20645_Scapa_AR_160504

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STATEMENT OF OF ACCOUNTING POLICIES POLICIES BASIS OF ACCOUNTING These financial statements have been prepared on a going concern basis under the historical cost convention, as modified by revaluation of certain financial instruments in accordance with the Companies Act 2006 and applicable UK accounting standards. A summary of the Company’s principal accounting policies is set out below. These have been applied consistently throughout the year and prior year. GOING CONCERN The Directors have at the time of approving the financial statements a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. Further detail is contained in the Directors’ Report on page [57]. TANGIBLE FIXED ASSETS Tangible fixed assets are stated at cost less cumulative depreciation and impairment. Depreciation is provided on the basis of writing off the cost of the relevant assets over their expected useful lives. The Company applies the straight-line method. The effect is to reduce the cost of plant, machinery and fixtures to estimated residual value over a period of 5–20 years. TAXATION Current tax is provided at amounts expected to be paid or recovered using the tax rates and laws that have been substantively enacted by the Balance Sheet date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the Balance Sheet date. Timing differences are differences between the Company’s taxable profits and losses and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements. A net deferred tax asset is regarded as recoverable and therefore recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse based on tax rates and laws that have been substantively enacted by the Balance Sheet date. Deferred tax is measured on a nondiscounted basis. DIVIDENDS Dividends proposed by the Board are recognised in the financial statements when they have been approved by shareholders at the AGM. Interim dividends are recognised when they are paid. PROVISIONS Provisions are made in accordance with FRS 12 where an obligation exists for a future liability in respect of a past event and where the amount of obligation can be reliably estimated. Provision is made for vacant and sub-let leasehold properties to the extent that future rental payments are expected to exceed future rental income and for all other known liabilities which exist at the Balance Sheet date, based on management’s best estimate as to the cost of settling these liabilities. PENSION COSTS For defined benefit schemes the amounts charged to operating profit are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the profit and loss account if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. Actuarial gains and losses are recognised immediately in the Statement of Total Recognised Gains and Losses. For defined benefit schemes, the Company recognises plan assets where they are separable, solely for payment to the fund or to fund employee benefits, not available to the Company’s creditors in bankruptcy and where the assets cannot be returned to the Company unless all employee benefit obligations are met. Defined benefit schemes are funded, with the assets of the scheme held separately from those of the Group, in separate trustee-administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained annually and are updated at each Balance Sheet date. The resulting defined benefit asset or liability, net of the related deferred tax, is presented separately after other net assets on the face of the Balance Sheet. For defined contribution schemes the amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet. 114 SCAPA GROUP PLC ANNUAL REPORT AND ACCOUNTS 2016 109 Annual Report and Accounts 2016 Scapa Group plc
STATEMENT OF ACCOUNTING POLICIES CONTINUED FINANCIAL STATEMENTS FIXED ASSET INVESTMENTS Fixed asset investments are stated at cost, less provision for any impairment in value. Where circumstances indicate that there may have been impairment in the carrying value of a tangible or intangible fixed asset, an impairment review is carried out using cash flows from approved forecasts and projections discounted at the Group’s weighted average cost of capital. SHARE-BASED PAYMENTS The fair value of employee share option plans is calculated using the appropriate valuation models in accordance with FRS 20 Share-Based Payments. The resulting cost is charged to the profit and loss account over the vesting period of the options. The value of the charge is adjusted to reflect expected and actual levels of options vesting. Where share options are granted to employees of subsidiary companies, the cost is debited to the carrying value of the subsidiary investments. FOREIGN CURRENCIES Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at the rate of exchange at the Balance Sheet date. Exchange differences on borrowings (including differences arising due to currency swaps) taken out to hedge overseas equity investments and on long-term loans which are considered equivalent to equity are taken to the translation reserve. All other differences are taken to the profit and loss account. CASH FLOW STATEMENT The Company is a wholly owned subsidiary of Scapa Group plc and is included in the consolidated financial statements of Scapa Group plc which are publicly available. Consequently, the Company has taken advantage of the exemption from preparing a cash flow statement under the terms of FRS 1 Cash Flow Statements (revised 1996). CONSOLIDATION Consolidated accounts for the Company are prepared under International Accounting Standards and as a result these financial statements present information about the Company only. RELATED PARTIES The Directors’ Annual Remuneration Report can be found in the Annual Report on pages [51 to 56]. The pension scheme is a related party to the Company; there were no contributions outstanding at the year end. There are no other related party transactions. The Company is exempt under the terms of FRS 8 from disclosing related party transactions with entities that are wholly owned subsidiaries. 110 Scapa Group plc Annual Report and Accounts 2016 115 ANNUAL REPORT AND ACCOUNTS 2016 SCAPA GROUP PLC
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STRATEGIC VALUE CREATION SCAPA GROU
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FINANCIAL HIGHLIGHTS STRATEGIC REPO
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STRATEGIC REPORT STRATEGIC PROGRESS
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STRATEGIC REPORT 2016 STRATEGIC GOA
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STRATEGIC REPORT RISK MANAGEMENT MO
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PRINCIPAL RISKS AND UNCERTAINTIES S
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STRATEGIC REPORT Risk Accountable E
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VIABILITY STATEMENT STRATEGIC REPOR
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STRATEGIC REPORT Healthcare has del
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STRATEGIC REPORT We continue to inv
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STRATEGIC REPORT Umquasperum unt qu
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STRATEGIC REPORT OUR STRATEGY 2015/
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STRATEGIC REPORT The underlying eff
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STRATEGIC REPORT OUR EXECUTIVE TEAM
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STRATEGIC REPORT ENVIRONMENTAL PERF
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CORPORATE GOVERNANCE of Group Finan
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CORPORATE GOVERNANCE M C BUZZACOTT
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CORPORATE GOVERNANCE The Chief Exec
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CORPORATE GOVERNANCE To assess the
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CORPORATE GOVERNANCE REPORT OF THE
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REPORT OF THE REMUNERATION COMMITTE
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CORPORATE GOVERNANCE REMUNERATION C
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DIRECTORS’ ANNUAL REMUNERATION RE
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CORPORATE GOVERNANCE HISTORICAL CHI
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20645_Scapa_AR_160504

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