BT 2013 Annual Report Download - page 95

Governance
Governance 93
Governance
Governance 93
Directors’ information
Statement of Directors’ responsibilities
The directors are responsible for preparing the Annual Report, the
Report on Directors’ Remuneration and the Financial statements in
accordance with applicable law and regulations. Company law requires
the directors to prepare financial statements for each financial year.
Under that law the directors have elected to prepare the consolidated
financial statements in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union, and the
parent company financial statements in accordance with UK GAAP. In
preparing the consolidated financial statements, the directors have also
elected to comply with IFRS, issued by the International Accounting
Standards Board (IASB). Under company law the directors must not
approve the financial statements unless they are satisfied that they give
a true and fair view of the state of affairs of the group and the company
and of the profit or loss of the group for that period. In preparing these
financial statements, the directors are required to:
— select suitable accounting policies and then apply them consistently
— make judgements and accounting estimates that are reasonable and
prudent
— state whether IFRS, as adopted by the European Union, and IFRS
issued by IASB and applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and explained
in the consolidated and parent company financial statements
respectively
— prepare the financial statements on the going concern basis unless
it is inappropriate to presume that the company will continue in
business.
The directors are responsible for keeping adequate accounting records
that are sufficient to show and explain the company’s transactions and
disclose with reasonable accuracy at any time the financial position of
the company and the group and enable them to ensure that the financial
statements and the Report on Directors’ Remuneration comply with
the Companies Act 2006 and, as regards the consolidated financial
statements, Article 4 of the IAS Regulation. They are also responsible for
safeguarding the assets of the company and the group and hence for
taking reasonable steps for the prevention and detection of fraud and
other irregularities.
The directors are responsible for the maintenance and integrity of the
corporate and financial information included on the company’s website.
Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other
jurisdictions.
Each of the directors, whose names and functions are listed on pages 65
to 66 confirms that, to the best of their knowledge:
— the consolidated financial statements, which have been prepared in
accordance with IFRS, as adopted by the European Union, give a true
and fair view of the assets, liabilities, financial position and profit of
the group
— the Report of the Directors on pages 11 to 97 includes a fair review
of the development and performance of the business and the
position of the group, together with a description of the principal
risks and uncertainties that it faces.
Significant accounting policies, critical accounting
estimates and key judgements
Our significant accounting policies are set out on pages 109 to 115 of
the consolidated financial statements and conform with IFRS. These
policies, and applicable estimation techniques have been reviewed
by the directors who have confirmed them to be appropriate for the
preparation of the 2012/13 consolidated financial statements.
Disclosure of information to auditors
So far as each of the directors is aware, there is no relevant information
that has not been disclosed to the auditors and each of the directors
believes that all steps have been taken that ought to have been taken to
make them aware of any relevant audit information and to establish that
the auditors have been made aware of that information.
Going concern
The sections on Strategy, Business and Performance on pages 11 to 61
include information on the group structure, the performance of each
of the lines of business, the impact of regulation and competition and
principal risks and uncertainties. The Performance section on pages 41
to 61 includes information on our financial results, financial outlook,
cash flow and net debt and balance sheet position. Notes 22, 23, 24 and
26 of the consolidated financial statements include information on the
group’s investments, cash and cash equivalents, borrowings, derivatives,
financial risk management objectives, hedging policies and exposures to
interest, foreign exchange, credit, liquidity and market risks.
Alongside the factors noted above, the directors have considered the
group’s cash flow forecasts, in particular with reference to the period
to the end of May 2014. The directors are satisfied that this cash flow
forecast, taking into account reasonably possible risk sensitivities
associated with this forecast and the group’s current funding and
facilities, alongside the group’s funding strategy, shows that the group
will continue to operate for the foreseeable future. The directors
therefore continue to have a reasonable expectation that the group
has adequate resources to continue in operational existence for the
foreseeable future and continue to adopt a going concern basis (in
accordance with the guidance ‘Going Concern and Liquidity Risk:
Guidance for Directors of UK Companies 2009’ issued by the Financial
Reporting Council) in preparing the consolidated financial statements.
There has been no significant change in the financial or trading position
of the group since 31 March 2013.
Independent advice
The Board has a procedure for directors, in carrying out their duties, to
take independent professional advice if necessary, at BT’s expense. All
directors also have access to the advice and services of the Company
Secretary.