National Grid 2010 Annual Report Download - page 79

National Grid Gas plc Annual Report and Accounts 2009/10 77
Notes to the Company financial statements
1
.
Ad
op
ti
on o
f
new accoun
ti
ng s
t
an
d
ar
d
s
New financial reporting standards (FRS) and abstracts adopted in 2009/1
0
Amendment to FRS 20 on share-based payments
Improvements to FRS 2008
New FRS not yet adopte
d
FRS 30 on heritage assets
Improvements to FRS 2009
2. Auditors' remuneration
A
uditors' remuneration in respect of the Company is set out below:
2010 2009
£m £m
A
udit services
A
udit fee of Company 0.2 0.3
Other services
Other services supplied pursuant to legislation 0.2 0.2
3. Number of employees, including Directors
2010 2009
Average Average
number number
United Kingdom - continuing operations 5,678 6,016
Enhances disclosures about fair value and liquidity risk.
Contains amendments to various existing standards.
UITF 46 on hedges of a net investment in a foreign
operation
Clarifies that hedged risk may be designated at any level in a group and hedging instruments may be
held by any Company in a group (except the foreign entity being hedged), that net investment hedge
accounting may not be adopted in respect of a presentation currency and that on disposal the amounts
to be reclassifed from equity to profit or loss are any cumulative gain or loss on the hedging instrument
and the cumulative translation difference on the forein
g
o
p
eration dis
p
osed of.
Amendment to FRS 25 on puttable financial
instruments and obligations arising on liquidation
Clarifies the scope and accounting for group cash settled share based payment transactions in separate
and individual financial statements when there is no obligation to settle the share based payment
transaction. The amendment to FRS 20 will be adopted by the Company with effect from 1 April 2010.
Amendment to FRS 25 on classification of rights
issues
Other services supplied pursuant to legislation represents fees payable for services in relation to engagements which are required to be
carried out by the auditor. In particular, this includes fees for audit reports on regulatory returns and fees for reports under section 404 of the
US Public Company Accounting Reform and Investor Protection Act of 2002 (Sarbanes-Oxley).
During the year the Company has adopted the following FRSs and abstracts. None of these had a material impact on the Company's results
or assets and liabilities.
Defines as an equity instrument a financial instrument that gives the holder the right to acquire a fixed
number of the entity's equity instrument for a fixed amount of any currency, if the financial instrument is
offered pro rata to all existing owners of the same class of non-derivative equity instruments. The
amendment to FRS 25 has been adopted by the Company with effect from 1 April 2010.
Changes the definition of related party to be the same as that in law and provides an exemption only in
respect of wholly-owned subsidiaries, rather than 90% subsidiaries as previously permitted. The
amendments to FRS 8 have been ado
p
ted b
y
the Com
p
an
y
with effect from 1 A
p
ril 2010.
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.
Amendment to FRS 29 on improving financial
instrument disclosures
Amendment to FRS 20 on group cash settled share
based payments
Contains amendments to various existing standards. The amendments have been adopted by the
Company with effect from 1 April 2010.
Prohibits designating inflation as a hedgeable component of an instrument, unless cash flows relating to
the separate inflation component are contractual and also prohibits the designation of a purchased option
in its entirety as the hedge of a one-sided risk in a forecast transaction. The amendments to FRS 26
have been adopted by the Company with effect from 1 April 2010.
Amendment to FRS 8 on related party disclosures
Sets out disclosure requirements in respect of assets that are held and maintained principally for their
contribution to knowledge and culture. FRS 30 has been adopted by the Company with effect from 1 April
2010.
Amendment to FRS 26 Financial Instruments:
Recognition and measurement on eligible hedged
items
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.
Addresses the classification as a liability or as equity of 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 FRS 25 have been adopted by the Company with effect
from 1 April 2010.
Makes consequential amendments to FRS to reflect provisions of the Companies Act 2006.
Amendments to FRS 26 and UITF 42 on embedded
derivatives
Requires reassessment of whether an embedded derivative should be seperated out if a financial asset
is reclassified out of the fair value through profit or loss category.
Amendment to FRS for Companies Act changes