Marks and Spencer 2011 Annual Report Download - page 110

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Marks and Spencer Group plc Annual report and financial statements 2011
108
Company notes to the financial statements
C1 Accounting policies
The Company’s accounting policies are the same as those set out in note 1 of the Group financial statements, except as noted below.
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment. The Company grants share-based
payments to the employees of subsidiary companies. Each period the fair value of the employee services received by the subsidiary
as a capital contribution from the Company is reflected as an addition to investments in subsidiaries.
Loans from other Group undertakings and all other payables are initially recorded at fair value, which is generally the proceeds received.
They are then subsequently carried at amortised cost. The loans are non-interest bearing and repayable on demand.
The Company’s financial risk is managed as part of the Group’s strategy and policies as discussed in note 23 of the Group
financial statements.
In accordance with the exemption allowed by Section 408 of the Companies Act 2006, the Company has not presented its own
income statement.
C2 Employees
The Company had no employees during the current or prior year. Directors received emoluments in respect of their services to the
Company during the year of £698,000 (last year £592,000). The Company did not operate any pension schemes during the current or
preceding year.
C3 Auditors’ remuneration
Auditors’ remuneration in respect of the Company’s annual audit has been borne by its subsidiary Marks and Spencer plc and has
been disclosed on a consolidated basis in the Company’s consolidated financial statements as required by Section 494 of the
Companies Act 2006.
C4 Dividends
2011
per share
2010
per share
2011
£m
2010
£m
Dividends on equity ordinary shares
Paid final dividend 9.5p 9.5p 149.7 149.6
Paid interim dividend 6.2p 5.5p 97.8 86.4
15.7p 15.0p 247.5 236.0
In addition, the directors have proposed a final dividend in respect of the year ended 2 April 2011 of 10.8p per share amounting to a
dividend of £171.2m. It will be paid on 15 July 2011 to shareholders who are on the Register of Members on 3 June 2011. In line with
C5 Investments
A. Investments in Group undertakings
2011
£m
2010
£m
Beginning of the year 9,168.6 9,158.5
Additional investment in subsidiary relating to share-based payments 11.2 10.1
End of year 9,179.8 9,168.6
Shares in Group undertakings represent the Company’s investment in Marks and Spencer plc.
the requirements of IAS 10 – ‘Events after the Reporting Period’, this dividend has not been recognised within these results.