20th Dec 2005 07:01
Park Group PLC20 December 2005 Embargoed until 7am 20 December 2005 PARK GROUP PLC ("Park" or "the Group") TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS CONTENTS SECTION 1 - TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS SECTION 2 - ACCOUNTING POLICIES SECTION 3 - PRINCIPAL DIFFERENCES BETWEEN UK GAAP AND IFRS WHICH AFFECT THE GROUP SECTION 4 - RECONCILIATION OF UK GAAP TO IFRS SECTION 1 - TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS Introduction In order to facilitate the understanding of the impact that InternationalFinancial Reporting Standards (IFRS) will have on the financial statements ofthe group, this document contains reconciliations of the group's balance sheetand income statement for the interim period to 30 September 2004 and for thefull year to 31 March 2005 together with the transition balance sheet as at 1April 2004. This document also provides information on changes to the group's accountingpolicies following the adoption of IFRS. In summary the impact of adopting IFRS on the accounts for the year ended 31March 2005 is as follows: Impact on Income Statement (Continuing Operations) --------------------------------------------------------------------- £'000UKGAAP Profit before tax 6,343 Loans - impact of income recognition and impairment provisioning (6,562)Advertising and promotional costs expensed as incurred (456)Employee benefits - pension scheme (40)Employee benefits - fair value of share based payments (48)Reversal of goodwill amortisation 169Change in depreciation on re-valued assets (67) ------IFRS Loss before tax (661)Taxation 201 ------IFRS Loss after tax (460)--------------------------------------------------------------------- Impact on net liabilities --------------------------------------------------------------------- £'000 UKGAAP Net liabilities (2,719) Loans - impact of income recognition and impairment provisioning (18,334)Advertising and promotional costs expensed as incurred (3,328)Employee benefits - pension scheme (1,623)Goodwill amortisation not required 169Reversal of proposed dividends 1,215Taxation 6,674Revaluation of property, plant and equipment 1,033Revaluation of property held for resale 461Revaluation of investment property 129 ------ IFRS Net liabilities (16,323) --------------------------------------------------------------------- SECTION 2 - ACCOUNTING POLICIES (A) Basis of preparationFrom 1 April 2005, the group is required to prepare its annual and interimconsolidated financial statements in accordance with International FinancialReporting Standards (IFRS) as adopted by the European Union and implemented inthe UK. The date of transition to IFRS for the group was 1 April 2004 and thegroup has prepared its opening IFRS balance sheet as at that date. These accounting policies have been based on the current standards andinterpretations expected to be effective at 31 March 2006. In particular thegroup has adopted early the December 2004 amendment to IAS 19, EmployeeBenefits. However, the IFRS and International Financial ReportingInterpretations Committee (IFRIC) interpretations that will be applicable as at31 March 2006, including those that will be applicable on an optional basis, arenot yet known with certainty at the time of preparing this report. It istherefore possible that further interpretations might arise which could lead tofurther changes in the financial information and accounting policies. Reconciliations and explanations of the effect of adopting IFRS compliantaccounting policies on the group's equity (net assets) and profits are providedlater in this document. A summary of the significant group accounting policies is set out below and anexplanation of the principal changes from UK Generally Accepted AccountingPractice (UK GAAP) is set out later in this document. The preparation of financial statements in conformity with generally acceptedaccounting principles requires the use of estimates and assumptions that affectthe reported amounts of assets and liabilities at the date of the financialstatements and the reported amounts of revenues and expenses during thereporting period. Although these estimates are based on management's bestknowledge of the amount, event or actions, actual results ultimately may differfrom those estimates. (B) Basis of consolidationThe group accounts consolidate the accounts of the company and its subsidiaryundertakings up to the relevant period end. Inter-group sales and profits areeliminated on consolidation. The acquisition method of accounting has been adopted to account for theacquisition of subsidiaries. Under this method the results of subsidiaryundertakings acquired or disposed of in the year are included in the profit andloss account from the date of acquisition or up to the date of disposal. (C) First time adoptionApplicationIn accordance with IFRS 1, 'First Time Adoption of International FinancialReporting Standards', the group is entitled to a number of exemptions from fullrestatement. The main exemptions that have been adopted by the group are asfollows: Business combinationsAcquisitions of subsidiaries prior to 1 April 