92
IMI plc
1.1
Introduction
IMI plc (the ‘Company’) is a company domiciled in the United Kingdom. The
consolidated financial statements of the Company comprise the Company and
its subsidiaries (together referred to as the ‘Group’). The Company financial
statements present information about the Company as a separate entity
and not about the Group. The consolidated financial statements have been
prepared in accordance with International Financial Reporting Standards as
adopted by the EU and applicable law (‘IFRSs’). The Company has elected to
prepare its Parent Company Financial Statements in accordance with UK GAAP
and these are presented on pages 149 to 152. The financial statements were
approved by the Board of Directors on 26 February 2015.
1.2
Restatements and changes in
accounting estimates
Restatement in respect of other payables
The Group pays taxes in various countries which requires the interpretation
of complex tax laws in these jurisdictions. Accordingly, both the amounts
expected to be payable and the period in which settlement is likely to be made
are reassessed from time to time. During the current year, the Group performed
a review of its disclosure of the related tax liabilities, including when payment
was due, and has determined that amounts previously classified within other
payables - non-current liabilities of £35m at 31 December 2013 would be more
appropriately included in current tax. Comparatives have been reclassified to
reflect this change in presentation.
1.3
Basis of accounting
The financial statements are presented in Pounds Sterling (which is the
Company’s functional currency), rounded to the nearest hundred thousand,
except revenues, which are rounded to the nearest whole million. They are
prepared on the historical cost basis except that the following assets and
liabilities are stated at their fair value: derivative financial instruments; available-
for-sale financial assets; financial assets and liabilities identified as hedged
items; and assets and liabilities acquired through business combinations.
Non-current assets and liabilities held for sale are stated at the lower of their
carrying amounts and their fair values less costs to sell.
The policies described in this section and in the accompanying sections have
been applied consistently throughout the Group for the purposes of these
consolidated financial statements except as discussed below. Refer to section
5.4 for the Group’s significant accounting policies.
i) New or amended EU Endorsed Accounting Standards adopted
by the Group during 2014
The following amended standards were adopted in these financial statements
during 2014, none of which had any impact:
• IAS36
‘Impairment of Assets’
• IAS32
‘Financial Instruments: Presentation’
• IAS39
‘Financial Instruments: Recognition and Measurement’
• IFRIC21
‘Levies’
ii) Issued Accounting Standards which are not effective for the year
ended 31 December 2014 and are not yet endorsed by the EU
The IASB and IFRIC have issued a number of new accounting standards and
amendments with an effective date after the date of these financial statements.
The following new standards in particular are expected to have an impact on
the Group although the Group is yet to assess the full impact.
• IFRS9
‘Financial Instruments’
(2014)
A finalised version of IFRS9 was issued in July 2014, incorporating requirements
for classification and measurement, impairment, general hedge accounting
and de-recognition. The Group is yet to assess the full impact of IFRS9.
The standard will be adopted from 1 January 2018.
• IFRS15
‘Revenue from Contracts with Customers’
(2017)
IFRS15 provides a single, principles based five-step model to be applied to all
contracts with customers. Guidance is provided on topics such as the point
at which revenue is recognised, accounting for variable consideration, costs of
fulfilling and obtaining a contract and various related matters. New disclosures
about revenue are also introduced. The Group is yet to assess IFRS15’s full
impact. The standard will be adopted from 1 January 2017.
SECTION 1 – BASIS OF PREPARATION
