Carphone Warehouse 2006 Annual Report Download - page 68

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Notes to the Financial Statements continued
27 Pension arrangements
The Group provides various pension schemes for the benefit of a significant number of its employees:
Defined contribution schemes:
The Group operates a number of defined contribution schemes for which the cost for the period was £2.8m (2005 – £1.9m).
Defined benefit schemes:
On 5 April 2000 the Group commenced the winding up of a defined benefit pension scheme. Based on actuarial advice, the assets of the scheme are anticipated
to be sufficient to meet the levels required by the Government’s Minimum Funding Requirements calculations. On completion of the winding up of the scheme, the
Group will retain no obligations in relation to the funding of scheme benefits.
28 Contingent liabilities
European VAT authorities continue to investigate the recovery of VAT in the industry for trading activities conducted prior to April 2003. Having undertaken a
detailed internal investigation and taken advice, the Directors continue to believe that there is no financial exposure to this issue within the financial statements.
29 Reconciliation of profit and net assets under UK GAAP to IFRS
As explained in note 1, these financial statements are the first annual financial statements that the Group has prepared in accordance with IFRS.
Details of the adjustments that affect statutory profit, Headline profit and net assets in the relevant comparative periods, together with full reconciliations between
UK GAAP and IFRS, were issued on 22 September 2005 and are available on the Group’s website, www.cpwplc.com.
The adjustments are summarised as follows:
53 weeks ended
2 April 2005
Notes £’000
Statutory profit before taxation as reported under UK GAAP 68,874
Adjustments:
Share-based payments a (1,181)
Goodwill and other intangible assets b 24,765
Other adjustments c (519)
Statutory profit before taxation as reported under IFRS 91,939
Taxation as reported under UK GAAP (19,910)
Deferred tax on IFRS adjustments d 1,877
Statutory profit after taxation as reported under IFRS 73,906
Headline profit before taxation as reported under UK GAAP 102,103
Adjustments:
Share-based payments a (1,181)
Other adjustments c (519)
Headline profit before taxation under IFRS 100,403
Taxation as reported under UK GAAP (19,910)
Deferred tax on IFRS adjustments d 516
Headline profit after taxation under IFRS 81,009
Notes At 28 March 2004 At 2 April 2005
Net assets as reported under UK GAAP 471,843 502,942
Adjustments:
Share-based payments a––
Goodwill and other intangible assets b – 24,765
Other adjustments c (4,245) (4,764)
Deferred tax on IFRS adjustments d 5,261 9,134
Translation differences e – 4,914
Proposed dividends f 7,869 10,968
Total assets and liabilities under IFRS 480,728 547,959
The Carphone Warehouse Group PLC Annual Report 2006
64