2004 have not been restated tocomply with IFRS 3 'Business Combinations'. Freehold and long leasehold propertiesThe group has elected to use revaluations as deemed cost at 1 April 2004. Pensions and other post-retirement benefitsAll cumulative actuarial gains and losses with respect to the group's definedbenefit pension scheme have been recognised in shareholders' equity at 1 April2004. Share-based paymentsIFRS 2 'Share-based Payments' has not been applied to equity-based employeecompensation schemes in respect of awards granted before 7 November 2002. PresentationThe IFRS reconciliations included in the appendix to this announcement have beenpresented in all material respects in accordance with IAS 1 'Presentation ofFinancial Statements'. The main difference from the information as presentedunder UK GAAP is that all assets and liabilities on the balance sheet aredisclosed as being either current or non-current in nature. Under UK GAAP exceptional items which satisfied the criteria set out inparagraph 20 of FRS 3 'Reporting Financial Performance' should be shownseparately after operating profit. No such distinction is permitted under IFRSand consequently all such items have been reclassified and are now includedwithin operating profit /(loss). (D) Income recognitionCash LendingIFRS requires the customers' accounts receivable balance to be classified as'loans and receivables' and for these balances to be held at amortised costusing the effective interest method. This method allocates the interest incomearising from a loan over its expected life, or contractual life if shorter. Theeffective interest rate (EIR) is the rate that exactly discounts estimatedfuture cash flow payments or receipts through the expected life of the loan toits net carrying amount. When calculating the EIR, all cash flows arising fromthe contractual terms of the loan, such as early settlement options, need to beconsidered. The EIR calculation includes all direct and incremental fees and costs. Anyacceptance fees or commissions earned on the sale of payment protectioninsurance are included in the EIR calculation and are effectively recognisedover the expected term of the loan. The application of the EIR method has the effect of recognising income to give aconstant rate of return on the amount outstanding from the customer over theperiod of the loan. IAS39 requires that income continues to be recognised on an outstanding loanbalance at the original EIR, irrespective of whether or not this interest caneither be charged to the customer under the terms of the loan agreement or evenshould be charged, if a customer is encountering serious repayment difficulties.The additional interest is calculated only during the original term of the loanproduct and a corresponding impairment charge is made. The impact on profit iszero, but the revenue and impairment lines are effectively 'grossed-up' by thesame amount. Cash SavingsTurnover is based on values invoiced to external customers for goods andservices and is recorded net of value added tax, rebates and discounts aftereliminating inter-group sales. Turnover is recognised when a group entity has fulfilled its contractualobligations to a customer and has obtained the right to receive consideration.This is usually on despatch but is dependent upon the contractual terms thathave been agreed with the customer. (E) GoodwillGoodwill arising on acquisition represents the difference between theconsideration and the fair value of net assets acquired, which arises ontransactions after 1 April 1998. Goodwill is not amortised, but is reviewedannually for impairment and whenever events or changes in circumstances indicatethat the carrying value of the goodwill may not be receivable. Goodwill iscarried in the balance sheet at amortised cost at 1 April 2004 less accumulatedimpairment losses. An impairment loss is recognised to the extent that the carrying amount of thefixed asset exceeds its recoverable amount. The recoverable amount is the higherof an assets fair value less costs to sell and its value in use. Value in use iscalculated using cash flows derived from budgets and projections approved by theBoard which are discounted at the group's risk adjusted weighted cost of capitalcalculated from equity market data and borrowing rates. For the purpose ofimpairment testing, goodwill is allocated to cash generating units (CGUs). EachCGU is consistent with the group's primary reporting segments. Any impairment isrecognised immediately through the income statement and is not subsequentlyreversed. (F) Intangible assetsComputer softwareAcquired software licenses are capitalised as intangible assets and will beamortised on a straight line basis over the expected useful economic life. Costs that are directly associated with the creation of identifiable software,which meet the development asset recognition criteria as laid out in IAS 38'Intangible Assets', are recognised as intangible assets. Direct costs includethe employment costs of internal software developers and external consultancyfees. All other software development and maintenance costs are recognised as anexpense