29th Jan 2008 14:27
British Sky Broadcasting Group PLC29 January 2008 BSkyB review of carrying value of investment in ITV As required by International Accounting Standard 39 ("IAS 39"), British SkyBroadcasting Group plc (the "Group") announces that, following a review of thecarrying value of its investment in ITV plc, it expects to recognise animpairment loss of £343 million as an exceptional item in the Group's incomestatement for the half year ended 31 December 2007. This has been determinedwith reference to the value of the 17.9% shareholding based on ITV's equityshare price at the 28 December 2007 (the last working day of the Group's fiscalhalf year). The Group's full interim results for the six month period ended 31 December 2007will be announced on 6 February 2008. End Enquiries: Analysts/Investors: Robert Kingston Tel: 020 7705 3726Francesca Pierce Tel: 020 7705 3337 E-mail: [email protected] Press: Robert Fraser Tel: 020 7705 3036 E-mail: [email protected] Notes On 17 November 2006, the Group acquired 696 million shares in ITV, representing17.9% of the issued capital of ITV, for a total consideration of £946 millionincluding fees and taxes. IFRS requirements: Our investment in ITV plc is valued in accordance with IAS 39. Equity investments intended to be held for an indefinite period of time areclassified as available-for-sale investments. They are carried at fair value,where this can be reliably measured, with movements in fair value recogniseddirectly in the available-for-sale reserve within equity. Impairment losses inavailable-for-sale investments are recognised in the income statement and arenot reversible. In accordance with IAS 39, the investment in ITV is carried at fair value,determined with reference to ITV's equity share price at the balance sheet date.At 31 December 2007, we expect to report a realised loss in the Group's incomestatement reflecting the decline in the ITV equity share price to its marketprice on the 28 December 2007. This expected impairment will be reported outside of operating profit in theGroup's income statement for the half year ended 31 December 2007, and will beclassified as an item not reflecting underlying business performance andtherefore will not impact adjusted performance measures. This expected reductionin carrying value of the available for sale investment will not impact theperiod's reported cash flows. Looking forward, as required by IAS 39, the effect of any further decline in theequity share price of ITV will be recognised in the income statement at therelevant balance sheet date. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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