74Independent Auditors’ <strong>Report</strong> to the Members of The <strong>Manchester</strong> <strong>Airport</strong> Group PLCWe have audited the parent company financial statements of The <strong>Manchester</strong> <strong>Airport</strong> Group PLC for the year ended 31 March 20<strong>11</strong> set outon pages 75 to 80. The financial reporting framework that has been applied in their preparation is applicable law <strong>and</strong> UK AccountingSt<strong>and</strong>ards (UK Generally Accepted Accounting Practice).In addition to our audit of the financial statements, the directors have engaged us to audit the information in the Directors’ Remuneration<strong>Report</strong> that is described as having been audited, which the directors have decided to prepare (in addition to that required to be prepared)as if the company were required to comply with the requirements of Schedule 8 to the Companies Act 2006 The Large <strong>and</strong> Medium-sizedCompanies <strong>and</strong> Groups (<strong>Accounts</strong> <strong>and</strong> <strong>Report</strong>s) Regulations 2008 (SI 2008 No. 410).This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006<strong>and</strong>, in respect of the separate opinion in relation to the Directors’ Remuneration <strong>Report</strong>, on terms that have been agreed. Our audit workhas been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’sreport <strong>and</strong>, in respect of the separate opinion in relation to the Directors’ Remuneration <strong>Report</strong>, those matters that we have agreed to stateto them in our report, <strong>and</strong> for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyoneother than the company <strong>and</strong> the company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.Respective responsibilities of directors <strong>and</strong> auditorAs explained more fully in the Directors’ Responsibilities Statement set out on page 40, the directors are responsible for the preparation ofthe parent company financial statements <strong>and</strong> for being satisfied that they give a true <strong>and</strong> fair view. Our responsibility is to audit, <strong>and</strong>express an opinion on, the parent company financial statements in accordance with applicable law <strong>and</strong> International St<strong>and</strong>ards onAuditing (UK <strong>and</strong> Irel<strong>and</strong>). Those st<strong>and</strong>ards require us to comply with the Auditing Practices Board’s (APB’s) Ethical St<strong>and</strong>ards forAuditors.Scope of the audit of the financial statementsA description of the scope of an audit of financial statements is provided on the APB’s web-site at www.frc.org.uk/apb/scope/private.cfm.Opinion on financial statementsIn our opinion the parent company financial statements: give a true <strong>and</strong> fair view of the state of the Company’s affairs as at 31 March 20<strong>11</strong> <strong>and</strong> of its loss for the year then ended; have been properly prepared in accordance with UK Generally Accepted Accounting Practice; <strong>and</strong> have been prepared in accordance with the requirements of the Companies Act 2006.Opinion on other matters prescribed by the Companies Act 2006 <strong>and</strong> under the terms of our engagementIn our opinion: the part of the Directors’ Remuneration <strong>Report</strong> which we were engaged to audited has been properly prepared in accordance withSchedule 8 to the Companies Act 2006 The Large <strong>and</strong> Medium-sized Companies <strong>and</strong> Groups (<strong>Accounts</strong> <strong>and</strong> <strong>Report</strong>s) Regulations2008, as if those requirements were to apply to the company;<strong>and</strong> the information given in the Directors’ <strong>Report</strong> for the financial year for which the financial statements are prepared is consistent with theparent company financial statements.Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006 <strong>and</strong> the terms of our engagement require usto report to you if, in our opinion: adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been receivedfrom branches not visited by us; or the parent company financial statements <strong>and</strong> the part of the Directors’ Remuneration <strong>Report</strong> to be audited are not in agreement with theaccounting records <strong>and</strong> returns; or certain disclosures of directors’ remuneration specified by law are not made; or we have not received all the information <strong>and</strong> explanations we require for our audit.Other matterWe have reported separately on the group financial statements of The <strong>Manchester</strong> <strong>Airport</strong> Group PLC for the year ended 31 March 20<strong>11</strong>.Jonathan Hurst (Senior Statutory Auditor)for <strong>and</strong> on behalf of KPMG LLP, Statutory AuditorChartered AccountantsSt James’ Square<strong>Manchester</strong>M2 6DS4 July 20<strong>11</strong>The <strong>Manchester</strong> <strong>Airport</strong> Group PLC <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Accounts</strong> <strong>2010</strong>-<strong>11</strong>
Accounting Policies 75Accounting PoliciesThese financial statements are prepared on a going concern basis <strong>and</strong> in accordance with applicable accounting st<strong>and</strong>ards in the UnitedKingdom <strong>and</strong> the Companies Act 2006.The accounting policies that the Company has adopted in respect of the material items shown in the Balance Sheet, <strong>and</strong> also todetermine the profit <strong>and</strong> loss are shown below. Unless stated otherwise, these have been applied on a consistent basis.The Company has taken advantage of the exemption from preparing a Cash Flow Statement under the terms of Financial <strong>Report</strong>ingSt<strong>and</strong>ard ('FRS') 1 (revised 1996). Furthermore, the Company is also exempt under the terms of FRS 8 from disclosing related partytransactions with entities that are part of The <strong>Manchester</strong> <strong>Airport</strong> Group PLC.Basis of accountingThe financial statements have been prepared under the historical cost convention.Intercompany accountingIntercompany balances are stated at historic cost.Tangible fixed assetsTangible fixed assets are stated at cost less accumulated depreciation.Depreciation is provided on a straight-line basis over the expected useful lives of tangible fixed assets as follows:YearsPlant <strong>and</strong> machinery 5 – 30Motor vehicles 3 – 7Fixed asset investmentsFixed asset investments are stated at cost less any provision for diminution in value. Costs incurred to acquire investments are capitalisedwithin the cost of the investment.The <strong>Manchester</strong> <strong>Airport</strong> Group PLC <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Accounts</strong> <strong>2010</strong>-<strong>11</strong>
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