31st Oct 2007 12:35
Falkland Islands Holdings PLC31 October 2007 Falkland Islands Holdings plc Restatement of primary financial information for 2006/7 under InternationalFinancial Reporting Standards CONTENTS 1. Introduction 2. Transitional arrangements 3. Accounting policies 4. Explanation of restatements 5. Impact of adoption of IFRS 6. Restatements 6.1 Consolidated balance sheet at 1 April 2006 (Transition date)6.2 Consolidated balance sheet at 30 September 20066.3 Consolidated balance sheet at 31 March 20076.4 Consolidated income statement for the half-year ended 30 September 20066.5 Consolidated income statement for year ended 31 March 2007 Falkland Islands Holdings plc 1. Introduction Falkland Islands Holdings plc and its subsidiaries ('the Group') has, foraccounting periods up to 31 March 2007, prepared its consolidated financialstatements under UK Generally Accepted Accounting Principles ('UK GAAP'). Thenext annual consolidated financial statements of the Group, for the year ending31 March 2008, are required by AIM rules to be prepared in accordance withInternational Financial Reporting Standards ('IFRS') as adopted by the EuropeanUnion ('adopted IFRS'). The Group's first published results under IFRS will bethe 2007 Interim Report for the six months ended 31 September 2007. The datefor the transition to IFRS was 1 April 2006, being the start of the period ofcomparative information. This announcement explains how the Group's previously reported financialperformance and position under UK GAAP are reported under IFRS. Set out insection 6 is information previously published under UK GAAP as restated underIFRS, as follows: • Reconciliation of consolidated balance sheets previously published under UK GAAP as restated under IFRS as at 1April 2006, 30 September 2006 and 31 March 2007; and • Reconciliation of consolidated profit and loss accounts under UK GAAP to income statements under IFRS for the six months ended 30 September 2006 and the year ended 31 March 2007. Detailed explanations of the adjustments from previously published UK GAAPstatements to the revised IFRS presentation are included in section 4 (below). The financial information in this announcement has been prepared on the basis ofthe recognition and measurement requirements of adopted IFRS as at 30 September2007 that are effective (or available for early adoption) at 31 March 2008, theGroup's first annual reporting date using adopted IFRS. Based on adopted IFRS,the directors have applied the accounting policies set out in section 3 (below),which they expect to apply when the first annual IFRS financial statements areprepared for the year ending 31 March 2008. Adopted IFRS that will be effective(or available for early adoption) at 31 March 2008 are still subject to changeand cannot be determined with certainty at the present time. Accordingly, theaccounting policies for that annual period will only be finally determined whenthe financial statements are prepared for the year ending 31 March 2008. If anysuch changes to accounting policies do occur as a result of new IFRS andinterpretations, the accompanying restated information will be updated. In accordance with IFRS1 ' First-time Adoption of International FinancialReporting Standards' no adjustments have been made for any changes in estimatesmade at the time of approval of the UK GAAP financial statements on which thepreliminary IFRS financial statements are based. The preliminary IFRS financial information set out herein does not constitutethe company's statutory accounts for the year ended 31 March 2007. Thoseaccounts, which were prepared under UK GAAP, have been reported on by thecompany's auditor and delivered to the registrar of companies. The report ofthe auditor was unqualified. 