28th Feb 2006 12:30
Cairn Energy PLC28 February 2006 28 February 2006 CAIRN ENERGY PLC 2005 PRELIMINARY RESULTS REPORTING AND ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) Cairn Energy PLC intends to publish its preliminary results for the year ended31 December 2005 under IFRS on Tuesday, 14 March 2006. Cairn has adopted International Financial Reporting Standards (IFRS) as thebasis for preparation of its financial statements from 1 January 2005, with adate of transition to IFRS of 1 January 2004. Interim results to 30 June 2005and associated audited restated financial information were prepared and issuedon this revised basis during 2005. Those financial documents highlighted thatthe Group was continuing to apply its existing full cost accounting policy foroil and gas assets to both the exploration and appraisal activity phase and tothose in the development and production phase, pending receipt of any guidanceor clarification from either the International Financial ReportingInterpretations Committee (IFRIC) Agenda Committee or IFRIC. Following the subsequent publication of IFRIC guidance in November 2005, whichnoted the limited scope of IFRS 6 "Exploration for and Evaluation of MineralResources", Cairn announced on 17 January 2006 it had updated its oil and gasaccounting policy and as a consequence had decided to adopt a successful effortsbased accounting policy for its financial statements. As a consequence, Cairn has updated the restatement document issued previouslyon 8 September 2005 to reflect changes arising from the implementation of thisrevised methodology. Cairn is today providing audited revised year ended 31December 2004 restated results prepared on the basis of revised accountingpolicies under IFRS. This restated financial information and revised accountingpolicies are presented in this press release along with reconciliations from UKGenerally Accepted Accounting Practise ("UK GAAP") to IFRS. These accounting changes do not impact the fundamentals of the business. Thereis: • No impact on the underlying business • No effect on the Group's trading cash flows or cash available for investment • No effect on the Group's strategy or management of its business The key implications for Cairn's financial statements on adopting this policyare as follows: •Costs of unsuccessful wells initially capitalised within exploration assets are expensed in the income statement in the period in which they are determined unsuccessful; •Depletion of development/producing assets is now performed on a field by field basis although fields within development areas can be combined where appropriate; •Impairment testing for development/producing assets is now performed on each individual cash generating unit - this is usually, but not always, the development area; and •Cairn has elected to measure certain development/producing assets at the transition date to IFRS (1 January 2004) at fair value and use this fair value as their deemed cost, as allowable under IFRS 1- "First time adoption of International Financial Reporting Standards". Other principle differences between UK GAAP and IFRS disclosed in therestatement document issued in September 2005 are unaffected by this update andare detailed in the revised document. The impact on the Balance Sheet at 2004 on transition to IFRS from UK GAAP is asfollows: UK GAAP IFRS £'m £'mShareholders' funds / Total equity 431 371 Cairn intends to adopt the US dollar as the reporting currency for the Group'sresults for the year ended 31 December 2005. Restated US Dollar balancesprepared from updated accounting policies reflecting a US Dollar reportingcurrency have been included in the restatement document for comparativepurposes. Enquiries to: Cairn Energy PLC Tel: 0131 475 3000Kevin Hart, Finance DirectorKerry Crawford, Senior Group Finance Manager NOTES TO EDITORS: • Cairn focuses its activities on the geographic region of South Asia. The Group holds material exploration and production positions in west India, east India and Bangladesh along with new exploration rights in northern India and Nepal. • This focus on South Asia has already resulted in a significant number of oil and gas discoveries. In particular, the company made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. • "Cairn" where referred to in this release means Cairn Energy PLC and/or its subsidiaries, as appropriate. • Cairn has now made 17 oil and gas discoveries on Rajasthan block RJ-ON-90/1. • Working interests of Rajasthan block RJ-ON-90/1 development area: Cairn 70% ONGC 30%. Cairn Energy Live Audio Webcast The webcast of the 2005 Results presentation will be available at 09:00hrs (UKtime) on Tuesday 14 March, 2005 This will be available on the Cairn Energy PLC website:www.cairn-energy.plc.uk An archived version of the webcast will be available in the afternoon For further information on Cairn see www.cairn-energy.plc.uk Disclaimer: Note: There are matters discussed in this Statement that are forward looking.All such forward-looking statements are based on our management's assumptionsand beliefs in light of information available to them at this time. Theseforward-looking statements are, by their nature, subject to significant risksand uncertainties and actual results, performance or achievements may bematerially different from those expressed in such statements. Cairn Energy PLC Restatement of 2004 Results from UK GAAP to IFRS Updated 28 February 2006 Contents Introduction.................................................................. 2Independent Auditors' Report.................................................. 4Group IFRS Income Statement for the year ended 31 December 2004............... 6Group IFRS Statement of Changes in Equity for the year ended 31 December 2004. 7Group IFRS Balance Sheet as at 31 December 2004............................... 8Group IFRS Balance Sheet as at 31 December 2003............................... 9Note 1 - Accounting Policies................................................. 10Reconciliation of Group Equity as at 31 December 2004........................ 16Reconciliation of Group Equity as at 31 December 2003........................ 17Reconciliation of Group Income Statement for the year ended 31 December 2004. 18Note 2 - Reconciling items between UK GAAP and IFRS.......................... 19Glossary of Terms............................................................ 