2016_Halma_ARA_160610_2

Accounting Policies
Accounting Policies
BASIS OF ACCOUNTING
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) adopted for use in
the European Union (EU) and therefore comply with Article 4 of the EU IAS legislation and with those parts of the Companies Act 2006
that are applicable to companies reporting under IFRS. The financial statements have also been prepared in accordance with IFRS
and International Financial Reporting Interpretations Committee (IFRIC) interpretations issued and effective at the time of preparing
these accounts.
The principal Group accounting policies are explained below and have been applied consistently throughout the years ended
2 April 2016 and 28 March 2015 other than those noted below.
The Group accounts have been prepared under the historical cost convention, except as described below under the heading
‘Derivative financial instruments and hedge accounting’.
NEW STANDARDS AND INTERPRETATIONS NOT YET APPLIED
At the date of authorisation of these financial statements, the following Standards and Interpretations that are potentially relevant to the
Group, and which have not been applied in these financial statements, were in issue but not yet effective (and in some cases had not
yet been adopted by the EU):
IFRS 9 ‘Financial Instruments: Classification and measurement’ – effective for accounting periods beginning on or after
1 January 2018.
IFRS 15 ‘Revenue from Contracts with Customers’ – effective for accounting periods beginning on or after 1 January 2018.
IFRS 16 ‘Leases’ – effective for accounting periods beginning on or after 1 January 2019.
IFRS 10 and IAS 28 (amended) ‘Sale or Contribution of Assets between an Investor and its Associate or Joint Venture’ – effective
for accounting periods beginning on or after 1 January 2016.
IAS 16 and IAS 38 (amended) ‘Clarification of Acceptable Methods of Depreciation and Amortisation’ – effective for accounting
periods beginning on or after 1 January 2016.
Annual Improvements 2012-2014 Cycle – effective for accounting periods beginning on or after 1 January 2016, specifically
amendments to IAS 34 ‘Interim Financial Reporting’.
Amendments to IAS 1 – effective for accounting periods beginning on or after 1 January 2016.
Amendments to IAS 27 ‘Equity Method in Separate Financial Statements’ – applicable for accounting periods beginning on or
after 1 January 2016.
Amendments to IFRS 11 ‘Accounting for Acquisitions of Interests in Joint Operations’ – applicable for accounting periods beginning
on or after 1 January 2016.
The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact
on the financial statements of the Group except for IFRS 9 ‘Financial Instruments’, which will introduce a number of changes in
the presentation of financial instruments, IFRS 15 ‘Revenue from Contracts with Customers’, which may change the timing of
revenue recognition for some companies within the Group, and IFRS 16 ‘Leases’, which will bring a significant portion of the
Group’s operating leases on balance sheet.
NEW STANDARDS AND INTERPRETATIONS APPLIED FOR THE FIRST TIME
The following Standards with an effective date of 1 January 2015 have been adopted without any significant impact on the amounts
reported in these financial statements:
IAS19 (amended) ‘Defined Benefit Plans: Employee Contributions’.
Annual Improvements 2010-2012 Cycle, specifically amendments to IFRS 2 ‘Share Based Payments’ and IFRS 8
‘Operating Segments’.
Annual Improvements 2011-2013, specifically amendments to IFRS 3 ‘Business Combinations’ and IFRS 13 ‘Fair Value
Measurement’.
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Halma plc Annual Report and Accounts 2016