AstraZeneca Annual Report and Form 20-F Information 2011

More documents

Recommendations

Info

Financial StatementsCompany Accounting PoliciesBasis of accountingThe Company Financial Statements are prepared under the historicalcost convention, modified to include revaluation to fair value of certainfinancial instruments as described below, in accordance with theCompanies Act 2006 and UK Generally Accepted Accounting Practice(UK GAAP). The Group Financial Statements are presented on pages142 to 191 and have been prepared in accordance with InternationalFinancial Reporting Standards as adopted by the EU and as issued bythe IASB and in accordance with the Group Accounting Policies setout on pages 146 to 149.The following paragraphs describe the main accounting policies underUK GAAP, which have been applied consistently.New accounting standardsThe Company has adopted the Amendments to FRS 25 (IAS 32)‘Financial Instruments: Presentation Classification of Rights Issues’,Abstract 47 ‘Extinguishing Financial Liabilities with Equity Instruments’and ‘Improvements to Financial Reporting Standards 2010’ (November2010) during the year. The adoptions had no impact on the net resultsor net assets of the Company.The Amendments to FRS 29 (IFRS 7) ‘Disclosures – Transfers ofFinancial Assets’ has been issued but not yet adopted by the Company.Foreign currenciesProfit and loss account items in foreign currencies are translatedinto US dollars at average rates for the relevant accounting periods.Assets and liabilities are translated at exchange rates prevailing at thedate of the Company Balance Sheet. Exchange gains and losses onloans and on short-term foreign currency borrowings and depositsare included within net interest payable. Exchange differences on allother transactions, except relevant foreign currency loans, are takento operating profit.TaxationThe charge for taxation is based on the result for the year and takesinto account taxation deferred because of timing differences betweenthe treatment of certain items for taxation and for accounting purposes.Full provision is made for the effects of these differences. Deferred taxassets are recognised where it is more likely than not that the amountwill be realised in the future. These estimates require judgements tobe made including the forecast of future taxable income. Deferred taxbalances are not discounted.Accruals for tax contingencies require management to makejudgements and estimates in relation to tax audit issues. Tax benefitsare not recognised unless the tax positions will probably be sustained.Once considered to be probable, management reviews each materialtax benefit to assess whether a provision should be taken against fullrecognition of that benefit on the basis of potential settlement throughnegotiation and/or litigation.Any recorded exposure to interest on tax liabilities is provided for in thetax charge. All provisions are included in creditors due within one year.InvestmentsFixed asset investments, including investments in subsidiaries, arestated at cost and reviewed for impairment if there are indications thatthe carrying value may not be recoverable.Share-based paymentsThe issuance by the Company to employees of its subsidiaries ofa grant over the Company’s options represents additional capitalcontributions by the Company to its subsidiaries. An additionalinvestment in subsidiaries results in a corresponding increase inshareholders’ equity. The additional capital contribution is based onthe fair value of the grant issued, allocated over the underlying grant’svesting period.Financial instrumentsLoans and other receivables are held at amortised cost. Long-termloans payable are held at amortised cost.LitigationThrough the normal course of business, the AstraZeneca Group isinvolved in legal disputes, the settlement of which may involve costto the Company. Provision is made where an adverse outcome isprobable and associated costs can be estimated reliably. In othercases, appropriate descriptions are included.194 Financial StatementsAstraZeneca Annual Report and Form 20-F Information 2011
Notes to the Company Financial Statements1 Fixed asset investmentsShares$mInvestments in subsidiariesCost and net book value at 1 January 2011 16,465 8,767 25,232Transfer to current assets – (1,747) (1,747)Capital contribution (38) – (38)Exchange – (25) (25)Amortisation – (1) (1)Cost and net book value at 31 December 2011 16,427 6,994 23,421Loans$mTotal$mA list of principal subsidiaries is included on page 191.2 Non-trade creditors2011$m2010$mAmounts due within one yearShort-term borrowings (unsecured) 14 12Other creditors 170 169Amounts owed to Group undertakings 3,033 133,217 1943 LoansRepaymentdates2011$m2010$mAmounts due within one yearInterest-bearing loans and borrowings (unsecured)US dollars5.4% Callable bond 2012 1,749 –Amounts due after more than one yearAmounts owed to subsidiaries (unsecured)US dollars7.2% Loan 2023 283 283Interest-bearing loans and borrowings (unsecured)US dollars5.4% Callable bond 2012 – 1,7475.4% Callable bond 2014 749 7495.9% Callable bond 2017 1,744 1,7446.45% Callable bond 2037 2,716 2,718Euros5.125% Non-callable bond 2015 969 993Pounds sterling5.75% Non-callable bond 2031 536 5356,714 8,486Loans or instalments thereof are repayable:After five years from balance sheet date 5,279 5,280From two to five years 1,718 1,742From one to two years – 1,747Within one year 1,749 –Total unsecured 8,746 8,7692011$m2010$mFinancial StatementsAll loans are at fixed interest rates. Accordingly the fair values of the loans will change as market rates change. However, since the loans areheld at amortised cost, changes in interest rates and the credit rating of the Company do not have any effect on the Company’s net assets.AstraZeneca Annual Report and Form 20-F Information 2011 Financial Statements 195