as incurred. Computer software development costs recognised as assets are amortised overtheir estimated useful lives on a systematic straight line basis. (G) Investment propertyProperties are classified as investment properties where they are held by thegroup to earn rentals or for capital appreciation. Investment properties arecarried at cost and are depreciated through the profit and loss account over 50years on a straight line basis so as to spread the difference between the costand residual value over the anticipated useful life of properties. Theproperties' residual values are reviewed, and adjusted if appropriate, at eachbalance sheet date. A property's carrying amount is written down immediately toits recoverable amount if its carrying value is greater then its recoverableamount. (H) Property, plant and equipmentProperty, plant and equipment is stated at cost less accumulated depreciation.Cost represents expenditure that is directly attributable to the purchase of theasset. Certain land and buildings are held at previous revalued amounts lessaccumulated depreciation as these amounts have been taken as their deemed costas at the date of transition to IFRS in accordance with the exemption under IFRS1 'First-time Adoption of IFRS'. Depreciation is charged on a straight line basis spreading the differencebetween cost and residual value over the anticipated useful life of assets asfollows: Freehold land Nil Freehold buildings 2 - 2.5% Short leasehold over unexpired term of lease Fixtures and equipment 10% - 20% Motor vehicles 25% The assets' residual values are reviewed, and adjusted if appropriate, at eachbalance sheet date. An asset's carrying value is written down immediately to itsrecoverable amount if its carrying value is greater than its recoverable amount. (I) Loans and receivablesLoans and receivables include the aggregate amounts outstanding under HomeCollected Credit (HCC) agreements. These are carried in the balance sheet atamortised cost using the effective interest method. If it becomes evident that a loan needs to be impaired the amount of theimpairment provision is measured as the difference between the loan's carryingamount on the balance sheet and the present value of the estimated future cashflows discounted by the loan's original effective interest rate. (J) InventoriesInventories are stated at the lower of cost and net realisable value. Cost isdetermined by the 'first in first out' method and is based on purchase price.Finished goods stock and work in progress includes attributable productionoverheads. Net realisable value is based on estimated selling price less cost ofdisposal having regard to the age, saleability and condition of the inventory. (K) Trade and other receivablesTrade receivablesTrade receivables are recognised initially at the amount receivable andsubsequently reduced by any provision for impairment. A provision for impairmentis established when there is objective evidence that the group will not be ableto collect all amounts due. PrepaymentsPromotional expenditure incurred at the accounting date relating to thefollowing season's sales, in relation to catalogue costs and agents' stationery,is carried forward as prepaid expenditure and charged against the next year'sincome. Television advertising and other advertising expenditure is expensed asincurred in accordance with IAS38. (L) Cash and cash equivalentsFor the purposes of the cash flow statement, cash and cash equivalents includescash in hand, deposits held with banks with original maturities of three monthsor less and bank overdrafts. Bank overdrafts are shown within borrowings incurrent liabilities in the balance sheet. Cash balances and overdrafts areoffset where the group has the ability and intention to settle these balances ona net basis. (M) Non current assets available for saleNon current assets held for disposal are carried in current assets at the lowerof their previous balance sheet carrying value and the expected disposalproceeds. These assets are not depreciated. (N) Trade and other payablesUnredeemed vouchersUnredeemed vouchers are included in trade creditors at their fair value at thedate of initial recognition. This comprises the anticipated amounts payable toretailers on redemption, after applying an appropriate discount rate to takeinto account the expected timing of payments and after excluding the value ofvouchers which it is estimated will never be presented for redemption. (O) Employee benefitsRetirement benefit obligationThe group has both a defined benefit and a number of defined contributionpension plans. The assets of the defined benefit pension plan are held in aseparate trustee administered fund. The present value of the defined benefit obligation less the fair value of theplan assets is recognised in the balance sheet as the retirement benefitobligation. Regular valuations are prepared by independent professionally qualifiedactuaries on the projected unit credit method. The valuations are carried outevery three years and updated on a half yearly basis for accounting purposes.These determine the level of contribution required to fund the