22 Introduction Cairn has a mandatory requirement to implement IFRS for accounting periodscommencing 1 January 2005. This requires Cairn to report its financial resultsunder applicable International Accounting Standards and International FinancialReporting Standards (hereafter referred to as "IFRS"), including comparativeinformation from the Group's interim 2005 results. Cairn originally released restated IFRS results for prior periods on 8 September2005 and its interim 2005 results under IFRS on 20 September 2005. Both sets ofresults were prepared on the basis of the Group's continued application of itsfull cost accounting policy for oil and gas assets to both the exploration andappraisal activity phase and to those in the development and production phase.When these results were authorised for issue, the Board were aware that, owingto a lack of clarity in the authoritative literature, no consensus had beenreached amongst the UK oil industry and the accounting profession on the statusof full cost accounting policies under IFRS beyond the exploration and appraisalphase. As noted in the restatement document, this point was referred to theAgenda Committee of the International Financial Reporting InterpretationsCommittee ("IFRIC") to request clarification. The Agenda Committee subsequentlyissued guidance that the scope of IFRS 6 "Exploration for and Evaluation ofMineral Resources" is limited to exploration and appraisal activities and thataccounting policies for development and production activities are to be based onthe provisions of other existing IFRS. Following this clarification from the IFRIC Agenda Committee, Cairn has reviewedits oil and gas accounting policy for both exploration and appraisal anddevelopment/producing assets. Cairn has decided to adopt a successful effortsbased accounting policy for the Group's 2005 Annual Report and Accounts and hasupdated its restatement of prior periods to reflect this change in policy. Therevised accounting policy is detailed in Note 1. The key implications for Cairn's financial statements on adopting this policyare as follows: •Costs of unsuccessful wells initially capitalised within exploration assets are expensed in the Income Statement in the period in which they are determined unsuccessful; •depletion of development/producing assets is now performed on a field by field basis although fields within development areas can be combined where appropriate; and •impairment testing for development/producing assets is now performed on each cash generating unit - this is usually, but not always, the development area. The Group's Balance Sheets as at 31 December 2003 and 31 December 2004 and theGroup Income Statement and the Statement of Changes in Equity for the year ended31 December 2004 have therefore been restated to comply with IFRS and arepresented with reconciliations from UK GAAP to IFRS and revised accountingpolicies. Cairn also intends to adopt the US dollar as the reporting currency for theGroup's results for the year ended 31 December 2005. On adoption, the Group'sexisting foreign currencies accounting policy defined in Note 1 will be updatedto reflect the revised translation policy to US dollars. Restated US dollarbalances prepared under this revised policy have been included in this documentfor comparative purposes. On the first time adoption of IFRS, the general principle for applying IFRS isone of full retrospective application. IFRS 1 "First time adoption ofInternational Financial Reporting Standards" does, however, allow the first timeadopter certain exemptions from this principle. IFRS 1 contains both mandatoryand optional exemptions. From the optional exemptions, Cairn has elected: •Not to restate financial information for business combinations which occurred prior to 31 December 2003; •To deem cumulative translation differences arising on consolidation of subsidiary undertakings to be zero at 31 December 2003; and •To measure certain development/producing assets at the transition date to IFRS at fair value and use this fair value as their deemed cost. In preparing these statements, Cairn has also chosen to adopt IFRS 6 early. Other principal differences between UK GAAP and IFRS disclosed in therestatement document issued in September are unaffected by this update and areset out below for reference: •Expensing pre-exploration expenditure previously held within exploration assets and development/producing assets; •Retranslation of certain assets held by subsidiaries with non-Sterling functional currencies on consolidation; •Recognising an expense for the fair value of employee share options granted post 7 November 2002 and changes in the fair values for LTIP awards granted post 7 November 2002 including reversing expenses recognised for awards granted prior to this date; •Recognising deferred tax liabilities on prior year business acquisitions; and •Disclosure and presentational adjustments for certain assets held by the Group. The UK GAAP financial information contained in this document does not constitutestatutory accounts as defined by section 240 of the Companies Act 1985. TheCompany's auditors have issued unqualified audit opinions on the Group's UK GAAPfinancial statements for the years ended 31 December 2003 and 31 December 2004.Copies of the UK GAAP financial statements for these years have also beendelivered to the Registrar of Companies. Independent Auditors' Report INDEPENDENT AUDITORS' REPORT TO CAIRN ENERGY PLC ON THE PRELIMINARY IFRSFINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004 We have audited the accompanying preliminary International Financial ReportingStandards ("IFRS") financial statements of the Group for the year ended 31December 2004 which comprise the opening IFRS Balance Sheet as at 31 December2003, the Income Statement and the Statement of Changes in Equity for the yearended 31 December 2004 and the Balance Sheet as at 31 December 2004, togetherwith the related accounting policies note set out on pages 10 to 15. This report is made solely to the Company in accordance with our engagementletter dated 7 July 2005. Our audit work has been undertaken so that we mightstate to the Company those matters we are required to state to them in anauditors' report and for no other purpose. To the fullest extent permitted bylaw, we do not accept or assume responsibility or liability to anyone other thanthe Company for our audit work, for this report, or for the opinions we haveformed. Respective responsibilities of directors and auditorsThese preliminary IFRS financial statements are the responsibility of theCompany's directors and have been prepared as part of the Company's conversionto IFRS. They have been prepared in accordance with Note 1 which describes howIFRS have been applied under IFRS 1, including the assumptions management hasmade about the standards and interpretations expected to be effective, and thepolicies expected to be adopted, when management prepares its first complete setof IFRS financial statements as at 31 December 2005. Our responsibility is to express an independent opinion on the preliminary IFRSfinancial statements based on our audit. We read the other informationaccompanying the preliminary IFRS financial statements and consider whether itis consistent with the preliminary IFRS financial statements. This otherinformation comprises the introduction on pages 2 to 3, and the reconciliationsfrom UK GAAP to IFRS and accompanying explanations on pages 16 to 21. Weconsider the implications for our report if we become aware of any apparentmisstatements or material inconsistencies with the preliminary opening BalanceSheet. Our responsibilities do not extend to any other information. Basis of audit opinionWe conducted our audit in accordance with United Kingdom Auditing Standardsissued by the Auditing Practices Board. Those Standards require that we plan andperform the audit to obtain reasonable assurance about whether the preliminaryIFRS financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe preliminary IFRS financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as wellas evaluating the overall presentation of the preliminary IFRS financialstatements. We believe that our audit provides a reasonable basis for ouropinion. Emphasis of matterWithout qualifying our opinion, we draw