Restatement under IFRS
Falkland Islands Holdings PLC
31 October 2007
Falkland Islands Holdings plc
Restatement of primary financial information for 2006/7 under International
Financial 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 2006
6.3 Consolidated balance sheet at 31 March 2007
6.4 Consolidated income statement for the half-year ended 30 September 2006
6.5 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, for
accounting periods up to 31 March 2007, prepared its consolidated financial
statements under UK Generally Accepted Accounting Principles ('UK GAAP'). The
next annual consolidated financial statements of the Group, for the year ending
31 March 2008, are required by AIM rules to be prepared in accordance with
International Financial Reporting Standards ('IFRS') as adopted by the European
Union ('adopted IFRS'). The Group's first published results under IFRS will be
the 2007 Interim Report for the six months ended 31 September 2007. The date
for the transition to IFRS was 1 April 2006, being the start of the period of
comparative information.
This announcement explains how the Group's previously reported financial
performance and position under UK GAAP are reported under IFRS. Set out in
section 6 is information previously published under UK GAAP as restated under
IFRS, 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 GAAP
statements to the revised IFRS presentation are included in section 4 (below).
The financial information in this announcement has been prepared on the basis of
the recognition and measurement requirements of adopted IFRS as at 30 September
2007 that are effective (or available for early adoption) at 31 March 2008, the
Group'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 are
prepared 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 change
and cannot be determined with certainty at the present time. Accordingly, the
accounting policies for that annual period will only be finally determined when
the financial statements are prepared for the year ending 31 March 2008. If any
such changes to accounting policies do occur as a result of new IFRS and
interpretations, the accompanying restated information will be updated.
In accordance with IFRS1 ' First-time Adoption of International Financial
Reporting Standards' no adjustments have been made for any changes in estimates
made at the time of approval of the UK GAAP financial statements on which the
preliminary IFRS financial statements are based.
The preliminary IFRS financial information set out herein does not constitute
the company's statutory accounts for the year ended 31 March 2007. Those
accounts, which were prepared under UK GAAP, have been reported on by the
company's auditor and delivered to the registrar of companies. The report of
the 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 by
demanding retrospective restatement of previously presented financial statements
in compliance with adopted IFRS from the start of the earliest comparative
period presented in the entity's first IFRS financial statements (i.e.) 1 April
2006 for the year ending 31 March 2008.
Notwithstanding the general prescription to apply the provisions of individual
IFRS to previously presented financial statements, IFRS1 makes available a
number of exemptions to this, and the Group have elected to take advantage of
the following:
Business Combinations (IFRS 3)
The Group has elected not to apply IFRS 3 'Business Combinations' to business
combinations which took place prior to the date of transition to IFRS at 1 April
2006.
Share-based Payments (IFRS 2)
The Group has elected not to apply the recognition and measurement criteria of
IFRS 2 'Share-based Payments' to equity instruments (specifically, share
options) that were granted on or before 7 November 2002. This is in keeping
with the exemption available under FRS 20, which the Group elected to take on
adoption of that standard for the first time in its accounts for the year ended
31 March 2007.
Employee Benefits (IAS 19)
The Group has elected to recognize all cumulative actuarial gains and losses for
the Group's defined benefit pension schemes at the date of transition as an
adjustment to opening retained earnings. This is in keeping with the provisions
of FRS 17, adopted by the Group for the first time for the year ended 31 March
2006, which requires actuarial gains and losses to be recognised immediately
they occur in the Statement of Recognised Gains and Losses, thereby on adoption
recognising all cumulative gains and losses as an adjustment to retained
earnings.
3. Significant accounting policies
Falkland Islands Holdings plc (the 'Company') is a company incorporated and
domiciled in the United Kingdom. Its shares are traded on AIM, a market
operated 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 information
has been prepared on a consistent basis under applicable adopted IFRS and the
effects of this transition reported in accordance with 'IFRS1: First-time
Adoption of IFRS'.
IFRS1 permits companies adopting IFRS for the first time to take exemptions from
the full requirements of IFRS in the transition period. The following are the
Group'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 the
nearest thousand. They are prepared on the historical cost basis except that
available-for-sale financial instruments are stated at their fair value.