2. Transitional arrangements IFRS 1 "First-time Adoption of International Financial Reporting Standards"establishes the framework for an entity's transition to IFRS, in general bydemanding retrospective restatement of previously presented financial statementsin compliance with adopted IFRS from the start of the earliest comparativeperiod presented in the entity's first IFRS financial statements (i.e.) 1 April2006 for the year ending 31 March 2008. Notwithstanding the general prescription to apply the provisions of individualIFRS to previously presented financial statements, IFRS1 makes available anumber of exemptions to this, and the Group have elected to take advantage ofthe following: Business Combinations (IFRS 3) The Group has elected not to apply IFRS 3 "Business Combinations" to businesscombinations which took place prior to the date of transition to IFRS at 1 April2006. Share-based Payments (IFRS 2) The Group has elected not to apply the recognition and measurement criteria ofIFRS 2 "Share-based Payments" to equity instruments (specifically, shareoptions) that were granted on or before 7 November 2002. This is in keepingwith the exemption available under FRS 20, which the Group elected to take onadoption of that standard for the first time in its accounts for the year ended31 March 2007. Employee Benefits (IAS 19) The Group has elected to recognize all cumulative actuarial gains and losses forthe Group's defined benefit pension schemes at the date of transition as anadjustment to opening retained earnings. This is in keeping with the provisionsof FRS 17, adopted by the Group for the first time for the year ended 31 March2006, which requires actuarial gains and losses to be recognised immediatelythey occur in the Statement of Recognised Gains and Losses, thereby on adoptionrecognising all cumulative gains and losses as an adjustment to retainedearnings. 3. Significant accounting policies Falkland Islands Holdings plc (the "Company") is a company incorporated anddomiciled in the United Kingdom. Its shares are traded on AIM, a marketoperated by the London Stock Exchange. First reporting under International Financial Reporting Standards On 1 April 2007 the Company adopted International Financial Reporting Standards("adopted IFRS"), as endorsed by the European Union. The financial informationhas been prepared on a consistent basis under applicable adopted IFRS and theeffects of this transition reported in accordance with "IFRS1: First-timeAdoption of IFRS". IFRS1 permits companies adopting IFRS for the first time to take exemptions fromthe full requirements of IFRS in the transition period. The following are theGroup's significant accounting policy choices arising from IFRS1: • Business combinations prior to 1 April 2006 have not been restated to comply with "IFRS 3: Business Combinations"; and• Share-based payment awards on or before 7 November 2002 have not been re-measured in accordance with "IFRS2: Share-based payments." (a) Basis of preparation The financial statements are presented in pounds sterling, rounded to thenearest thousand. They are prepared on the historical cost basis except thatavailable-for-sale financial instruments are stated at their fair value. The accounting policies set out below have been applied consistently inpreparing the opening IFRS balance sheet at 1 April 2006 and to all periodspresented in this IFRS restatement. (b) Basis of consolidation The consolidated financial statements comprise the financial statements ofFalkland Islands Holdings plc and its subsidiaries (the "Group"). A subsidiaryis any entity Falkland Islands Holdings plc has the power to control thefinancial and operating policies of so as to obtain benefits from itsactivities. The financial statements of subsidiaries are prepared for the samereporting period as the parent company, using consistent accounting policies. Subsidiaries are consolidated from the date on which control is transferred tothe Group and cease to be consolidated from the date on which control istransferred out of the Group. All intra-company balances and transactions, including unrealised profitsarising from intra-group transactions, are eliminated in full in preparing theconsolidated financial statements. Unrealised losses are eliminated but only tothe extent that there is no evidence of impairment. (c) Foreign currencies Transactions in foreign currencies are translated to the functional currenciesof group entities at exchange rates ruling at the dates of the transactions.Monetary assets and liabilities denominated in foreign currencies areretranslated to the functional currency using the relevant rates of exchangeruling at the balance sheet date and the gains or losses thereon are included inthe income statement. Non-monetary assets and liabilities are translated using the exchange rate atthe date of the initial transaction. (d) Property, plant & equipment Property, plant and equipment are measured at cost less accumulated depreciationand impairment losses. Cost comprises purchase price and directly attributableexpenses. Depreciation