.

The results for the half year to 1 August 2009 have been prepared using the discrete period approach, considering the half year as an accounting period in isolation. The tax charge is based on the effective rate estimated for the full year, which has been applied to the profits in the first half year.

The group’s published financial statements for the year ended 31 January 2009 have been reported on by the group’s auditors and filed with the Registrar of Companies. The report of the auditors was unqualified and did not contain any statement under Section 237 of the Companies Act 1985.

This condensed consolidated interim financial information for the half year ended 1 August 2009 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34, ‘Interim Financial Reporting’, as adopted by the European Union. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 January 2009, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union.

2 Accounting policies

The group’s results for the half year to 1 August 2009 have been prepared on a basis consistent with the group’s accounting policies published in the financial statements for the year ended 31 January 2009, except as set out below. These accounting policies reflect International Financial Reporting Standards (IFRS) and interpretations that are expected to be applicable to the group for its 2009/10 financial statements. It is possible that there will be changes to these standards and interpretations before the end of the group’s 2009/10 financial year, which might require adjustments to this information before it is included in the financial statements for the year ended 30 January 2010.

The following standards were adopted by the group from 1 February 2009:

– IAS 1 (revised) ‘Presentation of Financial Statements’, requires that the group presents one performance statement (‘statement of comprehensive income’) or two statements (‘income statement’ and ‘statement of comprehensive income’). The group has elected to present two statements: an ‘income statement’ and a ‘statement of comprehensive income’. IAS 1 now also requires a ‘statement of changes in equity’ as a primary statement. The interim financial statements have been prepared under the revised disclosure requirements.