attention to the fact that Note 1explains why there is a possibility that the preliminary IFRS financialstatements may require adjustment before constituting the final IFRS financialstatements. Moreover, we draw attention to the fact that, under IFRS only acomplete set of financial statements with comparative financial information andexplanatory notes can provide a fair presentation of the Company's financialposition, results of operations and cash flows in accordance with IFRS. OpinionIn our opinion, the preliminary IFRS financial statements for the year ended 31December 2004 have been prepared, in all material respects, in accordance withthe basis set out in Note 1, which describes how IFRS have been applied underIFRS 1, including the assumptions management has made about the standards andinterpretations expected to be effective, and the policies expected to beadopted, when management prepares its first complete set of IFRS financialstatements as at 31 December 2005. Ernst & Young LLPLondon28 February 2006 Group IFRS Income Statement for the year ended 31 December 2004 ------------------------------------ -------- -------- -------- -------- UK GAAP IFRS IFRS IFRS adjustments 2004 £'000 2004 2004 £'000 £'000 US$'000 ----------------------------------- -------- -------- -------- -------- Revenue 95,449 - 95,449 172,909 Cost of salesProduction costs (27,689) (37) (27,726) (50,757)Unsuccessful exploration costs - (19,392) (19,392) (36,325)DD&A (32,791) (6,569) (39,360) (72,095)------------------------ -------- -------- -------- --------Gross profit 34,969 (25,998) 8,971 13,732------------------------ -------- -------- -------- -------- Administrative expenses (18,200) 3,661 (14,539) (26,516)------------------------ -------- -------- -------- --------Operating profit/(loss) 16,769 (22,337) (5,568) (12,784)Exceptional gain on sale of oil andgas assets 2,206 (2,206) - ------------------------- -------- -------- -------- --------Profit/(loss) on ordinary activitiesbefore interest 18,975 (24,543) (5,568) (12,784) Interest income 1,811 - 1,811 3,306Finance costs (4,889) (1,345) (6,234) (10,236)------------------------ -------- -------- -------- -------- Profit/(loss) on ordinary activitiesbefore taxation 15,897 (25,888) (9,991) (19,714)Taxation on profit/(loss) on ordinaryactivities (5,055) 12,295 7,240 14,736------------------------ -------- -------- -------- -------- Profit/(loss) for the yearattributable to equity holders 10,842 (13,593) (2,751) (4,978)------------------------ -------- -------- -------- --------Earnings per ordinary share - basic 7.11p (1.80p)Earnings per ordinary share - diluted 7.05p (1.79p)------------------------ -------- -------- -------- -------- Further details of the IFRS adjustments can be found on pages 16 to 21. Group IFRS Statement of Changes in Equity for the year ended 31 December 2004 Group Group 2004 2004 £'000 US$'000 Opening equity 298,365 532,223Currency translation differences (22,575) 5,270------------------------------------ -------- --------Total (expense)/income recognised direct in equity (22,575) 5,270Loss for the year (2,751) (4,978)------------------------------------ -------- --------Total expense recognised for the year (2,751) (4,978)------------------------------------ -------- --------Total (expense)/income recognised for the year (25,326) 292------------------------------------ ------- --------New shares issued for cash 101,889 184,786New shares issued in respect of employee share options 4,559 8,267Cost of shares purchased by ESOP trust (9,329) (16,540)Share based payments charges 1,291 2,169------------------------------------ -------- --------Closing equity attributable to the Company's equityholders 371,449 711,197------------------------------------ -------- -------- Group IFRS Balance Sheet as at 31 December 2004 UK GAAP IFRS adjustments IFRS 2004 IFRS 2004 2004 £'000 £'000 US$'000 £'000Non-current assetsIntangibleexplorationassets 235,503 (45,708) 189,795 364,189PP&E -development/producing assets 232,415 (17,096) 215,319 411,737PP&E - other 1,628 (172) 1,456 2,757Intangibleassets - other - 724 724 1,347Investments 50 - 50 96Deferred taxassets - 4,554 4,554 8,744------------------------ -------- -------- -------- -------- 469,596 (57,698) 411,898 788,870------------------------- -------- -------- -------- -------- Current assetsInventory - 1,125 1,125 2,160Trade andotherreceivables 69,934 (1,652) 68,282 131,101Bank deposits - 8,000 8,000 15,361Cash and cashequivalents 72,042 (8,000) 64,042 122,961----------------------- -------- -------- -------- -------- 141,976 (527) 141,449 271,583------------------------- -------- -------- -------- --------Total assets 611,572 (58,225) 553,347 1,060,453----------------------- -------- -------- -------- -------- Current liabilitiesTrade andother payables 81,656 (2,826) 78,830 151,362Income taxliabilities - 2,930 2,930 5,626----------------------- -------- -------- -------- -------- 81,656 104 81,760 156,988------------------------- -------- -------- -------- -------- Non-current liabilitiesDeferred taxliabilities 68,148 1,362 69,510 133,463Provisions 30,628 - 30,628 58,805----------------------- -------- -------- -------- -------- 98,776 1,362 100,138 192,268------------------------- -------- -------- -------- --------Totalliabilities 180,432 1,466 181,898 349,256----------------------- -------- -------- -------- --------Net assets 431,140 (59,691) 371,449 711,197----------------------- -------- -------- -------- -------- EquityCalled-upshare capital 15,901 - 15,901 25,635Share premium 107,278 - 107,278 194,253Shares held bythe ESOP trust (14,031) - (14,031) (23,624)Foreigncurrencytranslation - (22,575) (22,575) 5,270Other reserves 24,256 - 24,256 37,284Capitalreserves - nondistributable 26,281 - 26,281 45,331Capitalreserves -distributable 109,635 - 109,635 178,429Retainedearnings 161,820 (37,116) 124,704 248,619----------------------- -------- -------- -------- --------Total equityattributableto theCompany'sequity holders 431,140 (59,691) 371,449 711,197----------------------- -------- -------- -------- -------- Further details of the IFRS adjustments can be found on pages 16 to 21. Group IFRS Balance Sheet as at 31 December 2003 UK GAAP IFRS IFRS IFRS adjustments 2003 2003 2003** £'000 £'000 US$'000 £'000Non-current assetsIntangibleexplorationassets 155,046 (24,171) 130,875 234,079PP&E -development/producing assets 236,749 (8,364) 228,385 407,132PP&E - other 1,546 (122) 1,424 2,580Intangibleassets - other - 391 391 678Investments 54 - 54 96---------------------------- -------- -------- -------- -------- 393,395 (32,266) 361,129 644,565---------------------------- -------- -------- -------- --------Current assetsInventory - 2,271 2,271 4,065Trade andotherreceivables 56,866 (2,553) 54,313 97,224Cash and cashequivalents 17,766 - 17,766 31,801---------------------------- -------- -------- -------- -------- 74,632 (282) 74,350 133,090---------------------------- -------- -------- -------- --------Total assets 468,027 (32,548) 435,479 777,655---------------------------- -------- -------- -------- -------- Current liabilitiesTrade andother payables 42,396 (5,634) 36,762 65,829Income taxliabilities - 5,689 5,689 10,157---------------------------- -------- -------- -------- -------- 42,396 55 42,451 75,986---------------------------- -------- -------- -------- --------Non-current