The accounting policies set out below have been applied consistently in
preparing the opening IFRS balance sheet at 1 April 2006 and to all periods
presented in this IFRS restatement.
(b) Basis of consolidation
The consolidated financial statements comprise the financial statements of
Falkland Islands Holdings plc and its subsidiaries (the 'Group'). A subsidiary
is any entity Falkland Islands Holdings plc has the power to control the
financial and operating policies of so as to obtain benefits from its
activities. The financial statements of subsidiaries are prepared for the same
reporting period as the parent company, using consistent accounting policies.
Subsidiaries are consolidated from the date on which control is transferred to
the Group and cease to be consolidated from the date on which control is
transferred out of the Group.
All intra-company balances and transactions, including unrealised profits
arising from intra-group transactions, are eliminated in full in preparing the
consolidated financial statements. Unrealised losses are eliminated but only to
the extent that there is no evidence of impairment.
(c) Foreign currencies
Transactions in foreign currencies are translated to the functional currencies
of group entities at exchange rates ruling at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are
retranslated to the functional currency using the relevant rates of exchange
ruling at the balance sheet date and the gains or losses thereon are included in
the income statement.
Non-monetary assets and liabilities are translated using the exchange rate at
the date of the initial transaction.
(d) Property, plant & equipment
Property, plant and equipment are measured at cost less accumulated depreciation
and impairment losses. Cost comprises purchase price and directly attributable
expenses. Depreciation is charged to the income statement on a straight-line
basis over the estimated useful lives of each part of an item of property, plant
and 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 adjusted
if appropriate, at each balance sheet date. If an indication of impairment
exists, the assets are written down to their recoverable amount and the
impairment 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 for
capital appreciation or for both. Investment properties are stated at cost less
any accumulated depreciation (in line with accounting policy (d) above) and any
impairment 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 on
the basis of deemed cost, which represents the amount recorded under previous
GAAP. The classification and accounting treatment of business combinations
which occurred prior to transition has not been reconsidered in preparing the
Group'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 the
cost of the business combination over the acquirer's interest in the fair value
of the identifiable assets, liabilities and contingent liabilities of the
acquired business. Following initial recognition, goodwill is measured at cost
less any accumulated impairment losses. Goodwill is not amortized but reviewed
for impairment annually or more frequently if events or changes in circumstances
indicate that the carrying value may be impaired.
Computer software
Acquired computer software is capitalised as an intangible asset on the basis of
the cost incurred to acquire and bring the specific software into use.
Amortisation is charged to the income statement on a straight-line basis over
the estimated useful lives of intangible assets from the date that they are
available for use. The estimated useful life of computer software is five
years.
(g) Impairment of non-financial assets
At each reporting date the Group assesses whether there is any indication that
an asset may be impaired. Where an indicator of impairment exists or the asset
requires annual impairment testing, the Group makes a formal estimate of the
recoverable amount. Where the carrying amount of an asset exceeds its
recoverable amount the asset is considered impaired and is written down to its
recoverable amount.
Recoverable amount is the greater of an asset's or cash-generating unit's fair
value less cost to sell or value in use. It is determined for an individual
asset, unless the asset's value in use cannot be estimated to be close to its
fair value less costs to sell and it does not generate cash inflows that are
largely independent of those from other assets or groups of assets, in which
case, the recoverable amount is determined for the cash-generating unit to which
the asset belongs.
In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and risks specific to the asset.
An impairment loss with respect of goodwill is not reversed. In respect of
other assets, impairment losses are reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss is
reversed only to the extent that the asset's carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
(h) Financing costs
Net financing costs comprise of interest payable, interest receivable, and
foreign exchange gains and losses that are recognised in the income statement.
Interest income and interest payable is recognised as a profit or loss as it
accrues, using the effective interest method.
(i) Financial instruments
Certain financial instruments held by the Group are classified as being
available-for-sale and are stated at fair value, with any resultant gain or loss
being recognised directly in equity, except for impairment losses. When these
items are derecognised, the cumulative gain or loss previously recognised
directly in equity is recognised in profit and loss.
The fair value of financial instruments classified as available for sale is
their quoted bid price at the balance sheet date.
