BT 2014 Annual Report Download - page 181

178 Financial statements
Financial statements of BT Group plc
BT Group plc accounting policies
Accounting basis
As used in these nancial statements and associated notes, the term
company’ refers to BT Group plc. These separate nancial statements
of the company are presented as required by the Companies Act 2006.
The separate nancial statements have been prepared in accordance
with UK Generally Accepted Accounting Practice (UK GAAP).
The principal accounting policies are set out below and have been
applied consistently throughout the year and the previous year.
The nancial statements are prepared on a going concern basis and
under the historical cost convention as modied by the revaluation of
certain nancial instruments at fair value.
As permitted by Section 408(3) of the Companies Act 2006,
the company’s prot and loss account has not been presented.
The BT Group plc consolidated nancial statements for the year
ended 31 March 2014 contain a consolidated cash ow statement.
Consequently, as permitted by FRS 1 Cash ow statements’, the
company has decided not to present its own cash ow statement.
The BT Group plc consolidated nancial statements for the
year ended 31 March 2014 contain related party disclosures.
Consequently, the company has taken advantage of the exemption
in FRS 8, Related Party Disclosures’, not to disclose transactions
with other members of the BT Group.
The BT Group plc consolidated nancial statements for the year ended
31 March 2014 contain nancial instrument disclosures which comply
with FRS 29, Financial Instruments Disclosures’. Consequently, the
company is exempt from the disclosure requirements of FRS 29 in
respect of its nancial instruments.
Investments in subsidiary undertakings
Investments in subsidiary undertakings are stated at cost and reviewed
for impairment if there are indicators that the carrying value may not
be recoverable.
Taxation
Full provision is made for deferred taxation on all timing dierences
which have arisen but not reversed at the balance sheet date. Deferred
tax assets are recognised to the extent that itis regarded as more
likely than not that there will be sucient taxable prots from which
the underlying timing dierences can be deducted. The deferred tax
balances are not discounted.
Dividends
Dividend distributions are recognised as a liability in the year in which
the dividends are approved by the company’s shareholders. Interim
dividends are recognised when they are paid nal dividends when
authorised in general meetings by shareholders.
Share capital
Ordinary shares are classied as equity. Repurchased shares of the
company are recorded in the balance sheet as part of Own shares and
presented as a deduction from shareholders’ equity at cost.
Cash
Cash includes cash in hand and bank deposits repayable on demand.
Share-based payments
The company does not incur a charge for share-based payments.
However, the issuance by the company of share options and awards to
employees of its subsidiaries represents additional capital contributions
to its subsidiaries. An addition to the company’s investment in
subsidiaries is recorded with a corresponding increase in equity
shareholders’ funds. The additional capital contribution is determined
based on the fair value of options and awards at the date of grant and
is recognised over the vesting period.
Other information
Dividends
The Board recommends that a nal dividend in respect of the year ended
31 March 2014 of 7.5p (2012/13 6.5p) will be paid to shareholders
on 8September 2014, taking the full year proposed dividend in respect
of 2013/14 to 10.9p (2012/13 9.5p). This dividend is subject to
shareholder approval at the Annual General Meeting and therefore the
liability of approximately £611m (2012/13 £514m) has not been
included in these nancial statements.
Employees
The Chairman, the executive directors and the Group General Counsel
& Company Secretary of BTGroup plc were the only employees
of the company during 2013/14. The costs relating to qualifying
services provided to the company’s principal subsidiary, British
Telecommunications plc, are recharged to that company.
Audit fees
The audit fee in respect of the parent company was £41,000 (2012/13
£41,000). Fees payable to PricewaterhouseCoopers LLP for non-audit
services to the company are not required to be disclosed as they are
included within note 7 to the consolidated nancial statements of
BTGroup plc.