is charged to the income statement on a straight-linebasis over the estimated useful lives of each part of an item of property, plantand equipment. The estimated useful lives are as follows: Freehold buildings 2 - 5%Long leasehold land and buildings 2%Vehicles, plant and equipment 10 - 25%Ships 3.3% Freehold land is not depreciated. The carrying value of assets and their useful lives are reviewed, and adjustedif appropriate, at each balance sheet date. If an indication of impairmentexists, the assets are written down to their recoverable amount and theimpairment is charged to the income statement in the period in which it arises. (e) Investment properties Investment properties are properties held either to earn rental income or forcapital appreciation or for both. Investment properties are stated at cost lessany accumulated depreciation (in line with accounting policy (d) above) and anyimpairment losses. (f) Intangible assets Goodwill Goodwill arises on the acquisition of subsidiaries. Acquisitions prior to 1 April 2006 In respect to acquisitions prior to transition to IFRS, goodwill is recorded onthe basis of deemed cost, which represents the amount recorded under previousGAAP. The classification and accounting treatment of business combinationswhich occurred prior to transition has not been reconsidered in preparing theGroup's opening IFRS balance sheet at 1 April 2006. Acquisitions on or after 1 April 2006 Goodwill on acquisition is initially measured at cost, being the excess of thecost of the business combination over the acquirer's interest in the fair valueof the identifiable assets, liabilities and contingent liabilities of theacquired business. Following initial recognition, goodwill is measured at costless any accumulated impairment losses. Goodwill is not amortized but reviewedfor impairment annually or more frequently if events or changes in circumstancesindicate that the carrying value may be impaired. Computer software Acquired computer software is capitalised as an intangible asset on the basis ofthe cost incurred to acquire and bring the specific software into use.Amortisation is charged to the income statement on a straight-line basis overthe estimated useful lives of intangible assets from the date that they areavailable for use. The estimated useful life of computer software is fiveyears. (g) Impairment of non-financial assets At each reporting date the Group assesses whether there is any indication thatan asset may be impaired. Where an indicator of impairment exists or the assetrequires annual impairment testing, the Group makes a formal estimate of therecoverable amount. Where the carrying amount of an asset exceeds itsrecoverable amount the asset is considered impaired and is written down to itsrecoverable amount. Recoverable amount is the greater of an asset's or cash-generating unit's fairvalue less cost to sell or value in use. It is determined for an individualasset, unless the asset's value in use cannot be estimated to be close to itsfair value less costs to sell and it does not generate cash inflows that arelargely independent of those from other assets or groups of assets, in whichcase, the recoverable amount is determined for the cash-generating unit to whichthe asset belongs. In assessing value in use, the estimated future cash flows are discounted totheir present value using a pre-tax discount rate that reflects current marketassessments of the time value of money and risks specific to the asset. An impairment loss with respect of goodwill is not reversed. In respect ofother assets, impairment losses are reversed if there has been a change in theestimates used to determine the recoverable amount. An impairment loss isreversed only to the extent that the asset's carrying amount does not exceed thecarrying amount that would have been determined, net of depreciation oramortisation, if no impairment loss had been recognised. (h) Financing costs Net financing costs comprise of interest payable, interest receivable, andforeign exchange gains and losses that are recognised in the income statement. Interest income and interest payable is recognised as a profit or loss as itaccrues, using the effective interest method. (i) Financial instruments Certain financial instruments held by the Group are classified as beingavailable-for-sale and are stated at fair value, with any resultant gain or lossbeing recognised directly