(j) Employee share awards
The Group provides benefits to certain employees (including Directors) in the
form of share-based payment transactions, whereby the employee renders service
in return for shares or rights over future shares ('equity settled transactions
'). The cost of these equity settled transactions with employees is measured by
reference to an estimate of their fair value at the date on which they were
granted using an option input pricing model taking into account the terms and
conditions upon which the options were granted. The amount recognised as an
expense is adjusted to reflect the actual number of share options that vest
except where forfeiture is only due to share prices not achieving the threshold
for vesting.
The cost of equity settled transactions is recognised, together with a
corresponding increase in reserves, over the period in which the performance
conditions are fulfilled, ending on the date that the option vests.
(k) Inventories
Inventories are stated at the lower of cost and net realisable value. Net
realisable value is estimated as selling price in the ordinary course of
business less costs of disposal. The cost of stock is based on the first-in
first-out principle and comprises purchase price and where applicable includes
expenditure incurred in transportation to the Falkland Islands.
(l) Revenue
Revenue is the amount receivable by the Group for goods supplied and services
rendered excluding VAT. Revenue principally arises from retail sales and the
provision of ferry services, but also includes hotel takings, insurance
commissions, revenues billed for shipping and agency activities and port
services, in the Falkland Islands. Revenue from sale of goods is recognised at
the point of sale or dispatch, whilst that of the ferry and other services is
recognised when the service is provided.
(m) Pensions
Defined contribution pension schemes
The Group operates two defined contribution schemes. The assets of the schemes
are held separately from those of the Group in independently administered funds.
The amount charged to the income statement represents the contributions
payable to the schemes in respect to the accounting period.
Defined benefit pension schemes
The Group also operates two pension schemes providing benefits based on final
pensionable pay, one of which is unfunded. The assets of the funded scheme are
held separately from those of the Group.
The Group's net obligation in respect of each defined benefit pension plan is
calculated by estimating the amount of future benefit that employees have earned
in return for their service in the current and prior periods; that benefit is
discounted to its present value; and any unrecognised past service costs and the
fair value of the plan assets (at bid price) are deducted. The liability
discount rate is the yield at the balance sheet date on AA credit-rated bonds
that have maturity dates approximating the terms of the Group's obligations.
The calculation is performed by a qualified actuary using the projected unit
credit method. When the calculation results in a benefit to the Group, the
asset recognised is limited to the net total of any unrecognised past service
costs and the present value of any future refunds from the plan or reductions in
future contributions to the plan.
Actuarial gains and losses are recognised in full in the period in which they
arise in the statement of recognised income and expense.
(n) Trade receivables
Trade receivables are carried at original invoice amount less an allowance for
any uncollectible amounts. An estimate for doubtful debts is made when
collection 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 at
that date to the extent that they are appropriately authorized and are no longer
at the discretion of the Company.
(q) Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash balances and call
deposits with an original maturity of three months or less. Bank overdrafts
that are repayable on demand and form an integral part of the Group's cash
management are included as a component of cash and cash equivalents for the
purpose of the statement of cash flows.
(r) Income tax
Income tax on the profit or loss for the year comprises current and deferred
tax. Income tax is recognised in the income statement, except to the extent
that it relates to items recognised directly in equity, in which case it is
recognised 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, and
any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet method, providing for temporary
differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. The following
temporary 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 future
taxable profits will be available against which the temporary differences can be
utilized. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit
will be realized.
Deferred tax is recognised at the tax rates that are expected to be applied to
the temporary differences when they reverse, based on rates that have been
enacted or substantially enacted by the reporting date.
(s) Leased assets
Leases in which the Group assumes substantially all the risks and rewards of
ownership are classified as finance leases. All other leases are classified as
operating leases.
As lessee
Rentals in respect of all operating leases are charged to the income statement
on a straight line basis over the lease term.
As lessor
Assets under hire purchase agreements are shown in the balance sheet under
current assets, to the extent they are due within one year and under non-current
assets, to the extent that they are due after more than one year, and are stated
at the value of the net investment in the agreements. The income from such
agreements is credited to the income statement each year so as to give a
constant rate of return on the funds invested.