benefits set outin the rules of the plans and allow for the periodic increase of pensions inpayment. The regular service cost of providing retirement benefits to employees duringthe year is charged to operating profit in the year. Past service costs arerecognised immediately in income, unless the changes to the pension plan areconditional on the employees remaining in service for a specified period, inwhich case the past service costs are spread over that period. A credit representing the expected return on the assets of the retirementbenefit schemes during the year is included within interest. This is based onthe market value of the assets of the schemes at the start of the financialyear. A charge is also made within interest representing the expected increasein the liabilities of the retirement benefits schemes during the year. Thisarises from the liabilities of the scheme being one year closer to payment. The difference between the market value of the assets and the present value ofaccrued pension liabilities is shown as an asset or liability in the balancesheet. Differences between actual and expected returns on assets during the year arerecognised in the statement of recognised income and expense in the year,together with differences arising from changes in actuarial assumptions. For defined contribution plans, the group pays contributions to privatelyadministered pension plans on a contractual basis. The contributions arerecognised as an employee benefit expense as they fall due. Holiday payProvision is made for any holiday pay accrued by employees to the extent thatthe holiday entitlements accrued have not been taken at the period end. (P) Share-based paymentsThe group operates a number of equity-settled share-based payment plans. An expense is recognised in respect of the fair value of the share options atthe date of grant. This is calculated using the binomial method. A correspondingamount is recorded as an increase in equity within other reserves. This expenseis spread on a straight line basis over any relevant vesting period and isadjusted on a prospective basis at each period end for any changes inassumptions or estimates that relate to non market conditions, taking intoaccount the conditions existing at each balance sheet date. (Q) LeasesOperating lease rentals are charged to the income statement on a straight linebasis over the period of the lease. (R) TaxationThe charge for taxation is based on the profit for the year and takes intoaccount taxation deferred because of timing differences between the treatment ofcertain items for taxation and accounting purposes. Deferred tax is provided in full, using the balance sheet liability method, ontemporary differences arising between the tax bases of assets and liabilitiesand their carrying amounts in the financial statements. Deferred tax isdetermined using tax rates and laws that have been enacted by the balance sheetdate and are expected to apply when the related deferred tax asset is realisedor the deferred tax liability is settled. Deferred tax assets are recognised tothe extent that it is probable that future taxable profit will be availableagainst which the temporary differences can be utilised. Taxation is recognised in the income statement except to the extent that itrelates to items recognised directly in equity, in which case it is recognisedin equity. (S) DividendsIn accordance with IAS10, dividends are recognised in the financial statementsin the period in which they are approved or paid whichever is earlier. SECTION 3 - PRINCIPAL DIFFERENCES BETWEEN UK GAAP AND IFRS WHICH AFFECT THE GROUP (A) IAS 32/39 - Financial Instruments: Revenue recognitionUnder UK GAAP all interest earned was calculated by reference to the timing ofand the size of the payment received using the equivalent of 'rule 78' toapportion the amount of interest to each payment. Each missed paymentaccumulates a notional interest calculation which is released to income when asubsequent payment is received. Under IFRS the interest earned is calculated by using the effective interestrate (EIR) for each loan product. The EIR is based on the standard pricing foreach product assuming that the loan repays over its agreed term. (B) IAS 32/39 - Financial Instruments: ImpairmentUnder UK GAAP a provision is calculated with reference to the bad debt status ofa customer account. This status is determined by the number of missed payments acustomer has had. Therefore the provision percentage is based upon historicalexperience. However, under IFRS debts are assessed for impairment. The impairment charge iscalculated by discounting the estimated future cash flows to a present valueusing the EIR. Impairment is assessed by reference to the bad debt status asunder UK GAAP but is determined by reference to agreement and not the customeraccount. (C) IAS 38 - Promotional expenditureUnder UK GAAP promotional expenditure incurred at the accounting date relatingto the following season's sales is carried forward as prepaid expenditure andcharged against the next year's income. Under IFRS this treatment is prohibitedand promotional expenditure will be expensed