liabilitiesDeferred taxliabilities 71,771 6,810 78,581 140,657Provisions 16,082 - 16,082 28,789---------------------------- -------- -------- -------- -------- 87,853 6,810 94,663 169,446---------------------------- -------- -------- -------- --------Totalliabilities 130,249 6,865 137,114 245,432----------------------------- -------- -------- -------- --------Net assets 337,778 (39,413) 298,365 532,223----------------------------- -------- -------- -------- -------- EquityCalled-upshare capital 15,010 - 15,010 24,021Share premium 1,721 - 1,721 2,814Shares held bythe ESOP trust (4,702) - (4,702) (7,084)Foreign currency - - - -translationOther reserves 24,256 - 24,256 37,284Capitalreserves - nondistributable 26,281 - 26,281 45,331Capitalreserves -distributable 109,635 - 109,635 178,429Retainedearnings 165,577 (39,413) 126,164 251,428---------------------------- -------- -------- -------- --------Total equityattributableto theCompany's 337,778 (39,413) 298,365 532,223equity holders---------------------------- -------- -------- -------- -------- Further details of the IFRS adjustments can be found on pages 16 to 21.** - restated UK GAAP as disclosed in 2004 annual accounts comparative figuresfollowing change in accounting policy arising from the amendment to UITF 17following implementation of UITF 38 effective for accounting periods ending onor after 22 June 2004. Note 1 - Accounting Policies a) Accounting conventionCairn prepares its accounts on a historical cost basis. b) Accounting standardsCairn prepares its accounts in accordance with applicable IFRS. This restatement of financial information for the years ended 31 December 2003and 2004 has been prepared on the basis of all IFRS and interpretations issuedby the International Accounting Standards Board ("IASB") effective for theGroup's reporting year ended 31 December 2005, on the assumption that they willbe fully endorsed by the European Commission ("EC"). Should the EC fail toendorse, there may be further changes required to the information presented. The general principle in adopting IFRS is that all applicable accountingstandards should be applied retrospectively. IFRS 1 "First time adoption ofInternational Financial Reporting Standards" allows certain exemptions whichcompanies are allowed to apply. Cairn has elected: • Not to restate financial information for business combinations which occurred prior to 31 December 2003; • To measure certain development/producing assets at the transition date to IFRS at fair value and used this fair value as their deemed cost; and • To deem cumulative translation differences arising on consolidation of subsidiary undertakings to be zero at 31 December 2003. This Statement has also been prepared in accordance with IFRS 6 "Exploration forand Evaluation of Mineral Resources" following early adoption of this standardby Cairn. c) Basis of consolidationThe consolidated accounts include the results of Cairn Energy PLC and itssubsidiary undertakings to the Balance Sheet date. The consolidated IncomeStatement and Cash Flow Statement include the results and cash flows ofsubsidiary undertakings up to the date of disposal. Cairn allocates the purchase consideration of any acquisition to assets andliabilities on the basis of fair values at the date of acquisition. Any excessof the cost of acquisition over the fair values of the assets and liabilities isrecognised as goodwill. Any goodwill arising is recognised as an asset andsubject to annual review for impairment. Business combinations arising prior to the Group's transition date to IFRS (1January 2004) have not been revisited under the exemption provided by IFRS 1.Deferred tax liabilities have been recognised on fair value adjustments whicharose from past business combinations in accordance with IAS 12. d) Joint VenturesCairn participates in several joint ventures which involve the joint control ofassets used in the Group's oil and gas exploration and production activities.Cairn recognises its share of the assets and liabilities of joint ventures inwhich the Group holds a participating interest, classified in the appropriateBalance Sheet heading. e) RevenueRevenue represents Cairn's share of oil, gas and condensate production,recognised on a direct entitlement basis and tariff income received for thirdparty use of operating facilities and pipelines in accordance with agreements. Income received as operator from joint ventures is recognised on an accrualsbasis in accordance with joint venture agreements and is included as a deductionfrom administrative expenses. Interest income is recognised on an accruals basis and is disclosed separatelyon the face of the Income Statement. f) Oil and gas exploration assets and development/producing assetsCairn follows a successful efforts based accounting policy for oil and gasassets. Costs incurred prior to obtaining the legal rights to explore an area areexpensed immediately to the Income Statement. Expenditure incurred on the acquisition of a licence interest is initiallycapitalised on a licence by licence basis. Costs are held, undepleted, withinexploration assets until such a time as the exploration phase on the licencearea is complete or commercial reserves have been discovered. Exploration expenditure incurred in the process of determining explorationtargets is capitalised initially within exploration assets and subsequentlyallocated to drilling activities. Exploration drilling costs are initiallycapitalised on a well by well basis until the success or otherwise of the wellhas been established. The success or failure of each exploration effort isjudged on a well by well basis. Drilling costs are written off on completion ofa well unless the results indicate that hydrocarbon reserves exist and there isa reasonable prospect that these reserves are commercial. Following appraisal of successful exploration wells, if commercial reserves areestablished and technical feasibility for extraction demonstrated, then therelated capitalised exploration and appraisal costs are transferred into asingle field cost centre within development/producing assets after testing forimpairment (see below). Where results of exploration drilling indicate thepresence of hydrocarbons which are ultimately considered not commerciallyviable, all related costs are written off to the Income Statement. All costs incurred after the technical feasibility and commercial viability ofproducing hydrocarbons have been demonstrated are capitalised within development/producing assets on a field by field basis. Subsequent expenditure iscapitalised only where it either enhances the economic benefits of thedevelopment/producing asset or replaces part of the existing development/producing asset. Any costs remaining associated with the replaced asset part areexpensed. Net proceeds from any disposal of an exploration asset are initially creditedagainst the previously capitalised costs. Any surplus proceeds are credited tothe Income Statement. Net proceeds from any disposal of development/producingassets are credited against the previously capitalised cost. A gain or loss ondisposal of a development/producing asset is recognised in the Income Statementto the extent that the net proceeds exceed or are less than the appropriateportion of the net capitalised costs of the asset. Depletion and amortisationCairn