54 | FINANCIAL STATEMENTS | Accounting Policies
(u) Accounting for Employee Benefit Trusts (EBTs) The Group has several EBTs which own shares in the Company and other investments to enable it to satisfy certain future settlements of share-based awards. The assets of the EBTs, which relate to unvested awards, are consolidated into the Group’s results, with these own shares included within retained
(v) New standards and interpretations not applied
The International Accounting Standards Board has issued the following standards, relevant to the Group, which have not yet been applied and have an effective date after the date of these Financial Statements:
Effective for International Accounting Standards (IAS/IFRS)
Endorsed by the European Union and available for early adoption: IAS 1 Amendment IFRS 7 Amendment IFRS 13
IAS 16 Improvement IAS 19 Revised
IAS 32 Improvement IFRS 10 IFRS 11 IFRS 12
IAS 27 Revised IAS 28 Revised
IAS 32 Amendment
Not yet endorsed by the European Union: Improvements to IFRS 10, IFRS 11 and IFRS 12 (June 2012)
Presentation of Items of Other Comprehensive Income Disclosures – Offsetting Financial Assets and Financial Liabilities Fair Value Measurement
Property, Plant and Equipment Employee Benefits
Financial Instruments: Presentation Consolidated Financial Statements Joint Arrangements
Disclosure of Interests in Other Entities Separate Financial Statements
Investments in Associates and Joint Ventures Offsetting Financial Assets and Financial Liabilities
Transition Guidance
Improvements to IFRSs (2009 – 2011) (May 2012) Improvements to IFRS 1, IAS 1, IAS 16, IAS 32 and IAS 34 Investment Entities IFRS 9
Amendments to IFRS 10, IFRS 12 and IAS 27 Financial Instruments (issued in 2009 and revised in 2010) Impact of new accounting standards
The list of new standards and interpretations above are effective for periods beginning on or after 1 January 2013. The revised standard which will have a numeric impact on the 2013 Financial Statements is IAS 19 Revised – Employee Benefits.
IAS 19 Revised – Employee Benefits contains changes in recognition and measurement of employee benefits. One of the changes in respect of defined benefit pension arrangements is that a ‘net interest cost’ will replace the current ‘interest cost and expected return on assets’. The discount rate will be used to calculate the ‘net interest cost’ instead of a separate assumption for ‘asset returns’. In addition, administrative expenses will be shown separately and not within the ‘net interest cost’. Ongoing, the quantum of the ‘net interest cost’ will depend on the size of the defined benefit deficit and the discount rate.
The 2012 Consolidated Income Statement will be restated upon adoption of the revised standard at 1 January 2013. The impact on the 2012 Income Statement is expected to result in the following amendments to loss before tax:
• Operating expenses to increase by £0.1m, finance revenue to reduce by £10.7m, finance costs to reduce by £10.2m resulting in an overall increase in the loss before tax of £0.6m.
It is not expected that this new standard will have a material impact to the Consolidated Statement of Financial Position at either 31 December 2011 or 31 December 2012.
Other standards effective in 2013, which will impact the Group include:
• IAS 1 Amendment – Presentation of Items in Other Comprehensive Income (OCI) is a presentational change which will require the items in OCI to be split between those which could be recycled to the Income Statement and those which cannot.
• IFRS 13 – Fair Value Measurement clarifies how fair value should be measured. This is not expected to have a significant impact on the Group’s current measurement of fair values.
The Directors are investigating the impact of the other new and revised standards to be implemented in 2014 and beyond. It is anticipated that, at a minimum, additional disclosures will the required. The Group intends to adopt the standards in the reporting period in which they become effective.
accounting periods beginning on or after
1 July 2012
1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2014 1 January 2014 1 January 2014 1 January 2014 1 January 2014 1 January 2014
1 January 2013 1 January 2013 1 January 2014 1 January 2015
earnings at cost. Consideration received for such shares is also recognised in retained earnings. No gain or loss is recognised in the performance statements on the purchase, sale, issue or cancellation of equity shares. Other investments held by EBTs are recognised as assets in the Statement of Financial Position.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143