in equity, except for impairment losses. When theseitems are derecognised, the cumulative gain or loss previously recogniseddirectly in equity is recognised in profit and loss. The fair value of financial instruments classified as available for sale istheir quoted bid price at the balance sheet date. (j) Employee share awards The Group provides benefits to certain employees (including Directors) in theform of share-based payment transactions, whereby the employee renders servicein return for shares or rights over future shares ("equity settled transactions"). The cost of these equity settled transactions with employees is measured byreference to an estimate of their fair value at the date on which they weregranted using an option input pricing model taking into account the terms andconditions upon which the options were granted. The amount recognised as anexpense is adjusted to reflect the actual number of share options that vestexcept where forfeiture is only due to share prices not achieving the thresholdfor vesting. The cost of equity settled transactions is recognised, together with acorresponding increase in reserves, over the period in which the performanceconditions are fulfilled, ending on the date that the option vests. (k) Inventories Inventories are stated at the lower of cost and net realisable value. Netrealisable value is estimated as selling price in the ordinary course ofbusiness less costs of disposal. The cost of stock is based on the first-infirst-out principle and comprises purchase price and where applicable includesexpenditure incurred in transportation to the Falkland Islands. (l) Revenue Revenue is the amount receivable by the Group for goods supplied and servicesrendered excluding VAT. Revenue principally arises from retail sales and theprovision of ferry services, but also includes hotel takings, insurancecommissions, revenues billed for shipping and agency activities and portservices, in the Falkland Islands. Revenue from sale of goods is recognised atthe point of sale or dispatch, whilst that of the ferry and other services isrecognised when the service is provided. (m) Pensions Defined contribution pension schemes The Group operates two defined contribution schemes. The assets of the schemesare held separately from those of the Group in independently administered funds.The amount charged to the income statement represents the contributionspayable to the schemes in respect to the accounting period. Defined benefit pension schemes The Group also operates two pension schemes providing benefits based on finalpensionable pay, one of which is unfunded. The assets of the funded scheme areheld separately from those of the Group. The Group's net obligation in respect of each defined benefit pension plan iscalculated by estimating the amount of future benefit that employees have earnedin return for their service in the current and prior periods; that benefit isdiscounted to its present value; and any unrecognised past service costs and thefair value of the plan assets (at bid price) are deducted. The liabilitydiscount rate is the yield at the balance sheet date on AA credit-rated bondsthat have maturity dates approximating the terms of the Group's obligations.The calculation is performed by a qualified actuary using the projected unitcredit method. When the calculation results in a benefit to the Group, theasset recognised is limited to the net total of any unrecognised past servicecosts and the present value of any future refunds from the plan or reductions infuture contributions to the plan. Actuarial gains and losses are recognised in full in the period in which theyarise in the statement of recognised income and expense. (n) Trade receivables Trade receivables are carried at original invoice amount less an allowance forany uncollectible amounts. An estimate for doubtful debts is made whencollection of the full amount is no longer probable on an item by item basis. (o) Trade and other payables Trade and other payables are stated at their cost less payments made. (p) Dividends on funds presented within shareholders' funds Dividends unpaid at the balance sheet date are only recognised as liabilities atthat date to the extent that they are appropriately authorized and are no longerat the discretion of the Company. (q) Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise cash balances and calldeposits with an original maturity