104
De La Rue Annual Report 2014
Basis of preparation
The nancial statements of De La Rue plc
(the Company) have been prepared under
the historical cost convention and have
been prepared in accordance with the
Companies Act 2006 and applicable
UK accounting standards.
Under Section 408 of the Companies Act
2006, the Company is exempt from the
requirement to present its own prot and
loss account. The Company has taken
advantage of the exemption in Financial
Reporting Standard (FRS) 29 (IFRS 7),
Financial Instruments: Disclosures, not to
prepare a financial instrument note as the
information is included in the published
consolidated financial statements of
the Group.
The Company has taken advantage
of the exemption from preparing a cash
ow statement under the terms of FRS 1,
cash ow statements.
The accounts have been prepared as at
29 March 2014, being the last Saturday in
March. The comparatives for the 2012/13
financial year are for the period ended
30 March 2013.
The following accounting policies have been
applied consistently in dealing with items
which are considered material in relation
to the Company nancial statements.
Foreign currencies
Amounts receivable from overseas
subsidiaries which are denominated
in foreign currencies are translated into
sterling at the appropriate year end rates
of exchange. Exchange gains and losses
on translating foreign currency amounts
are included within the interest section
of the profit and loss account except for
exchange gains and losses associated with
hedging loans that are taken to reserves.
Transactions in foreign currencies are
translated into the functional currency at the
rates of exchange prevailing at the dates
of the individual transactions. Monetary
assets and liabilities denominated in foreign
currencies are subsequently retranslated at
the rate of exchange ruling at the balance
sheet date. Such exchange differences
are taken to the profit and loss account.
Dividends
Under FRS 21, nal ordinary dividends
payable to the shareholders of the
Company are recognised in the period
that they are approved by the shareholders.
Interim ordinary dividends are recognised
in the period that they are paid.
Retirement benefits
The pension rights of the Company
employees are dealt with through a
self administered scheme, the assets
of which are held independently of the
Group’s nances. The scheme is a dened
benet scheme that is funded partly by
contributions from members and partly
by contributions from the Company
and its subsidiaries at rates advised by
independent professionally qualied
actuaries. In accordance with FRS 17,
the Company accounts for its contributions
as though it were a dened contribution
scheme. This is because the underlying
assets and liabilities of the scheme
cover the Company and a number of its
subsidiaries and those assets and liabilities
cannot be split between each subsidiary
on a consistent and reasonable basis.
Full details of the scheme and its decit
(measured on an IAS 19R basis) can
be found in note 22 to the consolidated
financial statements.
Financial guarantee contracts
Where the Company enters into nancial
guarantee contracts to guarantee the
indebtedness of other companies within
the Group, the Company considers
these to be insurance arrangements and
accounts for them as such. In this respect,
the Company treats the guarantee contract
as a contingent liability until such time as
it becomes probable that the Company
will be required to make a payment under
the guarantee.
Accounting policies – Company