National Grid 2008 Annual Report Download - page 701

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 65095
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: 174
Description: EXHIBIT 15.1
0/5370.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/370/5*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 65095
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: 174 Description: EXHIBIT 15.1
0/5370.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/370/5*
Table of Contents
182
Notes to the Com
p
an
y
financial statements
National Grid plc
Notes to the Company financial statements
1. Adoption of new accounting standards
New financial reporting standards (FRS) and abstracts adopted in 2007/08
During the year the Company has adopted the following FRSs and abstracts. None of these had a material impact on
consolidated results or assets and liabilities.
New FRS not yet adopted
The Company has yet to adopt the following FRS, however, it is not expected to have a material impact on the Company’s
results or assets and liabilities.
2. Fixed asset investments
During the year the Company acquired a further 500,000 ordinary shares of £1 each in National Grid (US) Holdings Limited for
a total consideration of £878m.
The names of the principal subsidiary undertakings, joint ventures and associates are included in note 37 in the consolidated
financial statements.
The Directors believe that the carrying value of the investments is supported by their underlying net assets.
Amendment to FRS 3 on reporting
financial performance
Removes inconsistencies between FRS 3 and both FRS 26 ‘Financial Instruments: Recognition and
measurement’ and FRS 23 ‘The effects of changes in foreign exchange rates’, in particular as
regards recycling to the profit and loss account of gains and losses and exchange differences
p
reviousl
y
reco
g
nised in the statement of reco
g
nised
g
ains and losses.
Amendment to FRS 26 on financial
instruments: measurement –
reco
g
nition and dereco
g
nition
Implements the recognition and derecognition material in IAS 39. The requirements of FRS 5,
‘Reporting the substance of transactions’, are superseded for transactions that fall within FRS 26’s
sco
p
e, but FRS 5 continues to a
pp
l
y
to transactions in non-financial assets and liabilities.
UITF Abstract 42 on 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 re
q
uired under the contract, in which case reassessment is re
q
uired.
UITF Abstract 44 on group and
treasury share transactions
Provides guidance on whether share-based transactions involving treasury shares or involving
group entities (for instance, options over a parent’s shares) should be accounted for as equity-
settled or cash-settled.
Amendment to FRS 20 on
share-based payment
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 Company. It is expected that the amendment
to FRS 20 will be adopted on 1 April 2009.
Shares in Loan to
subsidiary subsidiary
undertakings undertaking Total
£m £m £m
At 31 March 2006 2,428
–
2,428
Additions 952 327 1,279
At 31 March 2007 3,380 327 3,707
Additions 896
–
896
Reclassification of loan as amounts owed b
y
subsidiar
y
undertakin
g
s
–
(
327
)
(
327
)
At 31 March 2008 4,276
–
4,276