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)
33 First time adoption of International Financial Reporting Standards (IFRS)
Changes in accounting policies- first-time adoption
This section describes the most significant changes arising from transition to IFRS, with reference to the financial information in
section 1.
(a) IAS 19 – Employee Benefits
Under UK GAAP, no provision is currently made for annual leave accrued. Under IAS 19, the expected cost of compensated
short-term absences should be recognised at the time the related service is provided. As a result, on transition to IFRS an
accrual of £286k has been recognised. A further accrual of £49k was recognised in 2009 resulting in a liability or £335k at 31 st
March 2009.
(b) IAS 37 – Provisions
Under UK GAAP, provisions were included within Creditors. Provisions are required to be classified as a separate liability on
the statement of financial position. Provisions have been reclassified accordingly.
(c) IAS 39 – Forward Foreign Currency Contracts
The group makes use of foreign currency derivatives (forward currency contracts) to protect its position on the purchase of
goods and services. Under UK GAAP, foreign currency derivatives were held off balance sheet. Under IAS 32 and IAS 39,
derivative contracts are valued at the statement of financial position and any resulting gains or losses are taken to the
comprehensive statement of income and expenditure. A financial asset of £37k and a liability of £132k has been recognised as
a result in 2009 (2008 – nil).
(d) IAS 19 – Employee Benefits
Under IFRS, the movement on defined benefit plan valuations are required to be classified as part of the income and
expenditure reserve. The reserve has been reclassified accordingly.
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