Experian 2013 Annual Report Download - page 106
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4. Recent accounting developments (continued)
New or revised accounting standards and interpretations issued by 31 March 2013 but not yet effective include those listed below.
•Improvements to IFRSs (April 2011); and
•IFRS 9 ‘Financial instruments: classification and measurement’.
5. Significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been
consistently applied to both years presented. Accordingly there has been no significant change in this information since the annual report for
the year ended 31 March 2012. For ease of reference, the material within this note is arranged as follows:
•Notes (a) to (d) – material of general applicability in the preparation of these financial statements;
•Notes (e) to (q) – balance sheet material to be read in conjunction with specific notes as indicated;
•Notes (r) to (x) – income statement material to be read in conjunction with specific notes as indicated; and
•Note (y) – the policy and presentation principles adopted for the disclosure of segment information in accordance with IFRS 8.
(a) Basis of consolidation
Subsidiaries
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date that
the Group no longer has control. All business combinations are accounted for using the acquisition method.
Intra-group transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation. Unrealised
losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Accounting policies of subsidiaries and segments are consistent with the policies adopted by the Group for the purposes of the Group’s
consolidation. The Group financial statements incorporate the financial statements of the Company and its subsidiary undertakings for the year
ended 31 March 2013. A list of the significant subsidiaries is given in note T to the parent company financial statements.
Non-controlling interests
The non-controlling interests in the Group balance sheet represent the share of net assets of subsidiary undertakings held outside the Group.
The movement in the year comprises the profit attributable to such interests together with any dividends paid, movements in respect of
corporate transactions and related exchange differences.
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the
Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the
carrying value of the net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded
in equity.
Where put/call option agreements are in place in respect of shares held by non-controlling shareholders, the put element of the liability is
stated at the net present value of the expected future payments. Such liabilities are shown as financial liabilities in the Group balance sheet. The
change in the net present value of such options in the year is recognised in the Group income statement within net finance costs, whilst any
change in that value attributable to exchange rate movements is recognised directly in other comprehensive income.
Associates
Associates are entities over which the Group has significant influence but not control, generally achieved by a shareholding of between 20% and
50% of the voting rights. The equity method is used to account for investments in associates and investments are initially recognised at cost.
The Group’s share of net assets of its associates and loans made to associates are included in the Group balance sheet. The Group’s share of
post-acquisition profits or losses of associates is recognised in the Group income statement. The Group’s share of post-acquisition movements
in other comprehensive income in associates is recognised in other comprehensive income. These cumulative post-acquisition movements
are adjusted against the carrying amount of the investment. The carrying amount of an investment in an associate is tested for impairment by
comparing its recoverable amount to its carrying amount whenever there is an indication that the investment may be impaired.
(b) Foreign currency translation
Transactions and balances
Transactions in foreign currencies are recorded in the functional currency of the relevant Group undertaking at the exchange rate prevailing on
the date of the transaction. At each balance sheet date, monetary assets and liabilities denominated in foreign currencies are retranslated at the
exchange rate prevailing at the balance sheet date. Translation differences on monetary items are taken to the Group income statement except
when recognised in other comprehensive income, as qualifying net investment hedges or cash flow hedges.
Notes to the Group financial statements continued