2012 annual report - TLA Worldwide

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44 TLA Worldwide PLCPrincipalaccountingpoliciesGeneral informationTLA Worldwide PLC (the Company) is incorporated in the United Kingdom under theCompanies Act. The Company and its subsidiaries’ (together the “Group”) principal activitiesare set out as part of the chief executive and finance review on pages 8 to 17.These financial statements are presented in US dollars because that is the currency of theprimary economic environment in which the Group operates.Adoption of new and revised standardsThe following IFRIC interpretations and amendments to existing standards and new standardshave been adopted in the current year but have not impacted the reporting results of thefinancial position:IAS 12IFRS 7Income taxes (amended) deferred tax: recovery of underlying assetsFinancial instruments: Disclosures: Transfers of Financial AssetsAt the date of authorisation of these financial statements, the following standards andinterpretations, which have not been applied in these financial statements, were in issuebut not yet effective (and in some cases had not yet been adopted by the EU):adoption of new and revised standardsIFRS 1 (amended) Severe Hyperinflation and Removal of Fixed Dates for First Time AdoptersIFRS 7 (amended) Financial instruments: Disclosures: enhancing disclosures aboutoffsetting financial assets and financial liabilities and disclosures about the initialapplication of IFRS 9IFRS 9 Financial InstrumentsIFRS 10 Consolidated Financial StatementsIFRS 11 Joint arrangementsIFRS 12 Disclosure of Interests in Other EntitiesIFRS 13 Fair Value MeasurementIAS 1 (amended) Presentation of Items of Other Comprehensive IncomeIAS 19 (revised) Employee BenefitsIAS 27 (revised) Separate Financial StatementsIAS 28 (revised) Investments in Associates and Joint VenturesIFRIC 20 Stripping Costs in the Production Phase of a Surface MineThe directors anticipate that the adoption of these standards and interpretations in futureperiods will have no material impact on the financial statements of the Group.
Annual Report 201245The accounting policies set out below have, unless otherwise stated, been applied consistentlyto all periods presented in these consolidated financial statements.Judgements made by the directors in the application of these accounting policies that havea significant effect on the consolidated financial statements together with estimates withsignificant risk of material adjustment in the next year are discussed in note 26.Going concernThe directors have reviewed the forecasts for the years ending 31 December 2013 and 31December 2014. The directors consider the forecasts to be prudent and have assessed theimpact on the Group’s cash flow, facilities and headroom within its banking covenants. Further,the directors have assessed the future funding requirements of the Group and compared thelevel of borrowing facilities. Based on this work, the directors are satisfied that Group hasadequate resources to continue in operational existence for the foreseeable future despite thecurrent economic uncertainty. For this reason they continue to adopt the going concern basisin preparing the financial statements.basis of accountingThe financial statements have been prepared in accordance with International FinancialReporting Standards (IFRS). The financial statements have also been prepared in accordancewith IFRSs adopted by the European Union and therefore the Group financial statementscomply with Article 4 of the EU IAS regulation.The financial statements have been prepared on the historical cost basis except for the revaluationof financial instruments. Historical cost is generally based on the fair value of the considerationgiven in exchange for the assets. The principal accounting policies are set out below:basis of consolidationThe consolidated financial statements incorporate the financial statements of the Companyand entities controlled by the Company (its subsidiaries) made up to 31 December each year.Control is achieved where the Company has the power to govern the financial and operatingpolicies of an investee entity so as to obtain