continued - St James's Place

Notes to the IFRS Basis Financial Statements1. BASIS OF PREPARATIONThis condensed set of consolidated half year financial statements for the six months ended 30 June 2011, whichcomprise the half year financial statements of St. James’s Place plc (‘the Company’) and its subsidiaries(together referred to as ‘the Group’), has been prepared in accordance with IAS 34 Interim Financial Reporting asadopted by the EU and should be read in conjunction with the full year 2010 Report & Accounts.Going ConcernThe Company’s business activities, together with the factors likely to affect its future development,performance and position are set out in the Interim Statement on pages 5 to 6. The financial position of theCompany, its cash flows, liquidity position and borrowing facilities are described in the Financial Commentaryon pages 7 to 28.As shown on page 23 of the Financial Commentary, the Group’s capital position is strong and well in excess ofregulatory requirements. The long-term nature of the business results in considerable positive cash flows,arising from existing business. As a consequence, the Directors believe that the Company is well placed tomanage its business risks successfully.The Directors confirm that they are satisfied that the Company and the Group have adequate resources tocontinue in business for the foreseeable future. For this reason, they continue to adopt the going concern basisin preparing the financial statements.2. SIGNIFICANT ACCOUNTING POLICIESAs required by the Disclosure and Transparency Rules of the Financial Services Authority, this condensed setof financial statements has been prepared applying the accounting policies and standards that were applied inthe preparation of the Group’s published consolidated financial statements for the year ended 31 December2010. These were prepared and approved by the Directors in accordance with International FinancialReporting Standards as adopted by the EU and interpretations issued by the International Financial ReportingInterpretations Committee.The following new and amended standards, which the Group have adopted as of 1 January 2011, have not hadany material impact on the Group’s reported results:IAS 24IAS 27IFRS 7Revised – Related Party DisclosuresAmendment – Consolidated and Separate Financial StatementsAmendment – Financial Instruments: Disclosures46St. James’s Place plc Registered No. 3183415