28th Nov 2005 07:01
Homeserve Plc28 November 2005 Transition to International Financial Reporting Standards ('IFRS') Homeserve is today announcing information on its conversion to InternationalFinancial Reporting Standards including the transition adjustments for theopening balance sheet at 1 April 2004, the six months to 30 September 2004, andthe year ended 31 March 2005. During 2002, the European Union (EU) approved an Accounting Regulation requiringall EU listed companies to follow International Financial Reporting Standards('IFRS') in their consolidated financial statements for financial yearscommencing on or after 1 January 2005. In accordance with these requirements,Homeserve will adopt IFRS in its financial statements for the year ending 31March 2006. These financial statements will include comparatives for the yearended 31 March 2005 restated under IFRS. Homeserve plc is required to reportunder IFRS for the first time in its interim results for the six months ended 30September 2005, with comparatives for the six months ended 30 September 2004.The report explains how the Group's previously reported financial performanceand position under UK GAAP are reported under IFRS. This includes, on an IFRSbasis: • the Group's consolidated balance sheet at 1 April 2004, the Group's date of transition to IFRS; • the Group's consolidated balance sheet at 30 September 2004 and 31 March 2005; and • the Group's consolidated income statement for the year ended 31 March 2005 and the six months ended 30 September 2004. There is no change to Homeserve's cash flows under IFRS. Restatements and changes in presentation arise primarily as a result of: • routine goodwill amortisation no longer being charged; • reclassification of certain assets from goodwill to intangible assets; • recognition of all employee benefit related assets and obligations, principally defined benefit pension schemes; • inclusion of a fair value charge in relation to share-based payment; • recognition of dividend liability when approved; • change in recognition of deferred tax; and • reclassification and valuation of operations held for disposal at 1 April 2004 and 30 September 2004. These restatements result in: • an increase of £28.5m in profit for the year ended 31 March 2005 to £7.2m, and an increase in profit of £17.4m for the six months ended 30 September 2004 to £0.1m; and • an increase of £16.6m in net assets at 31 March 2005 to £176.9m; and a £3.0m increase in net assets at 30 September 2004 to £167.9m. The complete report is available on our website www.homeserve.com. 28 November 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
HSV.L