to the income statement as it isincurred, except for catalogue costs and agents' stationery, which will continueto be carried forward as prepaid expenditure. (D) IAS 19 - Employee benefits: Pension scheme adjustmentsUnder UK GAAP, the group accounted for the defined benefit pension scheme underSSAP 24, 'Accounting for pension costs', and published the transitionaldisclosure required by FRS 17, 'Retirement benefits'. Under SSAP 24, the grouprecognised all pension and similar costs in the profit and loss account withinoperating profit, but did not recognise the net surplus or deficit in itsdefined benefit scheme in the group's balance sheet. In accordance with IAS 19, the net surplus or deficit arising on the definedbenefit pension scheme has been recognised in the financial statements. Pensionservice costs continue to be included within operating profit, whilst financeincome and costs associated with the scheme are presented as a component ofinterest. The finance income and costs represent the difference on expectedreturn on scheme assets and the interest charge arising from the unwinding ofthe discount applied to the scheme liabilities. Actuarial gains and losses arerecorded in the 'Statement of Recognised Income and Expense', as permitted bythe IASB's amendment to IAS 19. The group has potential deferred tax assets in respect of the deficit on thedefined benefit pension scheme. Under IAS 12, these are recognised to the extentthat it is probable that taxable profits will be available against which thedeductible temporary difference can be utilised. (E) IFRS 2 - Share based paymentsUnder UK GAAP, share options were only accounted for when the share was issuedand not when the shares were granted. Under IFRS 2, the fair value of the share options are recognised as a charge tothe income statement when the share options are granted. The charge to theincome statement will be spread over the vesting period of the award dependenton conditions existing at each balance sheet date. For all charges made to theincome statement a corresponding entry will be made to other reserves. (F) IAS 38 - GoodwillUnder UK GAAP, goodwill was amortised over its useful economic life. However, in accordance with IFRS, the amortisation of goodwill is prohibited andinstead the carrying value of the goodwill will be subject to an annualimpairment review. (G) IAS 10 - Events after the balance sheet date: dividendsUnder UK GAAP, dividends were recognised in the profit and loss account in theperiod to which they related. Under IFRS the dividends are recognised as a liability and a deduction fromequity in the period when they have been declared and approved by the company inthe general meeting. As a result the final dividend for the year ended 31st March 2004 that was notapproved until after the balance sheet date will be reversed out of the 2004accounts and recognised in the year ended 31st March 2005 accounts. Similarly,the final dividend for the year ended 31st March 2005 will be recognised in theyear ended 31st March 2006 accounts. (H) IAS 12 - Income tax, Corporation tax & Deferred taxCurrent taxes are accounted for under IFRS under the same basis as UK GAAP. Under UK GAAP deferred tax on revaluation gains is only recognised if there is abinding agreement to sell the revalued asset and the gain expected to arise onsale has been recognised or the asset has been continuously revalued to fairvalue with changes in fair value being recognised in the profit and lossaccount. Under IFRS deferred tax is always recognised on revaluation gains regardless ofany of the above conditions being met. (I) OthersIAS 38 - Intangible AssetsUnder UK GAAP, all capitalised software, software development and websitedevelopment costs are included within tangible fixed assets. IAS 38 requiresthat where such costs are not an integral part of the associated hardware, theyshould be classified as intangible assets. There is no impact to the incomestatement as a result of this reclassification. IAS 19 - Employee Benefits: Holiday payIAS 19 requires that when employees provide a service to the company, theestimated amount that will be paid in exchange for those services should berecognised. The group is recognising holiday pay accrued but not paid at the half year. Noaccrual is required at the year end as the holiday year and the financial yearare coterminous. IFRS 5 - Non current assets held for resaleUnder UK GAAP, all fixed assets that the group held that were being activelymarketed for sale were shown in fixed assets at net book value. Under IFRS 5,any property which is being actively marketed has been classified as anon-current asset held for resale and has been presented separately from otherbalance sheet assets and liabilities. The group currently has one such property.The property has been initially recognised at the lower of carrying amount andthe fair value less costs to sell. In addition the property held for resale isnot subject to depreciation. IAS 40 - Investment propertyIn accordance with the criteria set out under IFRS the group has a property thatshould be disclosed as investment property. This property