of three months or less. Bank overdraftsthat are repayable on demand and form an integral part of the Group's cashmanagement are included as a component of cash and cash equivalents for thepurpose of the statement of cash flows. (r) Income tax Income tax on the profit or loss for the year comprises current and deferredtax. Income tax is recognised in the income statement, except to the extentthat it relates to items recognised directly in equity, in which case it isrecognised directly in equity. Current tax is the expected tax payable on the taxable income for the year,using tax rates enacted, or substantively enacted at the balance sheet date, andany adjustment to tax payable in respect of previous years. Deferred tax is provided using the balance sheet method, providing for temporarydifferences between the carrying amounts of assets and liabilities for financialreporting purposes and the amounts used for taxation purposes. The followingtemporary timing differences are not recognised: • Goodwill not deductible for tax purposes;• Initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits; and A deferred tax asset is recognised to the extent that it is probable that futuretaxable profits will be available against which the temporary differences can beutilized. Deferred tax assets are reviewed at each reporting date and arereduced to the extent that it is no longer probable that the related tax benefitwill be realized. Deferred tax is recognised at the tax rates that are expected to be applied tothe temporary differences when they reverse, based on rates that have beenenacted or substantially enacted by the reporting date. (s) Leased assets Leases in which the Group assumes substantially all the risks and rewards ofownership are classified as finance leases. All other leases are classified asoperating leases. As lessee Rentals in respect of all operating leases are charged to the income statementon a straight line basis over the lease term. As lessor Assets under hire purchase agreements are shown in the balance sheet undercurrent assets, to the extent they are due within one year and under non-currentassets, to the extent that they are due after more than one year, and are statedat the value of the net investment in the agreements. The income from suchagreements is credited to the income statement each year so as to give aconstant rate of return on the funds invested. Assets held for leasing out under operating leases are included in investmentproperty (where they constitute land and buildings) or in stock (where they donot constitute land and buildings) at cost less accumulated depreciation andimpairment losses. Rental income is recognised on a straight-line basis. Leaseincentives granted are recognised as an integral part of the total rentalincome. (t) Non-current assets held for sale and discontinued operations Non-current assets and discontinued operations are classified as held for salewhen their carrying values will be recovered principally through sale. They aregenerally measured at the lower of carrying amount and fair value less costs tosell. (u) Provisions Provisions are recognised in the balance sheet when the Group has a presentlegal or constructive obligation as a result of a past event, and it is probablethat an outflow of economic benefits will be required to settle the obligationand a reliable estimate can be made of the amount of the obligation. If theeffect is material, provisions are determined by discounting the expected cashflows at an appropriate pre-tax risk free rate. 4. Explanation of transition to IFRS The following explanations are offered to accompany the restatements presentedat section 6 (below): IAS 39 "Financial instruments: recognition and measurement Under the terms of IAS 39 "Financial Instruments: Recognition and Measurement"the Group's investments in FOGL and FGML at the transition date are deemed to be'available-for-sale' financial assets. Under IFRS available-for-sale financialinstruments are stated at fair value, with any resultant gain or loss beingrecognised directly in equity, except for impairment losses. When these itemsare derecognised, the cumulative gain or loss previously recognised directly inequity is recognised in profit and loss. The fair value of financial instruments classified as available for sale istheir quoted bid price at the balance sheet date. The following table sets out the relevant