National Grid 2008 Annual Report Download - page 640

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 26296
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 113
Description: EXHIBIT 15.1
0/8309.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/309/8*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 26296
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 113 Description: EXHIBIT 15.1
0/8309.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/309/8*
Table of Contents
Annual Report and Accounts 2007/08
121
Adoption of new accounting standards
New IFRS accounting standards and interpretations adopted in 2007/08
During the year ended 31 March 2008 the Company adopted the following amendments to International Financial Reporting
Standards (IFRS), International Accountin
g
Standards (IAS) and the International Financial Reportin
g
Interpretation Committee
(IFRIC). None of these had a material impact on consolidated results or assets and liabilities.
New IFRS accounting standards and interpretations not yet adopted
The Company has yet to adopt the following standards and interpretations, but these are not expected to have a material
impact on consolidated results or assets and liabilities. Further information is provided in the Accounting Policies section of the
Operating and Financial Review.
IFRIC 8 on share-based payments Addresses the issue of whether IFRS 2 ‘Share-Based Payment’ applies to transactions in
which the entit
y
cannot identif
y
specificall
y
some or all of the
g
oods or services received.
IFRIC 9 on the reassessment
of embedded derivatives
Prohibits reassessment of the treatment of embedded derivatives subsequent to initial
recognition unless there is a change in the terms of the contract that significantly modifies
the cash flows that otherwise would be required under the contract, in which case
reassessment is re
q
uired.
IFRIC 10 on interim financial reporting and
impairment
States that an
y
impairment losses on
g
oodwill and certain financial assets reco
g
nised in an
interim financial statement may not be reversed in subsequent interim or annual financial
statements.
IFRIC 11 on group and treasury
share transactions
Provides guidance on whether share-based transactions involving treasury shares or
involving subsidiary undertakings (for instance, options over a parent’s shares) should be
accounted for as e
q
uit
y
-settled or cash-settled, share-based
p
a
y
ment transactions.
IFRS 8 on operating segments Sets out the requirements for the disclosure of information about an entity’s operatin
g
se
g
ments
and about the entity’s products and services, the
g
eo
g
raphical areas in which it operates and its
major customers. IFRS 8 achieves convergence with the US accounting standard, SFAS 131
‘Disclosures about Segments of an Enterprise and Related Information’ with minor differences.
IFRS 8 is re
q
uired to be ado
p
ted on 1 A
p
ril 2009.
Amendment to IAS 23 on borrowing
costs
Removes the option of immediately recognising as an expense borrowing costs that relate to
assets that take a substantial period of time to
g
et read
y
for use or sale. The amendment to IAS
23 is re
q
uired to be ado
p
ted on 1 A
p
ril 2009.
IFRIC 12 on service concession
arrangements
Applies to contractual arrangements whereby a private sector operator participates in the
development, financing, operation and maintenance of infrastructure for public sector services,
for example, under private finance initiative (PFI) contracts. IFRIC 12 will be adopted on 1
April 2008.
IFRIC 13 on customer loyalty
programmes
Clarifies that the sale of goods or services together with customer award credits (for example,
loyalty points or the right to free products) is accounted for as a multiple-element transaction.
The consideration received from the customer is allocated between the components of the
arran
g
ement based on their fair values, which will defer the reco
g
nition of some revenue. IFRIC
13 will be ado
p
ted on 1 A
p
ril 2008.
IFRIC 14 on defined benefit assets and
minimum funding requirements
Considers the limit on the measurement of a defined benefit asset to the present value of
economic benefits available in the form of refunds from the plan or reductions in future
contributions to the plan plus unrecognised gains and losses, as set out in IAS 19 ‘Employee
Benefits’. The interpretation considers when refunds or reductions in future contributions should
be considered available, particularly when a minimum funding requirement exists. IFRIC 14 will
be ado
p
ted on 1 A
p
ril 2008.
Amendment to IAS 1 on the presentation
of financial statements
Requires changes to the presentation of financial statements and adopts revised titles for the
primary statements, although companies may continue to use the existing titles. It is expected
that the amendment to IAS 1 will be ado
p
ted on 1 A
p
ril 2009.
IFRS 3R on business combinations Makes a number of changes to the accounting for business combinations, including
requirements that all payments to purchase a business are to be recorded at fair value at the
acquisition date, with some contingent payments subsequently remeasured at fair value
through income; an option to calculate goodwill based on the parent’s share of net assets only
or to include goodwill related to the minority interest; and a requirement that all transaction
costs be ex
p
ensed. It is ex
p
ected that IFRS 3R will be ado
p
ted on 1 A
p
ril 2010.
IAS 27R on consolidated and individual
financial statements
Requires the effects of all transactions with non-controlling interests to be recorded in equity if
there is no change in control. The revised standard also specifies the accounting when control
is lost. It is ex
p
ected that IAS 27R will be ado
p
ted on 1 A
p
ril 2010.
Amendment to IFRS 2 on
share-based payments
Clarifies the definition of vesting conditions and the accounting treatment of cancellations.
Vesting conditions are defined as either service conditions or performance conditions.
Cancellations by employees are accounted for in the same way as cancellations by the
Com
p
an
y
. It is ex
p
ected that the amendment to IFRS 2 will be ado
p
ted on 1 A
p
ril 2009.
Amendments to IAS 32 and IAS 1
on puttable financial instruments and
obligations arising on liquidation
Addresses the classification as a liability or as equity certain puttable financial instruments and
instruments, or components thereof, which impose upon an entity an obligation to deliver a pro
rata share of net assets on liquidation. The amendments to IAS 32 and IAS 1 are required to be
ado
p
ted on 1 A
p
ril 2009.