depletes separately, where applicable, any significant part withindevelopment/producing assets, such as fields, processing facilities andpipelines which are significant in relation to the total cost of a development/producing asset. Cairn depletes expenditure on oil and gas production and development on a unitof production basis, based on proved and probable reserves on a field by fieldbasis. In certain circumstances, fields within a single development area may becombined for depletion purposes. ImpairmentExploration assets are reviewed regularly for indicators of impairment and costsare written off where circumstances indicate that the carrying value might notbe recoverable. In such circumstances the exploration asset is allocated todevelopment/producing assets within the same geographic segment, as disclosed inthe segmental analysis notes to the financial statements, and tested forimpairment. Any such impairment arising is recognised in the Income Statementfor the period. Where there are no development/producing assets within ageographic segment, the exploration costs are charged immediately to the IncomeStatement. Impairment reviews on development/producing oil and gas assets are carried outon each cash-generating unit identified in accordance with IAS 36. Cairn's cashgenerating units are those assets which generate largely independent cash flowsand are normally, but not always, single development areas. At each reporting date, where there are indicators of impairment, the net bookvalue of the cash generating unit is compared with the associated expecteddiscounted future cash flows. If the net book value is higher, then thedifference is written off to the Income Statement as impairment. Where there has been a charge for impairment in an earlier year that charge willbe reversed in a later period where there has been a change in circumstances tothe extent that the discounted cash flows are higher than the net book value atthe time. In reversing impairment losses, the carrying amount of the asset willbe increased to the lower of its original carrying value or the carrying valuethat would have been determined (net of depletion) had no impairment loss beenrecognised in prior periods. g) Property, plant and equipmentTangible assets, other than development/producing assets, are measured at costand depreciated over their expected useful economic lives as follows: Annual Rate (%) Depreciation Method------------------------------ ------------ -------------------Tenants' improvements 10 - 33 straight lineVehicles, fixtures and equipment 25 - 50 straight line h) Intangible assetsIntangible assets, other than exploration assets, have finite useful lives andare measured at cost and amortised over their expected useful economic lives asfollows: Annual Rate (%) Amortisation Method------------------------- ------------ -------------------Computer software 25 - 50 straight line i) InvestmentsCairn recognises and measures unlisted investments where there is no quotedmarket price available at cost. j) InventoriesInventories of oil and condensate held at the Balance Sheet date are valued atnet realisable value based on the estimated selling price at that date. k) Financial instruments Trade and other receivablesTrade receivables are recognised and carried at the original invoiced amountless any allowances for doubtful debts. Other debtors are recognised andmeasured at nominal value. Bank depositsBank deposits with a maturity of over three months are held as a separatecategory of current asset and presented on the face of the Balance Sheet. Cash and cash equivalentsCash and cash equivalents comprise cash at bank and short-term deposits with amaturity of three months or less. Trade payables and other creditorsTrade payables and other creditors are non-interest bearing and are measured atcost. Interest bearing bank loansInterest bearing bank loans represent amounts drawn under the Group's revolvingcredit facilities, classified according to the length of time remaining underthe respective facility. Interest payable is accrued in the Income Statement forthe period using the effective interest rate method. Borrowing costsInterest payable and exchange differences incurred on borrowings directlyattributable to development projects are capitalised within the development/producing assets. All other borrowing costs are recognised in the Income Statement in the periodin which they are incurred. l) EquityEquity instruments issued by Cairn are recorded at the proceeds received, net ofdirect issue costs, allocated between share capital and share premium. m) TaxationThe tax expense represents the sum of current tax and deferred tax expense. The current tax is based on taxable profit for the year. Taxable profit differsfrom net profit as reported in the Income Statement because it excludes items ofincome or expense that are taxable or deductible in other years and it furtherexcludes items that are never taxable or deductible. The Group's liability forcurrent tax is calculated using tax rates that have been enacted orsubstantively enacted by the Balance Sheet date. Deferred tax is the tax expected to be payable or recoverable on differencesbetween the carrying amounts of assets and liabilities in the financialstatements and the corresponding tax bases used in the computation of taxableprofit, and is accounted for using the Balance Sheet liability method. Deferred income tax liabilities are recognised for all taxable temporarydifferences except in respect of taxable temporary differences associated withinvestments in subsidiaries, associates and interests in joint ventures wherethe timing of the reversal of the temporary difference can be controlled and itis probable that the temporary difference will not reverse in the foreseeablefuture. Deferred income tax assets are recognised for all deductible temporarydifferences, carry forward of unused tax assets and unused tax losses, to theextent that it is probable that taxable profit will be available against whichthe deductible temporary differences, carry forward of unused tax assets andunused tax losses, can be utilised. In respect of taxable temporary differencesassociated with investments in subsidiaries, associates and interests in jointventures, deferred tax assets are only recognised to the extent that it isprobable that the temporary differences will reverse in the foreseeable futureand taxable profit will be available against which the temporary difference canbe utilised. The carrying amount of deferred income tax assets is reviewed at each BalanceSheet date and reduced to the extent that it is no longer probable thatsufficient taxable profit will be available to allow all or part of the deferredincome tax asset to be utilised. Deferred tax assets and liabilities are measured at the tax rates that areexpected to apply in the periods in which the asset is realised or the liabilityis settled, based on tax rates and laws enacted or substantively enacted at theBalance Sheet date. n) DecommissioningAt the end of the producing life of a field, costs are incurred in removing anddecommissioning production facilities. Cairn recognises the full discounted costof decommissioning as an asset and liability when the obligation to rectifyenvironmental damage arises. The decommissioning asset is included within fixedassets with