fair values of the Group's holdings atUK GAAP cost and IFRS transition date fair value and hence the revaluationadjustment required for each restated balance sheet presented: IAS 39 restatements Consolidated balance sheet as at: 1 April 30 September 2006 31 March 2007 2006 £'000Investments in FGML and FOGL at UK GAAP cost 2,610 2,610 2,420Investments in FGML and FOGL at IFRS fair value 23,269 13,650 12,900Revaluation made 20,659 11,040 10,480Share price:FGML 15.50p 8.00p -FOGL 143.50p 85.00p 86.00pShareholding:FGML 11,250,000 11,250,000 -FOGL 15,000,000 15,000,000 15,000,000 The Group's holding in FGML was sold on 12 January 2007 and as a result theasset de-recognised. On de-recognition IAS39 requires the balance on therevaluation reserve relating to the asset to be transferred to the profit andloss account. There is no impact on the gain on disposal recognised previouslyunder UK GAAP from IFRS adoption, and accordingly no impact on the profit andloss account for the period. IAS 19 "Employee Benefits" As discussed in section 2, the Group has elected to recognize all cumulativeactuarial gains and losses as an adjustment to opening retained earnings ontransition in keeping with FRS17, adopted under UK GAAP for the first time forthe year ending 31 March 2006. However, whereas previously under UK GAAP the liability as regards definedbenefit plans was recognised net of its related deferred tax asset, under IAS19"Employee Benefits", the gross liability is to be shown on the face of thebalance sheet. In addition, IAS12 "Income Taxes" requires deferred tax assetsand liabilities to be separately categorized on the balance sheet as non-currentitems. IAS 19 Reclassifications Consolidated balance sheet as at: 1 April 30 September 2006 31 March 2007 2006 £'000Net pension liability reported under UK GAAP 1,909 1,918 1,869Deferred tax asset reclassified 669 671 648Gross pension liability disclosed under IFRS 2,578 2,589 2,517 IAS 19 also requires companies to provide for holiday pay based on the number ofdays leave at each reporting date that employees are entitled to but have notused, and that can be used (or paid) in future periods. The holiday pay accrualrequired was £32,000 at 1 April 2006 and £49,000 at both 30 September 2006 and31 March 2007. IAS 38 "Intangible Assets" Under IAS38 "Intangible Assets" and IFRS3 "Business Combinations" goodwillarising as a result of a business combination is recognised at cost andcapitalized, but is not subject to amortisation, as was previously the caseunder UK GAAP. Instead, the carrying value of such goodwill is reviewed atleast annually for impairment. An adjustment is therefore required to reverse the goodwill amortisation chargesfor the six months ended 30 September 2006 and the year ended 31 March 2007.The following table provides an analysis of the charges reversed and therestated carrying value of goodwill at each restated balance sheet date: IAS 38 restatements Consolidated balance sheet as at: 1 April 30 September 2006 31 March 2007 2006 £'000Goodwill stated at UK GAAP amortised cost 3,979 3,877 3,775Reversal of goodwill amortisation - 102 204Goodwill restated for IFRS 3,979 3,979 3,979 5. Impact of adoption of IFRS The following tables present summaries of the impact of the adoption of IFRS ateach of the restated balance sheet dates on the reported net assets of theGroup, and on reported profits on ordinary activities after tax for the sixmonths ended 30 September 2006 and the year ended 31 December 2007: Summary of IFRS impact on reported net assets Consolidated balance sheet as at: 1 April 30 September 2006 31 March 2007 2006 £'000Net assets as previously reported under UK GAAP 12,852 13,385 14,136Add: Restatement of investments to fair value 20,659 11,040 10,480Add: Write-back of goodwill amortisation - 102 204Less: Accrual for holiday pay (32) (49) (49)Net assets as restated under adopted IFRS 33,479 24,478 24,771 Summary of IFRS impact on reported profit after tax Consolidated income statement for: 6 months to Year ended 30 September 2006 31 March 2007 £'000Net assets as previously reported under UK GAAP 341 1,446Add: Write-back of goodwill amortization 102 204Less: Accrual for holiday pay (17) (17)Profit after tax as restated under adopted IFRS 426 1,633 6.1 Restatement: Consolidated Balance Sheet as at 1 April 2006 (transition date) Falkand Islands Holdings GroupIFRS Opening Consolidated Balance Sheet As