Notes to the Company accounts

Amendment to FRS 17 ‘Retirement benefits’ replaces the disclosures required by FRS 17 with those of IAS 19, ‘Employee benefits’, its international equivalent and amends paragraph 16 of FRS 17, so that for quoted securities, the current bid price (rather than the mid-market value) is taken as fair value. Implementation of this standard has not had a material impact on the Company’s results or assets and liabilities.

Amendment to FRS 23 ‘The Effects of Changes in Foreign Exchange Rates’ clarifies the requirements of FRS 23 regarding an entity’s investment in foreign operations and, in particular, the treatment of monetary items entered into as net investment hedges. Implementation of this amendment had no impact on the Company’s results or assets and liabilities.

UITF Abstract 41, ‘Scope of FRS 20 (IFRS 2)’ addresses the issue of whether FRS 20 ‘Share-based payment’, applies to transactions in which the entity cannot identify specifically some or all of the goods or services received. Implementation of this abstract has not had a material impact on the Company’s results or assets and liabilities.

UITF Abstract 45, ‘Liabilities arising from participating in a specific market – Waste electrical and electronic equipment’ relates to the European Union’s Directive on waste electrical and electronic equipment and deals with the responsibility of producers for the backlog of waste for goods sold to private households. Implementation of this abstract has not had a material impact on the Company’s results or assets and liabilities.

Amendment to FRS 26: ‘Financial instruments: Measurement – Recognition and derecognition’ implements the recognition and derecognition material in IAS 39. The requirements of FRS 5, ‘Reporting the substance of transactions’, are superseded for transactions that fall within FRS 26’s scope, but FRS 5 continues to apply to transactions in non-financial assets and liabilities. Implementation of this standard is not expected to have a material impact on the Company’s results or assets and liabilities.

UITF Abstract 42, ‘Reassessment of embedded derivatives’ prohibits reassessment of the treatment of embedded derivatives subsequent to initial recognition unless there is a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the contract, in which case reassessment is required. Implementation of this abstract is not expected to have a material impact on the Company’s results or assets and liabilities.

UITF Abstract 44, ‘FRS 20 (IFRS 2) – Group and treasury share transactions’ provides guidance on whether share-based transactions involving treasury shares or involving Group entities (for instance, options over a parent’s shares) should be accounted for as equity-settled or cash-settled. Implementation of this abstract is not expected to have a material impact on the Company’s results or assets and liabilities.