has been disclosedseparately in the accounts at its depreciated cost with effect from 30 September2004. IAS 16 - Property, plant and equipmentThe group currently complies with FRS 15. All of the land and buildings in thegroup are held at cost less accumulated depreciation. The group has takenadvantage of the opportunity to revalue all properties as a one off revaluationon the date of transition to IFRS. This includes properties previously held asfixed assets but now held as non current assets for resale and investmentproperties. PARK GROUP PLCRECONCILIATION OF PROFIT FOR THE YEAR TO 31 MARCH 2005 IFRS Adjustments IAS 32/39 IAS38 IAS19 IFRS 2 IFRS3/IAS36 IAS10 IAS12 Others Total Financial Intangible Employee Share Goodwill Events Income effect instruments assets benefits -based impairment after the tax of the payments review balance transition sheet date to IFRS Previously Restatedreported UK IFRSGAAP figures balancesin IAS1 format in IAS1 format £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000ContinuingOperations Turnover 235,802 7,987 - - - - - - - 7,987 243,789Cost of sales (218,972) (14,549) (456) - - 169 - - (68) (14,904)(233,876) --------------------------------------------------------------------------------------------------------------- Gross profit/(loss) 16,830 (6,562) (456) - - 169 - - (68) (6,917) 9,913 Distrib-ution costs (1,696) - - - - - - - - - (1,696) Adminis-trative expenses (10,814) - - (40) (48) - - - - (88) (10,902) --------------------------------------------------------------------------------------------------------------- Operatingprofit/ (loss) 4,320 (6,562) (456) (40) (48) 169 - - (68) (7,005) (2,685) Interestreceivableandsimilarincome 2,026 - - - - - - - - - 2,026 Interest payableand similar charges (3) - - - - - - - - - (3) --------------------------------------------------------------------------------------------------------------- Profit/(loss)before taxation 6,343 (6,562) (456) (40) (48) 169 - - (68) (7,005) (662) Taxation (1,944) - - - - - - 2,146 - 2,146 202 --------------------------------------------------------------------------------------------------------------- Profit/(loss)fromcontin-uing operations 4,399 (6,562) (456) (40) (48) 169 - 2,146 (68) (4,859) (460) --------------------------------------------------------------------------------------------------------------- Discon-tinuedOpera-tions Loss fromdiscon-tinued operat-ions (567) - - - - - - - - - (567) --------------------------------------------------------------------------------------------------------------- Profit/(loss) forthe period 3,832 (6,562) (456) (40) (48) 169 - 2,146 (68) (4,859) (1,027) =============================================================================================================== PARK GROUP PLCRECONCILIATION OF PROFIT FOR THE HALF YEAR TO 30 SEPTEMBER 2004 IFRS Adjustments IAS 32/39 IAS38 IAS19 IFRS 2 IFRS3/IAS36 IAS10 IAS12 Others Total Financial Intangible Employee Share Goodwill Events Income effect instruments assets benefits -based impairment after the tax of the payments review balance transition sheet date to IFRS Previously Restatedreported UK IFRSGAAP figures balancesin IAS1 format in IAS1 format £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 ContinuingOperations Turnover 28,931 3,260 - - - - - - - 3,260 32,191Cost of sales (27,223) (7,208) (677) - - 77 - - 22 (7,786) (35,009) ---------------------------------------------------------------------------------------------------------------Gross profit/ (loss) 1,708 (3,948) (677) - - 77 - - 22 (4,526) (2,818) Distrib-ution costs (129) - - - - - - - 24 24 (105)Adminis-trative expenses (5,214) - - (20) (20) - - - 333 293 (4,921) --------------------------------------------------------------------------------------------------------------- Operating (loss)/profit (3,635) (3,948) (677) (20) (20) 77 - - 379 (4,209) (7,844) Interestreceivable and similar income 845 - - - - - - - - - 845 Interest payableand similar charges - - - - - - - - - - - (Loss)/profitbefore taxation (2,790) (3,948) (677) (20) (20) 77 - - 379 (4,209) (6,999) Taxation - - - - - - - 2,159 - 2,159 2,159 --------------------------------------------------------------------------------------------------------------- (Loss)/profit fromcontin-uing opera-tions (2,790) (3,948) (677) (20) (20) 77 - 2,159 379 (2,050) (4,840) Discon-tinuedOpera-tions (Loss)/profit fromdiscon-tinued operations (647) - - - - - - 201 - 201 (446) ---------------------------------------------------------------------------------------------------------------(Loss)/profit fortheperiod (3,437) (3,948) (677) (20) (20) 77 - 2,360 379 (1,849) (5,286) =============================================================================================================== PARK GROUP PLCRECONCILIATION OF EQUITY AT 31 MARCH 2005 IFRS Adjustments IAS 32/39 IAS38 IAS19 IFRS 2 IFRS3/IAS36 IAS10 IAS12 Others Total Financial Intangible Employee Share Goodwill Events Income effect instruments assets benefits -based impairment after the tax of the payments review balance transition sheet date to IFRS Previously Restatedreported UK IFRSGAAP figures balancesin