Annual Report and Financial Statements 2007 - Tesco PLC

FINANCIAL STATEMENTS CONTENTS
Statement of Directors’ responsibilities 42
Independent auditors’ report to the members of Tesco PLC 43
Group income statement 44
Group statement of recognised income and expense 45
Group balance sheet 46
Group cash flow statement 47
Notes to the Group financial statements
1 Accounting policies 48
2 Segmental reporting 56
3 Income and expenses 58
4 Employment costs, including Directors’ remuneration 59
5 Finance income and costs 59
6 Taxation 60
7 Discontinued operations and assets classified as held for sale 62
8 Dividends 64
9 Earnings per share and diluted earnings per share 64
10 Goodwill and other intangible assets 65
11 Property, plant and equipment 67
12 Investment property 70
13 Group entities 71
14 Other investments 74
15 Inventories 74
16 Trade and other receivables 74
17 Cash and cash equivalents 75
18 Trade and other payables 75
19 Borrowings 75
20 Financial instruments 77
21 Provisions 79
22 Share-based payments 80
23 Post-employment benefits 83
24 Called up share capital 87
25 Statement of changes in equity 88
26 Business combinations 90
27 Related party transactions 94
28 Reconciliation of profit before tax to net cash 95
generated from operations
29 Analysis of changes in net debt 95
30 Commitments and contingencies 96
31 Leasing commitments 96
32 Events after the balance sheet date 97
Parent Company financial statements 100