benefits from its activities.On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measuredat their fair values at the date of acquisition. Any excess of the cost of acquisition overthe fair values of the identifiable net assets acquired is recognised as goodwill. Any deficiencyof the cost of acquisition below the fair values of the identifiable net assets acquired(i.e. discount on acquisition) is credited to the income statement in the period of acquisition.The results of subsidiaries acquired or disposed of during the year are included in theconsolidated income statement from the effective date of acquisition or up to the effectivedate of disposal, as appropriate. Where necessary, adjustments are made to the financialstatements of subsidiaries to bring the accounting policies used into line with those usedby the group. All intra-group transactions, balances, income and expenses are eliminatedon consolidation.Business combinationsAcquisitions of subsidiaries and businesses are accounted for using the acquisition method.The consideration for each acquisition is measured at the aggregate of the fair values (at thedate of exchange) of assets given, liabilities incurred or assumed, and equity instrumentsissued by the Group in exchange for control of the acquiree. Acquisition-related costs arerecognised in profit or loss as incurred.Where applicable, the consideration for the acquisition includes any asset or liability resultingfrom a contingent consideration arrangement, measured at its acquisition-date fair value.Subsequent changes in such fair values are adjusted against the cost of acquisition wherethey qualify as measurement period adjustments (see below). All other subsequent changesin the fair value of contingent consideration classified as an asset or liability are accountedfor in accordance with relevant IFRSs. Changes in the fair value of contingent considerationclassified as equity are not recognised.These financialstatements arepresented in USdollars because thatis the currency of theprimary economicenvironment in whichthe Group operates
Page 3 and 4: ContentsHighlights 2Chairman’s st
Page 6 and 7: 4 TLA Worldwide PLCOperationalhighl
Page 8 and 9: 6 TLA Worldwide PLCChairman’s sta
Page 10 and 11: 8 TLA Worldwide PLCChief Executive
Page 13 and 14: Annual Report 201211TLA client Lolo
Page 15 and 16: TLA client CC Sebathia13
Page 18 and 19: 16 TLA Worldwide PLCTrading for the
Page 20 and 21: 18TLA client Jim Furyk
Page 22 and 23: 20 TLA Worldwide PLCBoard of direct
Page 24 and 25: 22 TLA Worldwide PLCPrincipal risks
Page 26 and 27: 24 TLA Worldwide PLCDirectors’ in
Page 28 and 29: 26 TLA Worldwide PLCDirectors’rem
Page 30 and 31: 28 TLA Worldwide PLCThe performance
Page 32 and 33: 30 TLA Worldwide PLCCorporategovern
Page 34 and 35: 32 TLA Worldwide PLCThe directors h
Page 36 and 37: 34 TLA Worldwide PLCDirectors’res
Page 38 and 39: 36 TLA Worldwide PLCIndependent aud
Page 40 and 41: 38 TLA Worldwide PLCGroup incomesta
Page 42 and 43: 40 TLA Worldwide PLCGroup balance s
Page 44 and 45: 42 TLA Worldwide PLCGroup statement
Page 48 and 49: 46 TLA Worldwide PLCWhere a busines
Page 50 and 51: 48 TLA Worldwide PLCsmallest identi
Page 52 and 53: 50 TLA Worldwide PLCFinancial asset
Page 54 and 55: 52 TLA Worldwide PLCTrade receivabl
Page 56 and 57: 54 TLA Worldwide PLCNotes to thecon
Page 58 and 59: 56 TLA Worldwide PLCThe accounting
Page 60 and 61: 58 TLA Worldwide PLC5. Auditor’s
Page 62 and 63: 60 TLA Worldwide PLC9. Deferred tax
Page 64: 62 TLA Worldwide PLC11. Other intan
Page 67 and 68: Annual Report 201265At 31 December
Page 69 and 70: Annual Report 20126716. Borrowings2
Page 71 and 72: Annual Report 20126919. Operating l
Page 73 and 74: Annual Report 20127123. Notes of ca
Page 75 and 76: Annual Report 201273equity holders
Page 77 and 78: Annual Report 20127528. Post-balanc
Page 79 and 80: Annual Report 201277Standards on Au
Page 81 and 82: Annual Report 201279Notes to thepar
Page 83 and 84: Annual Report 2012813. Debtors2012
Page 85 and 86: Annual Report 201283Their aggregate
Page 87 and 88: Annual Report 2012851.Adjusted EBIT

2012 annual report - TLA Worldwide

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