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Annual Report & Accounts 2007
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(s) New standards The company adopted the following new IFRS standards and interpretations. The following amendments and interpretations, which are mandatory for accounting periods beginning on or after 1 January 2007, did give rise to additional disclosures: . IFRS 7 Financial Instruments: Disclosures and the Amendment to IAS 1 Presentation of Financial Statements: Capital Disclosures did give rise to additional disclosures about the signi¢cance of ¢nancial instruments for the Group’s ¢nancial position and performance, and qualitative and quantitative disclosures on the nature and extent of risks. The following amendments and interpretations, which are mandatory for accounting periods beginning on or after 1 January 2007, did not have any effect on the ¢nancial statements of the Group and did not give rise to additional disclosures: . IFRS 4 Insurance contracts; . IFRIC 7 Applying the restatement approach under IAS 29, Financial reporting in hyper-in£ationary economies; . IFRIC 8 Scope of IFRS 2 Share-based Payments; . IFRIC 9 Re-assessment of embedded derivatives; and . IFRIC 10 Interim Financial Reporting and Impairment. A number of new standards, amendments to standards and interpretations are not yet effective for the year ended 31 December 2007, and have not been applied in preparing these ¢nancial statements. These include: . IFRS 8 Operating Segments, which becomes mandatory for the Group’s 2009 ¢nancial statements, will require the disclosure of segment information based on the internal reports reviewed by the Group’s Chief Operating Decision Maker in order to assess each segment’s performance and to allocate resources to them. . Revised IAS 23 Borrowing Costs will become mandatory for the 2009 ¢nancial statements and this revised standard removes the option to expense borrowing costs and requires that an entity capitalise borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of the asset. It is not expected to have any impact on the ¢nancial statements. . IFRIC 11 IFRS2 ^ Group and Treasury Share Transactions requires a share-based payment arrangement in which an equity receives goods or services as consideration for its own equity instruments to be accounted for as an equity-settled share-based payment transaction, regardless of how the equity instruments are obtained. IFRIC 11 will become mandatory for the Group’s 2008 ¢nancial statements, with retrospective application required. It is not expected to have any impact on the consolidated ¢nancial statements. . IFRIC 14 IAS 19 ^ The Limit on a De¢ned Bene¢t Asset, Minimum Funding Requirements and their Interaction clari¢es when refunds or reductions in future contributions in relation to de¢ned bene¢t assets should be regarded as available and provides guidance on the impact of minimum funding requirements (MFR) on such assets. It also addresses when a MFR might give rise to a liability. IFRIC 14 will become mandatory for the Group’s and Company’s 2008 ¢nancial statements, with retrospective application required. . Revised IAS 1 Presentation of Financial Statements is aimed at improving users ability to analyse and compare the information given in ¢nancial statements. . Revised IFRS 3 Business Combinations continues to apply the acquisition method to business combinations, with some signi¢cant changes. For example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with some contingent payments subsequently remeasured at fair value through income. Goodwill may be calculated based on the parent’s share of net assets or it may include goodwill related to the minority interest. All transaction costs will be expensed. . Revised IAS 27 Consolidated and Separate Financial Statements provides mainly guidance on changes in the ownership interests. 15