Cohesive Consistent Confident

Henry Boot PLC
Annual Report and Financial Statements for the year ended 31 December 2015
www.henryboot.co.uk
Stock Code: BHY
Financial Statements
Principal Accounting Policies
for the year ended 31 December 2015
SAYE share options are treated as cancelled when employees cease to contribute to the scheme. This results in accelerated
recognition of the expenses that would have arisen over the remainder of the original vesting period.
Details regarding the determination of the fair value of share-based transactions are set out in note 30.
Tax
The tax charge on the profit or loss for the year comprises the sum of tax currently payable and any deferred tax movements in the
year.
Tax currently payable is based on taxable profit for the year adjusted for any tax payable or repayable in respect of earlier years.
Taxable profit differs from net profit as reported in the Statement of Comprehensive Income because it excludes items of income or
expense that are taxable or deductible in other years and items that may never be taxable or deductible.
The Group’s liability for current taxation is calculated using tax rates that have been enacted or substantively enacted by the
reporting date.
Corporation tax liabilities of wholly owned subsidiary companies are transferred to and paid by the Parent Company and credit is
given by the Parent Company for loss relief surrendered.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities
in the Financial Statements and the corresponding tax bases used in computing taxable profits.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profits or gains will be available to allow all or part of the assets to be recovered.
The carrying value of the Group’s investment property is assumed to be realised by sale and the deferred tax is then calculated
based on the respective temporary differences and tax consequences arising from this assumption.
Deferred tax is calculated at tax rates that are expected to apply in the period when the liability is settled or the asset is realised.
Deferred tax is charged or credited in the Statement of Comprehensive Income, except when it relates to items charged or credited
directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and deferred tax liabilities are offset where the Group has a legally enforceable right to do so and when the
deferred tax assets and liabilities relate to tax levied by the same tax authority where there is an intention to settle the balances on a
net basis.
Share capital
Ordinary share capital is classified as equity. Preference share capital is classified as equity as it is non-redeemable or is redeemable
only at the Company’s option and any dividends are discretionary. Dividends on preference share capital classified as equity are
recognised as distributions within equity.
Financial instruments
The Group retains such financial instruments as are required, together with retained earnings, in order to finance the Group’s
operations.
Financial assets or financial liabilities are recognised by the Group in the Statement of Financial Position only when the Group
becomes a party to the contractual provisions of the instrument.
The principal financial instruments are:
• trade and other receivables which are recognised and carried at the lower of their original invoiced value and recoverable amount
- where the time value of money is material, receivables are carried at amortised cost using the effective interest rate method (see
Interest income and expense on page 98). Provision is made when there is objective evidence that the Group will not be able to
recover balances in full. Balances are written off when the probability of recovery is assessed as being remote. Should an amount
previously written off prove recoverable the amount written off is reversed through the Statement of Comprehensive Income to
the extent that the amount written back does not exceed the amortised cost had the write-off not been recognised;
• cash and cash equivalents, which comprise cash in hand, demand deposits and other short-term highly liquid investments that
are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value with an original
maturity of three months or less;
• trade and other payables which are on normal credit terms, are not interest bearing and are stated at their nominal values - where
the time value of money is material, payables are carried at amortised cost using the effective interest rate method (see Interest
income and expense on page 98);
• borrowings - see on next page; and
• derivatives - see on next page.
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