Assets held for leasing out under operating leases are included in investment
property (where they constitute land and buildings) or in stock (where they do
not constitute land and buildings) at cost less accumulated depreciation and
impairment losses. Rental income is recognised on a straight-line basis. Lease
incentives granted are recognised as an integral part of the total rental
income.
(t) Non-current assets held for sale and discontinued operations
Non-current assets and discontinued operations are classified as held for sale
when their carrying values will be recovered principally through sale. They are
generally measured at the lower of carrying amount and fair value less costs to
sell.
(u) Provisions
Provisions are recognised in the balance sheet when the Group has a present
legal or constructive obligation as a result of a past event, and it is probable
that an outflow of economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. If the
effect is material, provisions are determined by discounting the expected cash
flows at an appropriate pre-tax risk free rate.
4. Explanation of transition to IFRS
The following explanations are offered to accompany the restatements presented
at 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 financial
instruments are stated at fair value, with any resultant gain or loss being
recognised directly in equity, except for impairment losses. When these items
are derecognised, the cumulative gain or loss previously recognised directly in
equity is recognised in profit and loss.
The fair value of financial instruments classified as available for sale is
their quoted bid price at the balance sheet date.
The following table sets out the relevant fair values of the Group's holdings at
UK GAAP cost and IFRS transition date fair value and hence the revaluation
adjustment required for each restated balance sheet presented:
IAS 39 restatements Consolidated balance sheet as at:
1 April 30 September 2006 31 March 2007
2006
£'000
Investments in FGML and FOGL at UK GAAP cost 2,610 2,610 2,420
Investments in FGML and FOGL at IFRS fair value 23,269 13,650 12,900
Revaluation made 20,659 11,040 10,480
Share price:
FGML 15.50p 8.00p -
FOGL 143.50p 85.00p 86.00p
Shareholding:
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 the
asset de-recognised. On de-recognition IAS39 requires the balance on the
revaluation reserve relating to the asset to be transferred to the profit and
loss account. There is no impact on the gain on disposal recognised previously
under UK GAAP from IFRS adoption, and accordingly no impact on the profit and
loss account for the period.
IAS 19 'Employee Benefits'
As discussed in section 2, the Group has elected to recognize all cumulative
actuarial gains and losses as an adjustment to opening retained earnings on
transition in keeping with FRS17, adopted under UK GAAP for the first time for
the year ending 31 March 2006.
However, whereas previously under UK GAAP the liability as regards defined
benefit 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 the
balance sheet. In addition, IAS12 'Income Taxes' requires deferred tax assets
and liabilities to be separately categorized on the balance sheet as non-current
items.
IAS 19 Reclassifications Consolidated balance sheet as at:
1 April 30 September 2006 31 March 2007
2006
£'000
Net pension liability reported under UK GAAP 1,909 1,918 1,869
Deferred tax asset reclassified 669 671 648
Gross 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 of
days leave at each reporting date that employees are entitled to but have not
used, and that can be used (or paid) in future periods. The holiday pay accrual
required was £32,000 at 1 April 2006 and £49,000 at both 30 September 2006 and
31 March 2007.
IAS 38 'Intangible Assets'
Under IAS38 'Intangible Assets' and IFRS3 'Business Combinations' goodwill
arising as a result of a business combination is recognised at cost and
capitalized, but is not subject to amortisation, as was previously the case
under UK GAAP. Instead, the carrying value of such goodwill is reviewed at
least annually for impairment.
