Annual Report & Accounts 2013 - Pinewood Studios

Pinewood Shepperton plc 51Annual Report & Accounts 2013Notes to the consolidated financial statements continued2. Accounting policies continuedChanges in accounting policy and disclosuresThe accounting policies adopted are consistent with those of the previous financial year with the exception of disclosuresrequired under IFRS 8 Operating segments (“IFRS 8”) following the Group’s amendment to its operational financialreporting structure (see Note 3 “Segment information and revenue analysis”) and the newly applicable accountingstandard detailed below:IFRS 7 Financial instruments: Disclosures on transfers of assets (Amendment)The IASB has issued an amendment to IFRS 7 Financial instruments: Disclosures, which increases the requireddisclosures in respect of risk exposures arising from transferred financial assets. The adoption of the amendmentdid not have any impact on the financial position or performance of the Group.The following are not effective at the date of these accounts but we expect them to have a material impact once theyhave been adopted:In May 2011, a package of five Standards on consolidation, joint arrangements, associates and disclosures was issued,including IFRS 10 Consolidated financial statements, IFRS 11 Joint arrangements, IFRS 12 Disclosures of interestsin other entities, IAS 27 Separate financial statements (as revised in 2011) and IAS 28 Investments in Associatesand Joint Ventures (as revised in 2011). The standards and amendments are effective for annual periods beginningon or after 1 January 2014 for companies preparing financial statements under IFRS as adopted by the EU, with earlierapplication permitted provided all these standards are applied at the same time.The key requirements of these five Standards are described below:IFRS 10 Consolidated financial statementsIFRS 10 replaces the parts of IAS 27 Consolidated and Separate Financial Statements that deal with consolidated financialstatements and builds on existing principles by identifying the concept of control as the determining factor in whetheran entity should be included within the consolidated financial statements. In addition, IFRS 10 includes a new definitionof control that contains three elements: (a) power over an investee, (b) exposure, or rights, to variable returns fromits involvement with the investee, and (c) the ability to use its power over the investee to affect the amount of theinvestor’s return.IFRS 11 Joint arrangementsIFRS 11 replaces IAS 31 Interests in Joint Ventures and provides for a more realistic reflection of joint arrangementsby focusing on the rights and obligations of the arrangement, rather than its legal form. There are two types of jointarrangement: joint operations and joint ventures. Joint operations arise where a joint operator has rights to theassets and obligations relating to the arrangement and hence accounts for its interest in assets, liabilities, revenueand expenses. Joint ventures arise where the joint operator has rights to the net assets of the arrangement and henceequity accounts for its interest. Proportional consolidation of joint ventures will no longer be permitted.IFRS 12 Disclosures of interests in other entitiesIFRS 12 includes the disclosure requirements for all forms of interests in other entities, including joint arrangements,associates, special purpose vehicles and other off-balance-sheet vehicles.Amendments to IFRS 10, 11 and 12 on transition guidanceThese amendments provide additional transition relief relating to the first time application of IFRSs 10, 11 and 12, limitingthe requirement to provide adjusted comparative information to only the preceding comparative period. For disclosuresrelated to unconsolidated structured entities, the amendments will remove the requirement to present comparativeinformation for periods before IFRS 12 is first applied.