Strategic Review
76 Finsbury Food Group Annual Report & Accounts 2019
Notes to the Consolidated Financial Statements
Corporate Governance
Financial Statements
22. Deferred Tax Assets and Liabilities (continued) Movement in Deferred Tax during the Year
30 June 2018 £000
Intangibles
Property, plant and equipment Foreign exchange contracts
Short-term temporary differences Interest rate swaps
Discounting of deferred consideration Pension Scheme
Employee share Scheme Losses acquired
(1,148) 111 7
(10) (95) -
1,791 711
1,280 2,647
1 July 2017 £000
Intangibles
Property, plant and equipment Foreign exchange contracts
Short-term temporary differences Interest rate swaps Pension Scheme
Employee share Scheme Losses acquired
(1,239) 651 15 73
(71)
1,785 460
1,054 2,728
Acquired £000
(291) (127) - - -
(54) - - -
(472)
Acquired £000
- - - - - - - - -
Recognised in income £000
114
(399) 30 50 65 24 76
119
(199) (120)
Recognised in income £000
91
(540) (8)
(83) (24) (23)
193 226
(168) The deferred tax liability in respect of intangible assets will unwind in line with the amortisation of intangible assets.
23. Financial Risk Management The main purpose of the Group’s financial instruments is to finance the Group’s operations. The financial instruments comprise a revolving credit facility, hire purchase, finance leases, interest rate swaps, foreign currency forwards, cash and liquid resources and various items arising directly from its operations, such as trade receivables and trade payables. The main risks arising from the Group’s financial instruments are interest rate risk and liquidity risk. The Group’s policies on the management of liquidity, credit, interest rate and foreign currency risks are set out below and the main risks are also referred to in the Strategic Report on pages 21 and 22.
a) Fair Values of Financial Instruments All financial assets and liabilities are held at amortised cost apart from forward exchange contracts and interest rate swaps, which are held at fair value, with changes going through the Consolidated Statement of Comprehensive Income. The Group has not disclosed the fair values for financial instruments such as short-term trade receivables and payables, because their carrying amounts are a reasonable approximation of fair values.
The fair values of forward exchange contracts and interest rate swaps are determined using a market comparison valuation technique. The fair values are based on broker quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions in similar instruments. The fair values relating to these instruments represent level 2 in the fair value hierarchy which relates to the extent the fair value can be determined by reference to comparable market values. The classifications range from level 1 where instruments are quoted on an active market through to level 3 where the assumptions used to arrive at fair value do not have comparable market data.
Recognised in equity £000
- - - - - -
56
(256) -
(200)
Recognised in equity £000
- - - - -
29 58 -
87
29 June 2019 £000
(1,325) (415) 37 40
(30) (30)
1,923 574
1,081 1,855
30 June 2018 £000
(1,148) 111 7
(10) (95)
1,791 711
1,280 2,647
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