the cost of the related installation. The liability is includedwithin provisions. Revisions to the estimated costs of decommissioning whichalter the level of the provisions required are also reflected in adjustments tothe decommissioning asset. The amortisation of the asset, calculated on a unitof production basis based on proved and probable reserves, is shown as the"decommissioning charge" in the Income Statement, and the unwinding of thediscount on the provision is included within "finance costs". o) Foreign currenciesIn the accounts of individual Group companies, Cairn translates foreign currencytransactions into the functional currency at the rate of exchange prevailing atthe transaction date. Monetary assets and liabilities denominated in foreigncurrency are translated into the functional currency at the rate of exchangeprevailing at the Balance Sheet date. Exchange differences arising are taken tothe Income Statement except for those incurred on borrowings specificallyallocable to development projects, which are capitalised as part of the cost ofthe asset. Cairn maintains the accounts of all subsidiary undertakings in their functionalcurrency, which for all material subsidiaries is US$. Cairn translatessubsidiary accounts into Sterling using the closing rate method, whereby assetsand liabilities are translated into Sterling at the rate of exchange prevailingat the Balance Sheet date and Income Statement accounts are translated intoSterling at average rates which approximate the exchange rates at the date ofthe underlying transactions. Cairn takes exchange differences arising on thetranslation of net assets and associated long term borrowings of subsidiaryundertakings and branches whose functional currency is non-Sterling directly toreserves. On transition to IFRS Cairn has taken advantage of the exemptionoffered under IFRS 1 and assumed zero brought forward translation differences onsubsidiary undertakings as at 1 January 2004. For the year ending 31 December 2005, Cairn will be presenting its financialstatements in US$. This accounting policy will therefore be amended to reflectthe revised presentational currency in these financial statements. Rates of exchange to £1 were as follows: 31 December Average 31 December 2004 2004 2003 ---------- ----------- ----------- ----------- US$ 1.920 1.832 1.790 EUR 1.413 1.473 1.419 p) Pension schemesCairn operates defined contribution pension schemes in the UK and India. Theassets of the schemes are held separately from those of Cairn and itssubsidiaries. Cairn also operates an insured benefit scheme for certain Indianemployees as required under Indian legislation. In accordance with IAS 19 thisis treated as a defined contribution scheme. The pension cost charge representscontributions payable in the year in accordance with the rules of the schemes. q) Leasing commitmentsCairn charges rental payable under operating leases to the profit and lossaccount on a straight line basis over the lease term. r) Share schemesThe cost of awards to employees under Cairn's LTIP and share option plans arerecognised over the three year period to which the performance relates. Theamount recognised is based on the fair value of the shares as measured at thedate of the award. The shares are valued using a binomial model. The costs of awards to employees in the form of cash but based on shareperformance (phantom options) are recognised over the period to which theperformance relates. The amount recognised is based on the fair value of theliability arising from the transaction. Reconciliation of Group Equity as at 31 December 2004 UK IFRS 6 Fair Unsuccessful DD&A Foreign Taxation Other Total IFRS GAAP adjustments Value exploration adjustments currency IFRS adjustments costs translation adjustments £'000 £'000 £'000 £'000 £'00 £'000 £'000 £'000 £'000 £'000Notes on a b c e f hreconcilingitems Intangibleexplorationassets 235,503 4,027 - (44,988) - (4,747) - - (45,708) 189,795PP&E - dev./prod. assets 232,415 (22,735) 40,523 (18,362) (12,622) (3,900) - - (17,096) 215,319PP&E - 1,628 - - - - - (172) (172) 1,456otherIntangibleassets - - - - - - (14) - 738 724 724otherInvestments 50 - - - - - - - - 50Deferred taxassets - - - - - - 4,554 - 4,554 4,554------------- ------ ------- ------- ------- ------- ------- ------ ------ ------- ------Totalnon-currentassets 469,596 (18,708) 40,523 (63,350) (12,622) (8,661) 4,554 566 (57,698) 411,898------------- ------ ------- ------- ------- ------- ------- ------ ------ ------- ------Inventory - - - - - - - 1,125 1,125 1,125Trade andotherreceivables 69,934 - - - - - - (1,652) (1,652) 68,282Bank - - - - - - - 8,000 8,000 8,000depositsCash and cashequivalents 72,042 - - - - - - (8,000) (8,000) 64,042------------- ------ ------- ------- ------- ------- ------- ------ ------ ------- ------Total currentassets 141,976 - - - - - - (527) (527) 141,449------------- ------ ------- ------- ------- ------- ------- ------ ------ ------- ------ Total 611,572 (18,708) 40,523 (63,350) (12,622) (8,661) 4,554 39 (58,225) 553,347assets ------ ------- ------- ------- ------- ------- ------ ------ ------- -------------------Trade andother 81,656 - - - - - - (2,826) (2,826) 78,830payablesCurrent taxliabilities - - - - - - - 2,930 2,930 2,930------------- ------ ------- ------- ------- ------- ------- ------ ------ ------- ------Total currentliabilities 81,656 - - - - - - 104 104 81,760------------- ------ ------- ------- ------- ------- ------- ------ ------ ------- ------Deferred taxliabilities 68,148 - - - - 2,293 (931) - 1,362 69,510Provisions 30,628 - - - - - - - - 30,628------------- ------ ------- ------- ------- ------- ------- ------ ------ ------- ------Total noncurrentliabilities 98,776 - - - - 2,293 (931) - 1,362 100,138------------- ------ ------- ------- ------- ------- ------- ------ ------ ------- ------ Totalliabilities 180,432 - - - - 2,293 (931) 104 1,466 181,898------------- ------ ------- ------- ------- ------- ------- ------ ------ ------- ------ Net assets 431,140 (18,708) 40,523 (63,350) (12,622) (10,954) 5,485 (65) (59,691) 71,449------------- ------ ------- ------- ------- ------- ------- ------ ------ ------- ------ Share capitaland premium 123,179 - - - - - - - - 123,179Shares heldby (14,031) - - - - - - - - (14,031)the ESOPtrustForeigncurrencytranslation - - - - - (22,575) - - (22,575) (22,575)Reserves 160,172 - - - - - - - - 160,172Retainedearnings 161,820 (18,708) 40,523 (63,350) (12,622) 11,621 5,485 (65) (37,116) 124,704------------- ------ ------- ------- ------- ------- ------- ------ ------ ------- ------ Total 431,140 (18,708) 40,523 (63,350) (12,622) (10,954) 5,485 (65) (59,691) 371,449equity ------ ------- ------- ------- ------- ------- ------ ------ ------- ------------------- Reconciliation of Group Equity as at 31 December 2003 UK IFRS 6 Fair Unsuccessful DD&A Foreign Taxation Other Total IFRS GAAP adjustments Value exploration adjustments currency IFRS adjustments costs translation adjustments £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Notes on a b c e f hreconcilingitems Intangibleexplorationassets 155,046 4,027 - (25,163) - (3,035) - - (24,171) 130,875PP&E - dev./prod. assets 236,749 (22,698) 40,523 (18,795) (6,053) (1,341) - - (8,364) 228,385PP&E - 1,546 - - - - (13) - (109) (122) 1,424otherIntangibleassets - - - - - - - - 391 391 391otherInvestments 54 - - - - - - - - 54------------- ------ ------- ------ ------- ------- ------ ------ ------ ------- ------Totalnon-currentassets 393,395 (18,671) 40,523 (43,958) (6,053) (4,389) - 282 (32,266) 361,129------------- ------ ------- ------ ------- ------- ------ ------ ------ ------- ------ Inventory - - - - - - - 2,271 2,271 2,271Trade andotherreceivables 56,866 - - - - - - (2,553) (2,553) 54,313Cash and cashequivalents 17,766 - - - - - - - - 17,766------------- ------ ------- ------ ------- ------- ------ ------ ------ ------- ------Total currentassets 74,632 - - - - - - (282) (282) 74,350------------- ------ ------- ------ ------- ------- ------ ------ ------ ------- ------ Total 468,027 (18,671) 40,523 (43,958) (6,053) (4,389) - - (32,548) 435,479assets ------ ------- ------ ------- ------- ------ ------ ------ ------- -------------------Trade andother 42,396 - - - - - - (5,634) (5,634) 36,762payablesCurrent taxliabilities - - - - - - - 5,689 5,689 5,689------------- ------ ------- ------ ------- ------- - ----- ------ ------ ------- ------Total currentliabilities 42,396 - - - - - - 55 55 42,451------------- ------ ------- ------ ------- ------- ------ ------ ------ ------- ------Deferred taxliabilities 71,771 - - - - - 6,810 - 6,810 78,581Provisions 16,082 - - - - - - - - 16,082------------- ------ ------- ------ ------- ------- ------ ------ ------ ------- ------Total noncurrentliabilities 87,853 - - - - - 6,810 - 6,810 94,663------------- ------ ------- ------ ------- ------- ------ ------ ------ ------- ------ Totalliabilities 130,249 - - - - - 6,810 55 6,865 137,114------------- ------ ------- ------ ------- ------- - ----- ------ ------ ------- ------ Net assets 337,778 (18,671) 40,523 (43,958) (6,053) (4,389) (6,810) (55) (39,413) 298,365------------- ------ ------- ------ ------- ------- ------ ------ ------ ------- ------ Share capitaland premium 16,731 - - - - - - - - 16,731Shares heldby (4,702) - - - - - - - - (4,702)the ESOPtrustForeign - - - - - - - - - -currencytranslationReserves 160,172 - - - - - - - - 160,172Retained earnings 165,577 (18,671) 40,523 (43,958) (6,053) (4,389) (6,810) (55) (39,413) 126,164------------- ------ ------- ------ ------- ------- ------ ------ ------ ------- ------ Total 337,778 (18,671) 40,523 (43,958) (6,053) (4,389) (6,810) (55) (39,413) 298,365equity ------ ------- ------ ------- ------- ------ ------ ------ ------- ------------------- Reconciliation of Group Income Statement for the year ended 31 December 2004 UK Fair Value Unsuccessful DD&A Foreign Taxation Share Other Total IFRS IFRS GAAP adjustment exploration adjustments currency based adjustments costs translation payments £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Notes on b c d e f g h reconciling items Revenue 95,449 - - - - - - - - 95,449Cost ofsalesProductioncosts (27,689) - - - - - - (37) (37) (27,726)Unsuccessful explorationcosts - - (19,392) - - - - - (19,392) (19,392)DD&A (32,791) - - (6,569) - - - - (6,569) (39,360)------------ ------ ------- ------- ------- ------- ------ ------- ------- ------- ------Gross profit 34,969 - (19,392) (6,569) - - - (37) (25,998) 8,971 Administrationexpenses (18,200) - - - - - 3,710 (49) 3,661 (14,539)------------ ------ ------- ------- ------- ------- ------ ------- ------- ------- ------Operatingprofit/(loss) 16,769 - (19,392) (6,569) - - 3,710 (86) (22,337) (5,568) Exceptionalgain on sale 2,206 (2,206) - - - - - - (2,206) ------------- ------ ------- ------- ------- ------- ------ ------- ------- ------- ------Profit/(loss)on ordinaryactivitiesbeforeinterest 18,975 (2,206) (19,392) (6,569) - - 3,710 (86) (24,543) (5,568)Interestincome 1,811 - - - - - - - - 1,811Finance (4,889) - - - (1,345) - - - (1,345) (6,234)costs ------ ------- ------- ------- ------- ------ ------- ------- ------- ------------------Profit/(loss)on ordinaryactivitiesbefore tax 15,897 (2,206) (19,392) (6,569) (1,345) - 3,710 (86) (25,888) (9,991)Taxation (5,055) - - - - 12,295 - - 12,295 7,240------------ ------ ------- ------- ------- ------- ------ ------- ------- ------- ------Profit/(loss)for the year 10,842 (2,206) (19,392) (6,569) (1,345) 12,295 3,710 (86) (13,593) (2,751)------------ ------ ------- ------- ------- ------- ------ ------- ------- ------- ------ Note 2 - Reconciling items between UK GAAP and IFRS a) IFRS 6 adjustments Pre exploration write-offs Under IFRS 6, costs incurred prior to the legal rights to explore an area beingobtained may no longer be capitalised within exploration assets. Such costsincurred by Cairn in prior years totalling £18.7 million, including generalexploration costs not related to a specific licence, have therefore been writtenoff through retained earnings as at 31 December 2003. During 2004 Cairn incurredpre-exploration costs of £37,000 which have been expensed through the IncomeStatement (see h) below). Impairment of exploration assets Previously under UK GAAP and the Statement of Recommended Practice ("SORP")issued by the Oil Industry Accounting Committee ("OIAC"), where indicators ofimpairment existed on an asset held within the exploration cost pool, animpairment test was performed. Any resulting impairment of an exploration assetled to a transfer of the impaired amount into the depletable development/producing cost pool, the latter being subject to a separate impairment test. Under IFRS 6, where indicators of impairment exist on an exploration asset, animpairment test is performed by assigning the asset to the associateddevelopment/producing assets within the same geographic segment and testing thiscombined cost against future discounted cash flows (including any associatedwith the exploration asset). Any impairment arising would be recognised directlyin the Income Statement for the period. Where no development/producing assetsexists, impairment losses arising on the exploration would be written offimmediately to the Income Statement. As a consequence of this change, previous transfers between Cairn's explorationand development/producing cost pools of £4.2 million, which arose from theimpairment of exploration assets, have been reversed. Impairment tests have thenbeen reperformed using the IFRS approach with no impairment losses arising. b) Fair value adjustments Cairn has elected to measure certain development/producing assets at thetransition date to IFRS at fair value and use this fair value as their deemedcost, as allowable under IFRS 1. As a result of measuring at fair value at transition date, the exceptional gainon sale under UK GAAP of the sale of the Group's North Sea producing asset in2004 now results in neither a gain nor a loss being recognised. c) Unsuccessful exploration costs Cairn previously followed the full cost method of accounting for oil and gasassets. Under this method, all expenditure incurred in connection with anddirectly attributable to the acquisition, exploration, appraisal and developmentof oil and gas assets were capitalised in two geographical cost pools: SouthAsia and North Sea. Following guidance from IFRIC in November 2005 it is nolonger permissible to continue this treatment for development/producing assets.Cairn has therefore decided to change accounting policies for both explorationand development/producing assets to a successful efforts based policy. Under the Group's new policy unsuccessful exploration costs previouslycapitalised (subject to impairment reviews) are now written off in the period inwhich they are determined to be unsuccessful. The adjustments for unsuccessful costs written off in the period have been made against the Balance Sheet classifications as used under the UK GAAP full cost accounting methodology. d) DD&A The adjustments to DD&A reflect the revised carrying value of the development/producing assets as a result of the pre-exploration write offs, fair valueadjustments and the write off of exploration costs (as per notes a) to c) above.Depletion is now charged on a field by field basis, with certain fields withindevelopment areas being combined where appropriate. It is also now calculated inthe Group's functional currency of US$ rather than in Sterling as was previouslythe case under UK GAAP. e) Foreign currency translation IAS 21 requires that the functional currency for each subsidiary within theGroup be determined. Where the functional currency is different from the Group'sSterling presentational currency, all assets and liabilities of thosesubsidiaries should be converted to Sterling at closing rates on consolidation. Given that the Group's income and expenses are mainly received and incurred inUS$, the majority of the Group's subsidiary undertakings have a US$ functionalcurrency. This includes UK based subsidiaries holding oil and gas explorationand development/producing assets. These subsidiaries are now fully translatedfrom US$ to Sterling at the closing rate at the Balance Sheet date onconsolidation (rather than historic Sterling conversions). In accordance with IAS 21, cumulative exchange differences are now recognised asa separate component within equity. Cairn has taken advantage of the exemptionsoffered under IFRS 1 and deemed cumulative translation differences to be zero at31 December 2003. For the year ending 31 December 2005, Cairn is intending to present itsfinancial results in US$ with the associated accounting policies being updatedaccordingly. f) Taxation Deferred tax liabilities arising from fair value adjustments made in priorbusiness combinations have been recognised on transition to IFRS. Suchliabilities were specifically excluded from recognition under UK GAAP. Thesedeferred tax liabilities are only likely to crystallise on disposal of theassets concerned and will reduce as the carrying values of the underlying assetsare depleted on a unit of production basis. A deferred tax asset has been created as at 31 December 2004 due to the lowernet book values arising under the successful efforts based accounting policy andthe associated recognition requirements under IFRS. g) Share based payments In accordance with IFRS 2, Cairn has recognised a charge for share awards madeto employees under its LTIP and share option plans since 7 November 2002. Thischarge is based on the fair value of these awards. The fair value has beencalculated using a binomial valuation model and is charged to the IncomeStatement over the relevant vesting period, adjusted to reflect actual andexpected levels of vesting. In accordance with IFRS, only awards made after 7November 2002 should be charged through the Income Statement, therefore LTIPcharges relating to awards made prior to this date have been reversed. Shareoptions awarded prior to this date were not previously charged to the IncomeStatement. The reconciling credit of £3.7 million between the UK GAAP and the IFRS IncomeStatement for the year ended 31 December 2004 is a consequence of the differingfair value methodologies of the binomial valuation model used to fair value LTIPawards under IFRS 2 from that previously used to fair value such awards under UKGAAP, the charge relating to share options awarded post 7 November 2002 and thecredit for LTIP charges relating to awards prior to this date. h) Other adjustments 1) Cairn have introduced an accrual of £55,000 at 31 December 2003,increasing to £104,000 at 31 December 2004 relating to employees entitlements toannual leave, as required by IAS 19. 2) Pre-exploration costs of £37,000 have been expensed during 2004 (seenote a) above). 3) The following reclassifications have been made in accordance with IAS 1,which requires separate disclosure of certain assets and liabilities on the faceof the Balance Sheet: • Oil and condensate inventory of £2.3 million at 31 December 2003 and £1.1 million at 31 December 2004 has been reclassified from "trade and other receivables"; • Current taxation liabilities of £5.7 million at 31 December 2003 and £2.9 million at 31 December 2004 have been reclassified from "trade and other payables"; and • Computer software costs previously held as "tangible fixed assets" and within prepayments to "intangible assets" in accordance with IAS 38. 4) In accordance with the Group's revised accounting policy, cash and cashequivalents include only short-term deposits with a maturity of less than threemonths. As a consequence, £8.0 million of long term deposits at 31 December 2004have been reclassified to "bank deposits". i) Cash flow statements The IFRS Cash Flow Statement, prepared under IAS 7, presents cash flows in threecategories; cash flows from operating activities, cash flows from investingactivities and cash flows from financing activities. This is fewer than theprevious seven categories under UK GAAP. Other than the reclassification of cashflow items into the new disclosure categories, there are no significantdifferences between the Group's Cash Flow Statement under UK GAAP and IFRS.Consequently, the revised Cash Flow Statement has not been presented in thisdocument. Glossary of Terms The following are the main terms and abbreviations used in this document:- Corporate Board - the Board of Directors of Cairn Energy PLCCairn - the Company and/or its subsidiaries as appropriateCompany - Cairn Energy PLC (as the context requires)Group - the Company and/or its subsidiaries as appropriate Accounting DD&A - Depletion, Depreciation and AmortisationESOP Trust - Employee Share Ownership Plan TrustIAS 1 - International Accounting Standard 1 "Presentation of Financial Statements"IAS 7 - International Accounting Standard 7 "Cash Flow Statements"IAS 12 - International Accounting Standard 12 "Income Taxes"IAS 19 - International Accounting Standard 19 "Employee Benefits"IAS 21 - International Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates"IAS 36 - International Accounting Standard 36 "Impairment of Assets"IAS 38 - International Accounting Standard 38 "Intangible Assets"IASB the - International Accounting Standards BoardIFRIC the - International Financial Reporting Interpretations CommitteeIFRS - International Financial Reporting StandardsIFRS 1 - International Financial Reporting Standard 1 "First-time Adoption of International Financial Reporting Standards"IFRS 2 - International Financial Reporting Standard 2 "Share Based Payments"IFRS 6 - International Financial Reporting Standard 6 "Exploration for and Evaluation of Mineral Resources"PP&E - Property, Plant and EquipmentLTIP - Long Term Incentive PlanUITF 17 - Urgent Issues Task Force Abstract number 17 "Employee Share Schemes"UITF 38 - Urgent Issues Task Force Abstract number 38 "Accounting for ESOP Trusts"UK GAAP - Generally Accepted Accounting Practise in the United Kingdom This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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