BRITISH TOURIST AUTHORITY TRADING AS VISITBRITAIN ...

VisitBritain and VisitEngland
Notes forming part of the financial statements for the year ended 31 st March 2010 (Continued)
Accounting policies (Continued)
Standards, amendments and interpretations to existing standards not yet effective
The application of any new or amended IFRS standards is governed by their adoption by the FReM. Usually such changes are
not put into effect by the FReM until the effective date of the related IFRS, although occasionally some changes are adopted
early or might be delayed. The following standards have been published but are not effective for the periods presented and the
group has chosen not to early adopt:
IAS 39 (Amendment): Eligible Hedged Items;
IFRIC 9 (Amendment): Reassessment of Embedded Derivatives;
IFRS 3 (Revised): Business Combinations;
IAS 27 (Amendment): Consolidated and Separate Financial Statements;
IAS 39 (Amendment): Financial Instruments: Recognition and Measurement;
IFRIC 17: Distributions of Non-cash Assets to Owners;
IFRIC 18: Transfer of Assets from Customers;
IFRS 2 (Amendment): Group Cash-settled Share-based Payment Transactions;
IFRS 1 (Amendment): Additional Exemptions for First-time Adopters;
Improvements to IFRS (2010);
IAS 32 (Amendment): Classification of Rights Issues;
IFRIC 19: Extinguishing Financial Liabilities with Equity instruments;
IFRIC 14 (Amendment): Prepayments of a Minimum Funding Requirement; and
IAS 24 (Amendment): Related Party Disclosures
IFRS 9: Financial Instruments.
In addition the following chapters in the FReM have been amended, effective for the 2010-11 financial year:
Chapter 6: Tangible non Current Assets
Chapter 8: Impairments
Chapter 11: Income and Expenditure
Chapter 13: Accounting for consolidated fund revenue
VisitBritain is currently assessing the impact of these amendments, revisions and interpretations on its financial statements but,
at this stage, does not consider that they will have a significant material effect save for any potential additional disclosure
requirements.
Chapter 11 of the FReM: Income and Expenditure is effective from 1 st April 2010. The alterations are expected to apply to the
group’s financial statements from that date. The main changes entail notional costs that are no longer recorded for cost of
capital. It is anticipated that the impact of this amendment will be limited to presentation only.
2 Significant accounting estimates and judgements
(a) Property, plant and equipment
Property, plant and equipment are measured at fair value depreciated over their useful lives to their estimated residual values.
Fair values, useful lives and residual values are based on management’s estimates and are periodically reviewed for continued
appropriateness. Changes to estimates can result in significant variations in carrying value and amounts charged to the
comprehensive statement of income and expenditure in specific periods.
(b) Inventories
The net realisable value of, and demand for, inventories are reviewed on a regular basis and particularly at the year end to
provide assurance that it is stated at the lower of cost and net realisable value. Factors that could impact estimated demand
and selling prices include the timing and success of innovations, competitor activities, supplier prices and economic trends
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