Carphone Warehouse 2016 Annual Report Download - page 145

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143
C1 Accounting policies
Basis of preparation
The Company is incorporated in the United Kingdom. The financial statements have been prepared on a going concern basis
(see note 1 to the Group financial statements).
The separate financial statements of the Company are presented as required by the Companies Act 2006. The Company meets
the definition of a qualifying entity under FRS 100 (Financial Reporting Standard 100) issued by the Financial Reporting Council.
Accordingly, in the period ended 30 April 2016 the Company has decided to adopt FRS 101 and has undergone transition from
reporting under applicable United Kingdom accounting standards to FRS 101 as issued by the Financial Reporting Council.
Accordingly, the financial statements have therefore been prepared in accordance with FRS 101 (Financial Reporting Standard
101) Reduced Disclosure Framework’ as issued by the Financial Reporting Council, incorporating the Amendments to FRS 101
issued by the Financial Reporting Council in July 2015 other than those relating to legal changes and has not applied the
amendments to Company law made by The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015
that are effective for accounting periods beginning on or after 1 January 2016.
This transition is not considered to have had a material effect on the financial statements.
As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in
relation to share-based payments, financial instruments, capital management, presentation of comparative information in respect
of certain assets, presentation of a cash flow statement and certain related party transactions.
Where required, equivalent disclosures are given in the consolidated financial statements.
The financial statements have been prepared on the historical cost basis except for the re measurement of certain financial
instruments to fair value. The principal accounting policies adopted are the same as those set out in note 1 to the Group financial
statements except as noted below.
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment.
Prior to the Dixons Retail Merger, the Company prepared its financial statements to the Saturday closest to its accounting
reference date of 31 March. Following the Merger, which is described further in note 24 to the Group financial statements,
the Company changed its accounting reference date to 30 April which was the accounting reference date of Dixons Retail plc,
but continues to draw up accounts to the nearest Saturday and accordingly the comparative financial period is for the
13 months ended 2 May 2015.
C2 Profit and loss account
In accordance with the exemption permitted by section 408 of the Companies Act 2006, the profit and loss account
of the Company is not presented separately. The profit recognised for the year ended 30 April 2016 was £75 million
(2014/15: £64 million). Information regarding the audit fees for the Group is provided in note 3 to the Group
financial statements.
C3 Equity dividends
Details of amounts recognised as distributions to shareholders in the period and those proposed are detailed in note 23
of the Group financial statements.
00_DC 2016 Annual Report.pdf 143 11/07/2016 18:34
Notes to the Company financial statements