Annual report: Period Ended 31 December 2012 - Invesco Perpetual

36 City Merchants High Yield Trust Limited
Statement of Directors’ Responsibilities
in respect of the preparation of financial statements
The Directors are responsible for preparing the annual financial report in accordance with applicable
laws and regulations.
Company law requires the Directors to prepare financial statements for each financial period. Under
that law the Directors have elected to prepare the financial statements in accordance with
International Financial Reporting Standards (IFRSs) as adopted by the European Union. The financial
statements are required by law to give a true and fair view of the state of affairs of the Company and
of the profit or loss of the Company for that period.
International Accounting Standard 1 requires that financial statements present fairly for each financial
year the Company’s financial position, financial performance and cash flows. This requires the
faithful representation of the effects of transactions, other events and conditions in accordance with
the definitions and recognition criteria for assets, liabilities, income and expenses set out in the
International Accounting Standards Board’s ‘Framework for the preparation and presentation of
financial statements’. In virtually all circumstances, a fair presentation will be achieved by
compliance with all applicable IFRSs.
In preparing these financial statements, the Directors are required to:
• properly select and apply accounting policies and then apply them consistently;
• present information, including accounting policies, in a manner that provides relevant, reliable,
comparable and understandable information;
• provide additional disclosures when compliance with specific requirements in IFRSs are
insufficient to enable users to understand the impact of particular transactions, other events and
conditions on the entity’s financial position and financial performance; and
• make an assessment of the Company’s ability to continue as a going concern.
The Directors are responsible for keeping proper accounting records that disclose with reasonable
accuracy at any time the financial position of the Company and which enable them to ensure that
the accounts comply with the Companies (Jersey) Law 1991. They are also responsible for
safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Directors’
Report (including a Business Review) and a Corporate Governance Statement that comply with that
law and those regulations.
The Directors of the Company, each confirm to the best of their knowledge that:
• the financial statements, which have been prepared in accordance with applicable accounting
standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of
the Company;
• this annual financial report includes a fair review of the development and performance of the
business and the position of the Company, together with a description of the principal risks and
uncertainties that it faces; and
• the annual report and accounts, taken as a whole, are fair, balanced and understandable and
provide the information necessary for shareholders to assess the Company’s performance,
business model and strategy.
Clive Nicholson
Chairman
Signed on behalf of the Board of Directors
28 March 2013