at 1 April As at 1 April 2006 Reclassification As at 1 April 2006 IFRS adjustments 2006 UK GAAP (as published) for IFRS format UK GAAP (IFRS format) IAS 39 IAS 19 IFRS balance sheet £'000 £'000 £'000 £'000 £'000 £'000Fixed assets Non-current assetsIntangible assets 3,979 Intangible assets 3,979 3,979Tangible assets 8,042 (1,620) Property, plant and 6,422 6,422 equipment 1,620 Investment properties 1,620 1,620Investments 2,610 Financial assets 2,610 20,659 23,269 48 Other financial assets 48 48 (1) Deferred tax assets 0 669 669 14,631 Total non-current assets 14,679 36,007 Current assets Current assetsStocks 3,107 Inventories 3,107 3,107Debtors due within 1,789 (142) Trade and other 1,647 1,647one year receivables 46 Income tax receivable 46 46 96 Other financial assets 96 96Debtors due after one 48 (48) 0 0yearCash at bank and 3,601 Cash and cash 3,601 3,601on-hand equivalents 8,545 Total current assets 8,497 8,497 TOTAL ASSETS 23,176 44,504 Creditors: amounts (4,797) 4,797 Current liabilitiesfalling due within 1year (542) Interest bearing loans (542) (542) and borrowings (424) Income tax payable (424) (424) (3,831) Trade and other payables (3,831) (32) (3,863) Total current (4,797) (4,829) liabilities Net current assets 3,748 Total assets less 18,379current liabilities Non-current liabilitiesCreditors due after (2,765) Interest bearing loans (2,765) (2,765)one year and borrowings (1,909) Pension liabilities (1,909) (669) (2,578)Provision for (853) Deferred tax liabilities (853) (853)liabilities Total non-current (5,527) (6,196) liabilities Net assets excluding 14,761 TOTAL LIABILITIES (10,324) (11,025)pension liabilities Net pension scheme (1,909) 1,909liabilities Net assets 12,852 0 Net assets 12,852 20,659 (32) 33,479 Capital and reserves Capital and reservesCalled up share 838 Called up share capital 838 838capitalShare premium account 7,064 Share premium account 7,064 7,064Other reserves 703 Other reserves 703 703Revenue reserves 4,247 Retained earnings 4,247 (32) 4,215 Available-for-sale financial assets fair value revaluation 0 20,659 20,659 reserve Equity shareholders' 12,852 0 Equity shareholders' 12,852 20,659 (32) 33,479funds funds (1) Comprise hire purchase receivables due after more than one year. 6.2 Restatement: Consolidated balance sheet as at 30 September 2006 Falkland Islands Holdings GroupIFRS Half-year Consolidated Balance Sheet As at 30 As at 30 September 2006 Reclassifications As at 30 September 2006 IFRS adjustments September 2006 UK GAAP (as published) for IFRS format UK GAAP (IFRS format) IAS IFRS IAS IFRS balance sheet 39 3 19 £'000 £'000 £'000 £'000 £'000 £'000 £'000Fixed assets Non-current assetsIntangible assets 3,877 Intangible assets 3,877 102 3,979Tangible assets 7,929 (1,604) Property, plant and 6,325 6,325 equipment 1,604 Investment properties 1,604 1,604Investments 2,610 Financial assets 2,610 11,040 13,650 46 Other financial assets 46 46 (1) Deferred tax assets 0 671 671 14,416 Total non-current 14,462 26,275 assets Current assets Current assetsStocks 2,751 Inventories 2,751 2,751Debtors due within 1,466 (138) Trade and other 1,328 1,328one year receivablesDebtors due after Income tax receivable 0 0one year 92 Other financial assets 92 92Cash at bank and 4,160 Cash and cash 4,160 4,160on-hand equivalents 8,377 Total current assets 8,331 8,331 TOTAL ASSETS 22,793 34,606 Creditors: Amounts (3,442) 3,442 Current liabilitiesdue within oneyear (499) Interest bearing loans (499) (499) and borrowings (520) Income tax payable (520) (520) (2,423) Trade and other (2,423) (49) (2,472) payables Total current (3,442) (3,491) liabilities Net current assets 4,935 Total assets less 19,351currentliabilities Non-current liabilitiesCreditors due (3,193) Interest bearing loans (3,193) (3,193)after one year and liabilities (1,918) Pension liabilities (1,918) (671) (2,589)Provision for (855) Deferred tax (855) (855)liabilities liabilities Total non-current (5,966) liabilitiesNet assets 15,303 (6,637)excluding pensionliabilities Net pension scheme (1,918) 1,918 TOTAL LIABILITIES (9,408) (10,128)liabilities Net assets 13,385 0 Net assets 13,385 11,040 102 (49) 24,478 Capital and Capital and reservesreservesCalled up share 847 Called up share 847 847capital capitalShare premium 7,207 Share premium account 7,207 7,207accountOther reserves 703 Other reserves 703 703Revenue reserves 4,628 Retained earnings 4,628 102 (49) 4,681 Available-for-sale