For all periods up to and including the year ended 31 December 2014, the Company prepared its financial statements in accordance with previously extant United Kingdom generally accepted accounting practice (UK GAAP). These financial statements, for the year ended 31 December 2015, are the first the Company has prepared in accordance with FRS 101.
Accordingly, the Company has prepared individual financial statements which comply with FRS 101 applicable for periods beginning on or after 1 January 2014 and the significant accounting policies meeting those requirements are described in the relevant notes.
In preparing these financial statements, the Company has started from an opening balance sheet as at 1 January 2014, and made those changes in accounting policies and other restatements required for the first-time adoption of FRS 101. As such, this note explains the principal adjustments made by the Company in restating its balance sheet as at 1 January 2014 prepared under previously extant UK GAAP and its previously published UK GAAP financial statements for the year ended 31 December 2014.
On transition to FRS 101, the Company has applied the requirments of paragraph 6-33 of IFRS 1 First time adoption of International Financial Reporting Standards.
Exemptions applied
IFRS 1 allows first time adopters certain exemptions from the general requirements to apply IFRSs retrospectively. The Company has taken advantage of the following exemptions:
IFRS 2 Share-based payment has not been applied to any equity instruments that were granted on or before 7 November 2002, nor has it been applied to equity instruments granted after 7 November 2002 that vested before 1 January 2005. This treatment is consistent with the transitional provisions taken when the Company adopted FRS 20, the UK equivalent standard.
Cumulative actuarial gains and losses on pensions and other post employment benefits are recognised in full in equity on the date of transition to IFRS. This is the same treatment as under UK GAAP.
Reconciliation of equity as at 1 January 2014
| Note | UK GAAP
£m | FRS 101
reclassifications /
remeasurements
£m | FRS 101
£m |
|---|
| Fixed assets | | | | |
| Intangible fixed assets | 14 | – | 6.3 | 6.3 |
| Tangible fixed assets | 14 | 6.7 | (6.3) | 0.4 |
| Investments | | 393.2 | – | 393.2 |
| Receivables | 14 | – | 6.7 | 6.7 |
| | 399.9 | 6.7 | 406.6 |
| Current assets | | | | |
| Receivables - due within one year | 14 | 14.9 | – | 14.9 |
| Receivables - due after one year | 14 | 5.6 | (5.6) | – |
| | 20.5 | (5.6) | 14.9 |
| Current liabilities | | | | |
| Payables | | (14.0) | – | (14.0) |
| Net current assets | | 6.5 | (5.6) | 0.9 |
| Total assets less current liabilities | | 406.4 | 1.1 | 407.5 |
| Payables: Amounts falling due after more than one year | | (1.1) | – | (1.1) |
| Retirement benefit obligations | 14 | – | (4.8) | (4.8) |
| Net assets | | 405.3 | (3.7) | 401.6 |
| Capital and reserves | | | | |
| Called-up share capital | | 33.1 | – | 33.1 |
| Share premium account | | 177.1 | – | 177.1 |
| Other reserves | | 133.9 | – | 133.9 |
| Profit and loss account | 14 | 61.2 | (3.7) | 57.5 |
| Shareholders' funds | | 405.3 | (3.7) | 401.6 |
Reconciliation of equity as at 31 December 2014
| Note | UK GAAP
£m | FRS 101
reclassifications
remeasurements
£m | FRS 101
£m |
|---|
| Fixed assets | | | | |
| Intangible fixed assets | 14 | – | 9.5 | 9.5 |
| Tangible fixed assets | 14 | 9.9 | (9.5) | 0.4 |
| Investments | | 392.6 | – | 392.6 |
| Receivables | 14 | – | 5.0 | 5.0 |
| | 402.5 | 5.0 | 407.5 |
| Current assets | | | | |
| Receivables - due within one year | 14 | 8.9 | (1.0) | 7.9 |
| Receivables - due after one year | 14 | 3.8 | (3.8) | – |
| | 12.7 | (4.8) | 7.9 |
| Current liabilities | | | | |
| Payables | | (9.1) | – | (9.1) |
| Net current assets / (liabilities) | | 3.6 | (4.8) | (1.2) |
| Total assets less current liabilities | | 406.1 | 0.2 | 406.3 |
| Payables: Amounts falling due after more than one year | | (7.1) | – | (7.1) |
| Retirement benefit obligations | 14 | – | (1.0) | (1.0) |
| Net assets | | 399.0 | (0.8) | 398.2 |
| Capital and reserves | | | | |
| Called-up share capital | | 33.1 | – | 33.1 |
| Share premium account | | 177.1 | – | 177.1 |
| Other reserves | | 128.9 | – | 128.9 |
| Profit and loss account | 14 | 59.9 | (0.8) | 59.1 |
| Shareholders' funds | | 399.0 | (0.8) | 398.2 |