For the year ended
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The Group’s signi cant accounting policies are summarised below.
Accounting policies and presentation
Basis of preparation
The consolidated nancial statements (the ‘statements’) have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed and adopted for use by the European Union. These statements have been prepared under the historical cost method except where other measurement bases are required to be applied under IFRS as set out below. These statements have been prepared using all standards and interpretations required for nancial periods beginning 1 January 2015. No standards or interpretations have been adopted before the required implementation date.
Subsidiaries and equity accounted investments account in the currency of their primary economic environment of operation, determined having regard to the currency which mainly influences sales and input costs. Transactions are translated at exchange rates approximating to the rate ruling on the date of the transaction except in the case of material transactions when actual spot rate may be used where it more accurately reflects the underlying substance of the transaction. Where practicable, transactions involving foreign currencies are protected by forward contracts. Assets and liabilities denominated in foreign currencies are translated at the exchange rates ruling at the balance sheet date. Such transactional exchange di erences are taken into account in determining pro t before tax. Material foreign currency movements arising on the translation of intra-group balances where there is no intention of repayment are treated as part of the net investment in a subsidiary and are recognised through equity. Movements on other intra-group balances are recognised through the income statement. The Group’s presentational currency is sterling. On consolidation, results and cash flows of foreign subsidiaries and equity accounted investments are translated to sterling at average exchange rates except in the case of material transactions when the actual spot rate is used where it more accurately reflects the underlying substance of the transaction. Assets and liabilities are translated at the exchange rates ruling at the balance sheet date. Such translational exchange di erences are taken to equity. Pro ts and losses on the realisation of foreign currency net investments include the accumulated net exchange di erences that have arisen on the retranslation of the foreign currency net investments since 1 January 2004 up to the date of realisation.
Standards, revisions and amendments to standards and interpretations
The Group adopted all applicable amendments to standards with an e ective date in 2015 with no material impact on its results, assets and liabilities. All other accounting policies have been applied consistently.
Basis of consolidation