30th Nov 2006 07:03
Britvic plc30 November 2006 PART 2 OF 2 34 Reconciliation of equity at 2 October 2005 Effect of transition to UK GAAP IFRS IFRS Footnote £m £m £mAssetsNon-current assetsProperty, plant and equipment (a) 261.8 (30.3) 231.5Intangible assets (a)&(b) 61.9 34.8 96.7Trade and other receivables (i) - 2.4 2.4Deferred income tax assets (f) - 2.7 2.7 323.7 9.6 333.3Current assetsInventories 37.9 - 37.9Trade and other receivables 101.8 - 101.8Cash and cash equivalents 19.4 - 19.4 159.1 - 159.1Total Assets 482.8 9.6 492.4 Equity and LiabilitiesIssued capital (12.3) - (12.3)Share premium (25.4) - (25.4)Revaluation reserve (c) (4.1) 4.1 -Share option reserve (d) - (0.8) (0.8)Other reserves (a),(c)&(f) (4.6) (2.5) (7.1)Retained earnings (h) 29.5 (6.1) 23.4Total equity (16.9) (5.3) (22.2)Non-current liabilitiesInterest-bearing loans and borrowings (219.3) - (219.3)Pension liability (e) (58.3) (26.3) (84.6)Deferred income tax liabilities (f) (22.7) 22.7 - (300.3) (3.6) (303.9)Current liabilitiesTrade and other payables (g) (141.7) (0.7) (142.4)Interest-bearing loans and borrowings (13.9) - (13.9)Non-interest bearing loans and borrowings (2.8) - (2.8)Income tax payable (7.2) - (7.2) (165.6) (0.7) (166.3)Total Liabilities (465.9) (4.3) (470.2)Total Equity and Liabilities (482.8) (9.6) (492.4) a) Software costs of £25.2m treated as tangible fixed assets under UK GAAP have been reclassified as intangible fixed assets under IFRS. £5.1m of revalued leasehold land classified as a finance lease under UK GAAP has been reclassified as an operating lease under IFRS.b) Amortisation of £9.6m charged under UK GAAP for the period has been reversed under IFRS, as goodwill is not amortised under IFRS but instead is tested annually for impairment.c) The revaluation reserve recognised under UK GAAP has been reclassified as other reserves under IFRS, as the Group has elected, under IFRS 1, to retain UK GAAP carrying values of property, plant and equipment including revaluations as deemed cost at transition.d) IFRS 2 requires the fair value of option and share awards to be charged to the income statement over the vesting period. The fair value is determined at the date of grant using an appropriate pricing model. The Group have elected to take the exemption under IFRS 1 not to apply IFRS 2 to grants of equity instruments on or before 7 November 2002 that had vested prior to 1 January 2005.e) Pension liabilities increased by £0.9m (net of deferred tax) under IFRS because the method of valuing pension scheme assets differs from UK GAAP. Deferred tax assets of £25.4m which were netted off against the related pension liabilities under UK GAAP are now included within the deferred tax headings on the face of the balance sheet.f) Adjustments to deferred tax relate to the recognition of: (i) A deferred tax asset of £0.7m relating to the cost of share options granted to employees under IFRS. (ii) A deferred tax liability of £2.0m in respect of certain revalued land under IFRS. (iii) A deferred tax asset of £1.4m in respect of certain qualifying revalued buildings under IFRS. (iv) A deferred tax asset of £0.2m relating to the cost of holiday pay accrued under IFRS. (v) A deferred tax liability of £0.3m under IFRS, relating to goodwill amortised on assets acquired post April 2002, which is deductible for taxation purposes. (vi) The reclassification of the deferred tax asset of £25.4m relating to the pension liability which is netted against the pension liability under UK GAAP, and the reclassification of the resulting deferred tax asset to non-pension items.g) Under IFRS, a liability is recognised for wages and salaries costs accrued in respect of untaken holiday at the balance sheet date.h) The adjustments to retained earnings are as follows: 2005 £mAdjustments to profit for the period under IFRS (note 33) (8.4)Gross pension liability recognised on transition to IFRS 0.9Deferred tax recognised on gross pension liability on transition to IFRS (0.3)Increased actuarial losses for the period under IFRS 0.3Deferred tax on increased actuarial losses for the period under IFRS (0.1)Deferred tax recognised on transition to IFRS relating to share options granted to employees (0.2)Deferred tax recognised for the period under IFRS relating to share options granted to employees (0.4)Deferred tax recognised on transition to IFRS relating to the upward revaluation of certain land 2.0Recognition of fair value of share options granted to employees under IFRS 0.3Movement on revaluation reserve under UK GAAP reclassified under IFRS (0.3)Recognition of operating lease rentals for land on transition to IFRS 0.1Total emoluments (6.1)i) Lease premiums are treated as prepayments under IFRS and are released to the income statement over the term of the associated lease. 35 Events after the balance sheet date Since 1 October 2006, in the opinion of the directors, there have been no othersignificant events since the balance sheet date that require adjustment to, ordisclosure in the financial information. 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