Page 1 and 2:
healthAstraZeneca Annual Reportand
Page 3 and 4:
Financial summary$33.6bnSales down
Page 5 and 6:
China: We announcedour decision to
Page 7 and 8:
OverviewOperational overview7979 pr
Page 9 and 10:
Chairman’s StatementI would like
Page 11 and 12:
Chief Executive Officer’s ReviewA
Page 13 and 14:
The process of getting a drug to ma
Page 15 and 16:
OverviewnovationInnovation drives p
Page 17 and 18:
Our Strategy and PerformanceMore pe
Page 19 and 20:
Using the full range of innovative
Page 21 and 22:
Our strategyMissionto make the most
Page 23 and 24:
Our strategic priorities to 2014Our
Page 25 and 26:
Our performance in 2011Our performa
Page 27 and 28:
Business shapePeopleResponsible bus
Page 29 and 30:
Strategy and PerformanceaborationIm
Page 31 and 32:
Delivering our strategyOur strategy
Page 33 and 34:
Development projects20112010 129342
Page 35 and 36:
Investing in capabilitiesA core com
Page 37 and 38:
Patent expiries for our key markete
Page 39 and 40:
our Established Markets footprint i
Page 41 and 42:
Product qualityWe are committed to
Page 43 and 44:
We have a global approach, supporte
Page 45 and 46:
ComplianceWe ensure a culture of et
Page 47 and 48:
tegrityBusiness ReviewWe are dedica
Page 49 and 50:
Delivering our strategyResponsible
Page 51 and 52:
India has the fastest growing numbe
Page 53 and 54:
ProtestsAstraZeneca acknowledges th
Page 55 and 56:
Also in 2011, the DIHR in collabora
Page 57 and 58:
healthcollaborationRaising breast c
Page 59 and 60:
Pipeline by Therapy Area at 31 Dece
Page 62 and 63:
Therapy Area ReviewIn September, we
Page 64 and 65:
Therapy Area ReviewGastrointestinal
Page 66 and 67:
Therapy Area ReviewInfectionTherapy
Page 68 and 69:
Therapy Area ReviewIn the pipelineI
Page 70 and 71:
Therapy Area ReviewOur financial pe
Page 72 and 73:
Therapy Area ReviewOncologyTherapy
Page 74 and 75:
Therapy Area Reviewendpoints of pro
Page 76 and 77:
Therapy Area ReviewOur financial pe
Page 78 and 79:
healthinnovationReducing the number
Page 80 and 81:
Geographical ReviewUSAstraZeneca is
Page 82 and 83:
Geographical ReviewEmerging Markets
Page 84 and 85:
Disciplined execution of our strate
Page 86 and 87:
Financial ReviewMeasuring performan
Page 88 and 89:
Financial ReviewResults of operatio
Page 90 and 91:
Financial ReviewFinancial position
Page 92 and 93:
Financial ReviewCapitalisation and
Page 94 and 95:
Financial ReviewResults of operatio
Page 96 and 97:
Financial ReviewSensitivity analysi
Page 98 and 99:
Financial Reviewover the performanc
Page 100 and 101:
healthcollaborationFighting the ris
Page 102 and 103:
Board of Directors and Senior Execu
Page 104 and 105:
Board of Directors and Senior Execu
Page 106 and 107:
Corporate Governance ReportOperatio
Page 108 and 109:
Corporate Governance ReportThe Boar
Page 110 and 111:
Corporate Governance ReportDuring 2
Page 112 and 113:
Corporate Governance ReportBusiness
Page 114 and 115:
Corporate Governance ReportPolitica
Page 116 and 117:
Directors’ Remuneration ReportDav
Page 118 and 119:
Directors’ Remuneration ReportVar
Page 120 and 121:
Directors’ Remuneration ReportAdd
Page 122 and 123:
Directors’ Remuneration ReportSum
Page 124 and 125:
Directors’ Remuneration ReportSum
Page 126 and 127:
Directors’ Remuneration ReportIn
Page 128 and 129:
Directors’ Remuneration ReportPer
Page 130 and 131:
Directors’ Remuneration ReportGai
Page 132 and 133:
RiskManagement reporting and assura
Page 134 and 135:
RiskCommercialisation and business
Page 136 and 137:
RiskCommercialisation and business
Page 138 and 139:
RiskSupply chain and delivery risks
Page 140 and 141:
RiskEconomic and financial risks co
Page 142 and 143:
Financial StatementsPreparation of
Page 144 and 145:
Financial StatementsConsolidated St
Page 146 and 147: Financial StatementsConsolidated St
Page 148 and 149: Financial StatementsGroup Accountin
Page 150 and 151: Financial StatementsProperty, plant
Page 152 and 153: Financial StatementsNotes to the Gr
Page 154 and 155: Financial Statements3 Finance incom
Page 156 and 157: Financial Statements4 Taxation cont
Page 158 and 159: Financial Statements6 Segment infor
Page 160 and 161: Financial Statements9 Intangible as
Page 162 and 163: Financial Statements10 Other invest
Page 164 and 165: Financial Statements15 Financial in
Page 166 and 167: Financial Statements15 Financial in
Page 168 and 169: Financial Statements18 Post-retirem
Page 170 and 171: Financial Statements18 Post-retirem
Page 172 and 173: Financial Statements20 Share capita
Page 174 and 175: Financial Statements23 Financial ri
Page 176 and 177: Financial Statements23 Financial ri
Page 178 and 179: Financial Statements24 Employee cos
Page 184 and 185: Financial Statements25 Commitments
Page 192 and 193: Financial Statements26 LeasesTotal
Page 194 and 195: Financial StatementsIndependent Aud
Page 198 and 199: Financial Statements4 ReservesShare
Page 200 and 201: Financial StatementsGroup Financial
Page 202 and 203: Development PipelineNCEsPhase III/R
Page 204 and 205: Development PipelineNCEsPhases I an
Page 206 and 207: Shareholder Information> For shares
Page 208 and 209: Shareholder InformationDocuments on
Page 210 and 211: Corporate InformationHistory and de
Page 212 and 213: GlossaryThe following abbreviations
Page 214 and 215: Index2011 performance summary 23Acc
Page 216: Contact informationRegistered offic
show all

AstraZeneca Annual Report and Form 20-F Information 2011

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?