Experian 2013 Annual Report Download - page 112
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Please find page 112 of the 2013 Experian annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.110 Experian Annual Report 2013 Financial statements
5. Significant accounting policies (continued)
Details of the nature of movements in the fair value of derivatives which are reported as financial fair value remeasurements are included in
note (k) above. As indicated in note (a) above, the change in the year in the net present value of put/call option agreements in place in respect of
shares held by non-controlling shareholders is recognised within net finance costs and reported therein as financial fair value remeasurements.
(u) Tax (note 16)
The tax charge or credit for the year is recognised in the Group income statement, except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In such cases the tax is recognised in other comprehensive income or directly in equity as
appropriate. Current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the
countries where the Group operates. Current tax assets and liabilities are offset where there is a legally enforceable right of offset.
Deferred tax is provided in full on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in
the Group financial statements. Deferred tax is not recognised on taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax that arises from the initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of
the transaction affects neither accounting nor taxable profit or loss, is not accounted for. Deferred tax assets and liabilities are calculated at the
tax rates that are expected to apply when the asset is realised or the liability is settled, based on the tax rates and laws that have been enacted or
substantively enacted by the balance sheet date.
Deferred tax assets are recognised in respect of tax losses carried forward and other temporary differences to the extent that the realisation
of the related tax benefit through future taxable profits is probable. Deferred tax is provided on temporary differences arising on investments
in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable
that the temporary difference will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset where there is a legally
enforceable right to offset current tax assets and liabilities and where they relate to the same tax authority.
(v) Share incentive plans (note 35)
The fair value of share awards and options granted in connection with the Group’s equity settled, share-based employee incentive plans
is recognised as an expense in the Group income statement on a straight line basis over the vesting period. Fair value is measured using
whichever of the Black-Scholes model, Monte Carlo model and closing market price is most appropriate. The Group takes into account
the best estimate of the number of awards and options expected to vest and such estimates are revised at each balance sheet date. Non-
market performance conditions are included in the vesting estimates. Market-based performance conditions are included in the fair value
measurement but are not revised for actual performance.
(w) Contingent consideration
The initially recorded cost of any acquisition includes a reasonable estimate of the fair value of any contingent amounts expected to be payable
in the future. Any cost or benefit arising when such estimates are revised is recognised in the Group income statement (see note 14).
Where part or all of the amount of disposal consideration is contingent on future events, the disposal proceeds initially recorded include a
reasonable estimate of the fair value of the contingent amounts expected to be receivable and payable in the future. The proceeds and profit or
loss on disposal are adjusted when revised estimates are made, with corresponding adjustments made to debtors and creditors as appropriate,
until the ultimate outcome is known and the related consideration received (see notes 17 and 47).
(x) Discontinued operations (note 17)
A discontinued operation is a component of the Group’s business that represents a separate geographic area of operation or a separate major
line of business. Classification as a discontinued operation occurs upon disposal or earlier, if the operation meets the criteria to be classified as
held for sale under IFRS 5.
(y) Segment information policy and presentation principles (note 9)
Experian is organised into, and managed on a worldwide basis over, the following five operating segments, based on geographic areas,
supported by its central functions:
•North America;
•Latin America;
•UK and Ireland;
•Europe, Middle East and Africa (‘EMEA’); and
•Asia Pacific.
The chief operating decision maker assesses the performance of the above operating segments on the basis of EBIT, as defined in note 7.
The ‘All other segments’ category required to be disclosed has been captioned in these financial statements as EMEA/Asia Pacific. This
combines information in respect of the EMEA and the Asia Pacific segments as, on the basis of their share of the Group’s results and net assets,
neither of these operating segments is individually reportable.
Notes to the Group financial statements continued