ANNUAL REPORT AND FINANCIAL STATEMENTS 2011 | 47


Accounting Policies Basis of preparation and statement of compliance


These are the Consolidated Financial Statements of F&C Asset Management plc and its subsidiaries (the Group) which have been prepared on a going concern basis and in accordance with International Financial Reporting Standards, as adopted by the European Union (adopted IFRS), and those parts of the Companies Act 2006 applicable to companies reporting under adopted IFRS. These Consolidated Financial Statements are presented in millions of pounds Sterling, rounded to one decimal point, except where otherwise indicated.


Certain figures reported in the 2010 Financial Statements have been reclassified within these Financial Statements for consistency with the presentation applied within these Financial Statements. These changes are presentational in nature and do not change the previously reported financial results for the year ended 31 December 2010 nor the aggregate assets and liabilities at that date.


Going concern The Group’s business activities, together with the factors likely to affect its future development, performance and position are set out in the Business Review on pages 2 to 21. The financial position of the Group, its cash flows and liquidity position are also described in the Business Review. In addition, note 36 to the Financial Statements includes the Group’s objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and its exposure to credit risk and liquidity risk.


The Group has considerable financial resources together with long- term contracts with a number of clients across different geographic areas and industries. After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing these Financial Statements.


New or revised standards The Group has adopted the following new or revised standards and interpretations as of 1 January 2011:


The amendments to the standards and interpretations below did not have any impact on the accounting policies, financial position or performance of the Group:


Amendments to IFRS: IAS 32


Financial Instruments: Presentation: Amendments relating to classification of Rights Issues


IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments IFRS 1 IAS 24


Related Party Disclosures: Revised definition of related parties


Limited Exemption from Comparative IFRS 7 Disclosures


IFRIC 14 IAS 19 – The limit on a Defined Benefit Asset, Minimum Funding Requirements and their interaction: Prepayments of a Minimum Funding Requirement


2010 Improvements to IFRS (issued May 2010): IFRS 1


IFRS 3 IFRS 7 IAS 1


Business Combinations


Financial Instruments: Disclosures Presentation of Financial Statements


IAS 27 Consolidated and Separate Financial Statements IAS 23


Interim Financial Reporting


Parent Company Financial Statements The parent Company has continued to present individual Financial Statements prepared on a UK GAAP basis as permitted by section 395(1) of the Companies Act 2006, adopting the exemption of omitting the Profit and Loss Account and related notes conferred by section 408 of that Act. The Company Financial Statements, together with their respective accounting policies and notes, are presented on pages 126 to 140.


Accounting estimates, assumptions and judgements The preparation of the Financial Statements necessitates the use of estimates, assumptions and judgements. These estimates, assumptions and judgements affect the reported amounts of assets, liabilities, contingent assets and contingent liabilities at the reporting date as well as the reported income and expenses for the year. While estimates are based on management’s best knowledge and judgement using information and financial data available to them, the actual outcome may differ from these estimates.


The key sources of estimation, uncertainty and critical judgements in applying accounting policies are disclosed, where appropriate, in the following notes to the Consolidated Financial Statements:


(a) Impairment testing of intangible assets The projected revenue growth, projected operating cost growth and discount rates applied to cash flow projections, as disclosed in note 13.


(b) Pension assumptions The mortality assumptions, expected rates of return, discount rates, rates of salary increases and inflation increases, as disclosed in note 25.


(c) Non-controlling interest (NCI) put options The fair value of the F&C REIT NCI put options is subject to uncertainties in respect of future performance and other factors impacting the valuation of the F&C REIT Group. Details of these put options are disclosed in note 28.


First-time Adoption of International Financial Reporting Standards


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