IAS1 format in IAS1 format £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 AssetsNon-current assetsGoodwill 2,824 - - - - 169 - - - 169 2,993Intangible assets - - - - - - - - 1,098 1,098 1,098Investments 2 - - - - - - - - - 2Investment property 1,383 - - - - - - - 129 129 1,512 Property,plant &equipment 5,818 - - - - - - - (66) (66) 5,752Deferred tax assets - - - - - - - 6,674 - 6,674 6,674 --------------------------------------------------------------------------------------------------------------- 10,027 - - - - 169 - 6,674 1,161 8,004 18,031 --------------------------------------------------------------------------------------------------------------- Current assetsLoans andreceiv-ables 34,768 (18,333) - - - - - - - (18,333) 16,435Invento-ries 685 - - - - - - - - - 685 Trade and otherreceiv-ables 8,226 - (3,328) - - - - - - (3,328) 4,898Cash and cashequiv-alents 4,694 - - - - - - - - - 4,694 --------------------------------------------------------------------------------------------------------------- 48,373 (18,333) (3,328) - - - - - - (21,661) 26,712 --------------------------------------------------------------------------------------------------------------- Non-currentassetsheld forresale 239 - - - - - - - 461 461 700 --------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------Total assets 58,639 (18,333) (3,328) - - 169 - 6,674 1,622 (13,196) 45,443 --------------------------------------------------------------------------------------------------------------- Liabil-itiesCurrentliabil-itiesTrade and other payables (60,481) - - - - - 1,215 - - 1,215 (59,266) Current tax liabi-lities (853) - - - - - - - - - (853) --------------------------------------------------------------------------------------------------------------- (61,334) - - - - - 1,215 - - 1,215 (60,119) Non-currentliabil-itiesRetirement benefitobligation - - - (1,623) - - - - - (1,623) (1,623) Deferred tax liability (24) - - - - - - - - - (24) --------------------------------------------------------------------------------------------------------------- (24) - - (1,623) - - - - - (1,623) (1,647) --------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------Total liabi-lities (61,358) - - (1,623) - - 1,215 - - (408) (61,766) --------------------------------------------------------------------------------------------------------------- Net (liabil-ities)/ assets (2,719) (18,333) (3,328) (1,623) - 169 1,215 6,674 1,622 (13,604) (16,323) --------------------------------------------------------------------------------------------------------------- Share-holders'equityShare capital 3,283 - - - - - - - - - 3,283Share premium 969 - - - - - - - - - 0969accountRetained earnings (6,971) (18,333) (3,328) (1,623) (74) 169 1,215 7,172 - (14,802) (21,773)Other reserves - - - - 74 - - (498) 1,622 1,198 1,198 ---------------------------------------------------------------------------------------------------------------Totalshareholders' equity (2,719) (18,333) (3,328) (1,623) - 169 1,215 6,674 1,622 (13,604) (16,323) --------------------------------------------------------------------------------------------------------------- PARK GROUP PLCRECONCILIATION OF EQUITY AT 1 APRIL 2004 IFRS Adjustments IAS 32/39 IAS38 IAS19 IFRS 2 IFRS3/IAS36 IAS10 IAS12 Others Total Financial Intangible Employee Share Goodwill Events Income effect instruments assets benefits -based impairment after the tax of the payments review balance transition sheet date to IFRS Previously Restatedreported UK IFRSGAAP figures balancesin IAS1 format in IAS1 format £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 AssetsNon-current assetsGoodwill 2,221 - - - - - - - - - 2,221Intangible assets - - - - - - - - 1,420 1,420 1,420Investments 2 - - - - - - - - - 2Investment property - - - - - - - - - - - Property,plant &equipment 8,545 - - - - - - - (185) (185) 8,360Deferred tax assets 5 - - - - - - 4,743 - 4,743 4,748 --------------------------------------------------------------------------------------------------------------- 10,773 - - - - - - 4,743 1,235 5,978 16,751 Current assetsLoans andrecei-vables 24,592 (11,771) - - - - - - - (11,771) 12,821Inven-tories 1,461 - - - - - - - - - 1,461Trade and otherreceiv-ables 7,781 - (2,872) - - - - - - (2,872) 4,909Cash and cashequiv-alents 4,640 - - - - - - - - - 4,640 --------------------------------------------------------------------------------------------------------------- 38,474 (11,771) (2,872) - - - - - - (14,643) 23,831 --------------------------------------------------------------------------------------------------------------- Non-current assetsheld for resale 181 - - - - - - - 455 455 636 ---------------------------------------------------------------------------------------------------------------Total assets 49,428 (11,771) (2,872) - - - - 4,743 1,690 (8,210) 41,218 --------------------------------------------------------------------------------------------------------------- LiabilitiesCurrentliabilitiesTrade and other payables (54,134) - - - - - 1,103 - - 1,103 (53,031) Current taxliabil-ities (132) - - - - - - - - - (132) --------------------------------------------------------------------------------------------------------------- (54,266) - - - - - 1,103 - - 1,103 (53,163) --------------------------------------------------------------------------------------------------------------- Non-currentliabilitiesRetirement benefitobligation - - - (2,299) - - - - - (2,299) (2,299) Deferred tax liability - - - - - - - - - - - --------------------------------------------------------------------------------------------------------------- - - - (2,299) - - - - - (2,299) (2,299) Total liabi-lities (54,266) - - (2,299) - - 1,103 - - (1,196) (55,462) --------------------------------------------------------------------------------------------------------------- Net (liabilities)/ assets (4,838) (11,771) (2,872) (2,299) - - 1,103 4,743 1,690 (9,406) (14,244) --------------------------------------------------------------------------------------------------------------- Share-holders'equityShare capital 3,267 - - - - - - - - - 3,267 Share premium account 892 - - - - - - - - - 892 Retained earnings (8,997) (11,771) (2,872) (2,299) (26) - 1,103 5,237 - (10,628) (19,625)Other reserves - - - - 26 - - (494) 1,690 1,222 1,222 ---------------------------------------------------------------------------------------------------------------Totalshare-holders' equity (4,838) (11,771) (2,872) (2,299) - - 1,103 4,743 1,690 (9,406) (14,244) --------------------------------------------------------------------------------------------------------------- PARK GROUP PLCRECONCILIATION OF EQUITY AT 30 SEPTEMBER 2004 IFRS Adjustments IAS 32/39 IAS38 IAS19 IFRS 2 IFRS3/IAS36 IAS10 IAS12 Others Total Financial Intangible Employee Share Goodwill Events Income effect instruments assets benefits -based impairment after the tax of the payments review balance transition sheet date to IFRS Previously Restatedreported UK IFRSGAAP figures balancesin IAS1 format in IAS1 format £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 AssetsNon-current assetsGoodwill 2,443 - - - - 77 - - - 77 2,520Intangible assets - - - - - - - - 1,220 1,220 1,220Investments 2 - - - - - - - - - 2Investmentproperty 1,400 - - - - - - - 131 131 1,531Property, plant &equipment 5,991 - - - - - - - (153) (153) 5,838Deferred tax assets 5 - - - - - - 5,930 - 5,930 5,935 --------------------------------------------------------------------------------------------------------------- 9,841 - - - - 77 - 5,930 1,198 7,205 17,046 ---------------------------------------------------------------------------------------------------------------Current assetsLoans andreceiv-ables 28,782 (15,719) - - - - - - - (15,719) 13,063Invent-ories 6,142 - - - - - - - 419 419 6,561Trade and otherrece-ivables 9,504 - (3,549) - - - - - 11 (3,538) 5,966Current tax assets - - - - - - - 1,066 - 1,066 1,066Cash and cashequiv-alents 74,717 - - - - - - - - - 74,717 --------------------------------------------------------------------------------------------------------------- 119,145 (15,719) (3,549) - - - - 1,066 430 (17,772) 101,373 --------------------------------------------------------------------------------------------------------------- Non-current assetsheld for resale 178 - - - - - - - 458 458 636 Total assets 129,164 (15,719) (3,549) - - 77 - 6,996 2,086 (10,109) 119,055 LiabilitiesCurrentliabilitiesTrade and other paya-bles (137,410) - - - - - - - (17) (17)(137,427) Current taxliabil- ities (28) - - - - - - - - - (28) --------------------------------------------------------------------------------------------------------------- (137,438) - - - - - - - (17) (17)(137,455) --------------------------------------------------------------------------------------------------------------- Non-currentliabilities Retirement benefitobligation - - - (1,961) - - - - - (1,961) (1,961)Deferred tax liability - - - - - - - - - - - --------------------------------------------------------------------------------------------------------------- - - - (1,961) - - - - - (1,961) (1,961) --------------------------------------------------------------------------------------------------------------- Total liabil-ities (137,438) - - (1,961) - - - - (17) (1,978)(139,416) --------------------------------------------------------------------------------------------------------------- Net (liabil-ities)/assets (8,274) (15,719) (3,549) (1,961) - 77 - 6,996 2,069 (12,087) (20,361) --------------------------------------------------------------------------------------------------------------- Share-holders'equity Sharecapital 3,268 - - - - - - - - - 3,268 Share premium account 892 - - - - - - - - - 892 Retained earnings (12,434) (15,719) (3,549) (1,961) (46) 77 - 7,490 413 (13,295) (25,729) Othereserves - - - - 46 - - (494) 1,656 1,208 1,208 --------------------------------------------------------------------------------------------------------------- Totalshare-holders' equity (8,274) (15,719) (3,549) (1,961) - 77 - 6,996 2,069 (12,087) (20,361) --------------------------------------------------------------------------------------------------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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