An adjustment is therefore required to reverse the goodwill amortisation charges
for 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 the
restated 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
£'000
Goodwill stated at UK GAAP amortised cost 3,979 3,877 3,775
Reversal of goodwill amortisation - 102 204
Goodwill 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 at
each of the restated balance sheet dates on the reported net assets of the
Group, and on reported profits on ordinary activities after tax for the six
months 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
£'000
Net assets as previously reported under UK GAAP 12,852 13,385 14,136
Add: Restatement of investments to fair value 20,659 11,040 10,480
Add: Write-back of goodwill amortisation - 102 204
Less: 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
£'000
Net assets as previously reported under UK GAAP 341 1,446
Add: Write-back of goodwill amortization 102 204
Less: 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 Group
IFRS 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 £'000
Fixed assets Non-current assets
Intangible assets 3,979 Intangible assets 3,979 3,979
Tangible assets 8,042 (1,620) Property, plant and 6,422 6,422
equipment
1,620 Investment properties 1,620 1,620
Investments 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 assets
Stocks 3,107 Inventories 3,107 3,107
Debtors due within 1,789 (142) Trade and other 1,647 1,647
one year receivables
46 Income tax receivable 46 46
96 Other financial assets 96 96
Debtors due after one 48 (48) 0 0
year
Cash at bank and 3,601 Cash and cash 3,601 3,601
on-hand equivalents
8,545
Total current assets 8,497 8,497
TOTAL ASSETS 23,176 44,504
Creditors: amounts (4,797) 4,797 Current liabilities
falling due within 1
year
(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 18,379
current liabilities
Non-current liabilities
Creditors 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) 1,909
liabilities
Net assets 12,852 0 Net assets 12,852 20,659 (32) 33,479
Capital and reserves Capital and reserves
Called up share 838 Called up share capital 838 838
capital
Share premium account 7,064 Share premium account 7,064 7,064
Other reserves 703 Other reserves 703 703
Revenue 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) 33,479
funds 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 Group
IFRS 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 £'000
Fixed assets Non-current assets
Intangible assets 3,877 Intangible assets 3,877 102 3,979
Tangible assets 7,929 (1,604) Property, plant and 6,325 6,325
equipment
1,604 Investment properties 1,604 1,604
Investments 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 assets
Stocks 2,751 Inventories 2,751 2,751
Debtors due within 1,466 (138) Trade and other 1,328 1,328
one year receivables
Debtors due after Income tax receivable 0 0
one year
92 Other financial assets 92 92
Cash at bank and 4,160 Cash and cash 4,160 4,160
on-hand equivalents
8,377 Total current assets 8,331 8,331
TOTAL ASSETS 22,793 34,606
Creditors: Amounts (3,442) 3,442 Current liabilities
due within one
year
(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 19,351
current
liabilities
Non-current
liabilities
Creditors 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)
liabilities
Net assets 15,303 (6,637)
excluding pension
liabilities
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 reserves
reserves
Called up share 847 Called up share 847 847
capital capital
Share premium 7,207 Share premium account 7,207 7,207
account
Other reserves 703 Other reserves 703 703
Revenue 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) 24,478
shareholders' funds
funds
(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 Group
IFRS 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 £'000
Fixed assets Non-current assets
Intangible assets 3,775 Intangible assets 3,775 204 3,979
Tangible assets 7,856 (1,588) Property, plant & 6,268 6,268
equipment
1,588 Investment properties 1,588 1,588
Investments 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 assets
Stocks 2,678 Inventories 2,678 2,678
Debtors due 2,517 (133) Trade and other 2,384 2,384
within one year receivables
Income tax receivable 0 0
133 Other financial 133 133
assets
Debtors due after 45 (45) 0
one year
Cash at bank and 4,959 Cash and cash 4,959 4,959
on-hand equivalents
10,199
Total current assets 10,154 10,154
Creditors
TOTAL ASSETS 24,250 35,582
Amounts due (5,310) 5,310 Current liabilities
within 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 4,889
assets
Total assets less 18,940
current
liabilities
Non-current
liabilities
Creditors 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 liabilities
Net assets 16,005
excluding pension
liabilities
Total non-current (4,804) (5,452)
liabilities
Net pension (1,869) 1,869
scheme
liabilities
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 reserves
reserves
Called up share 847 Called up share 847 847
capital capital
Share premium 7,206 Share premium account 7,206 7,206
account
Other reserves 703 Other reserves 703 703
Revenue 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) 24,771
shareholders' funds
funds
(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 Comparatives
months 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 124 124
Goodwill amortisation (102) 102
Operating profit before financing 619 704
costs
Financing income 103 103
Financing 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) 426
tax
6.5 Restatement:
Consolidated Income Statement for the year ended 31 March 2007
Consolidated Income Statement: year IFRS Transition Restated FY P&L Comparatives
ended 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 338 338
Goodwill amortisation (204) 204
Operating profit before financing 1,510 1,697
costs
Financing income 205 205
Profit on disposal of financial 485 485
investment
Financing 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) 1,633
tax
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