financial assets fair value revaluation 0 11,040 11,040 reserve Equity 13,385 0 Equity shareholders' 13,385 11,040 102 (49) 24,478shareholders' fundsfunds (1) Comprise hire purchase receivables due after more than one year. 6.3 Restatement: Consolidated Balance Sheet as at 31 March 2007 Falkland Islands Holdings GroupIFRS Transition Consolidated Year-end Balance Sheet As at 31 March As at 31 March 2007 Reclassifications As at 31 March 2007 IFRS adjustments 2007 UK GAAP (as published) for IFRS format UK GAAP (IFRS format) IAS 39 IFRS 3 IAS 19 IFRS balance sheet £'000 £'000 £'000 £'000 £'000 £'000 £'000Fixed assets Non-current assetsIntangible assets 3,775 Intangible assets 3,775 204 3,979Tangible assets 7,856 (1,588) Property, plant & 6,268 6,268 equipment 1,588 Investment properties 1,588 1,588Investments 2,420 Financial assets 2,420 10,480 12,900 45 Other financial 45 45 assets(1) Deferred tax assets 0 648 648 14,051 Total non-current 14,096 25,428 assets Current assets Current assetsStocks 2,678 Inventories 2,678 2,678Debtors due 2,517 (133) Trade and other 2,384 2,384within one year receivables Income tax receivable 0 0 133 Other financial 133 133 assetsDebtors due after 45 (45) 0one yearCash at bank and 4,959 Cash and cash 4,959 4,959on-hand equivalents 10,199 Total current assets 10,154 10,154Creditors TOTAL ASSETS 24,250 35,582 Amounts due (5,310) 5,310 Current liabilitieswithin one year (542) Interest bearing (542) (542) loans and borrowings (570) Income tax payable (570) (570) (4,198) Trade and other (4,198) (49) (4,247) payables Total current (5,310) (5,359) liabilities Net current 4,889assets Total assets less 18,940currentliabilities Non-current liabilitiesCreditors due (2,191) Interest bearing (2,191) (2,191)after one year loans and borrowings (1,869) Pension liabilities (1,869) (648) (2,517)Provision for (744) Deferred tax (744) (744)liabilities liabilitiesNet assets 16,005excluding pensionliabilities Total non-current (4,804) (5,452) liabilitiesNet pension (1,869) 1,869schemeliabilities TOTAL LIABILITIES (10,114) (10,811) Net assets 14,136 0 Net assets 14,136 10,480 204 (49) 24,771 Capital and Capital and reservesreservesCalled up share 847 Called up share 847 847capital capitalShare premium 7,206 Share premium account 7,206 7,206accountOther reserves 703 Other reserves 703 703Revenue reserves 5,380 Retained earnings 5,380 204 (49) 5,535 Available-for-sale financial assets fair value 0 10,480 10,480 revaluation reserve Equity 14,136 0 Equity shareholders' 14,136 10,480 204 (49) 24,771shareholders' fundsfunds (1) Comprise hire purchase receivables due after more than one year. 6.4 Restatement: Consolidated Income Statement for the six months ended 30 September 2006 Consolidated Income Statement: six IFRS Transition Restated HY P&L Comparativesmonths ended 30 September 2007 UK GAAP (in IFRS format)) IFRS (as restated) 30 September 2006 IAS 38 IAS 19 30 September 2006 £'000 £'000 £'000 £'000 Revenue 7,285 7,285 Cost of sales (4,521) (4,521) Gross profit 2,764 2,764 Administrative expenses (2,167) (17) (2,184)Other operating income 124 124Goodwill amortisation (102) 102 Operating profit before financing 619 704costs Financing income 103 103Financing expense (121) (121)Pension scheme net financing cost (52) (52)Net financing costs (70) (70) Profit before tax 549 634 Taxation (208) (208) Profit on ordinary activities after 341 102 (17) 426tax 6.5 Restatement: Consolidated Income Statement for the year ended 31 March 2007 Consolidated Income Statement: year IFRS Transition Restated FY P&L Comparativesended 31 March 2007 UK GAAP IFRS (in IFRS format) (as restated) 31 March 2007 IAS 38 IAS 19 31 March 2007 £'000 £'000 £'000 £'000 Revenue 15,618 15,618 Cost of sales (9,531) (9,531) Gross profit 6,087 6,087 Pension scheme restructuring costs (105) (105)Other administrative expenses (4,606) (17) (4,623)Administrative expenses (4,711) (4,728)Other operating income 338 338Goodwill amortisation (204) 204 Operating profit before financing 1,510 1,697costs Financing income 205 205Profit on disposal of financial 485 485investmentFinancing expense (236) (236)Pension scheme net financing cost (124) (124)Net financing costs 330 330 Profit before tax 1,840 2,027 Taxation (394) (394) Profit on ordinary activities after 1,446 204 (17) 1,633tax This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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