Unilever 2014 Annual Report Download - page 95

The polces are set out under the headng ‘aptal and fundng’
n note 15 to the consoldated accounts on pages 109 and110
NV s takng advantage of the exempton for not provdng all the
fnancal nstruments dsclosures, because IFRS 7 dsclosures
are gven n note 15 to note 18to the consoldated accounts on
pages 109 to 123
DEFERRED TAXATION
Full provson s made for deferred taxaton on all sgnfcant
tmng dfferences arsng from the recognton of tems for
taxaton purposes n dfferent perods from those n whch they
are ncluded n NV accounts Full provson s made at the rates
of tax prevalng at the year end unless future rates have been
enacted or substantvely enacted Deferred tax assets and
labltes have not been dscounted
OWN SHARES HELD
Own shares held by NV are accounted for n accordance wth
Dutch law and UK AAP, namely FRS 25 ‘Fnancal Instruments
Presentaton’ All dfferences between the purchase prce of the
shares held to satsfy optons granted and the proceeds receved
for the shares, whether on exercse or lapse, are charged to other
reserves In respect to opton plans, dsclosures are gven n note
4 to the consoldated accounts on pages 98 and 99
RETIREMENT BENEFITS
Unlever NV has accounted for pensons and smlar benefts
under the Unted Kngdom Fnancal Reportng Standard 17
‘Retrement benefts’ (FRS 17) The operatng and fnancng costs
of defned beneft plans are recognsed separately n the proft
andloss account servce costs are systematcally spread over
theservce lves of employees, and fnancng costs are recognsed
n the perods n whch they arse Varatons from expected costs,
arsng from the experence of the plans or changes nactuaral
assumptons, are recognsed mmedately n equty The costs of
ndvdual events such as past servce beneft enhancements,
settlements and curtalments arerecognsed mmedately n the
proft and loss account The labltesand, where applcable, the
assets of defned beneft plans arerecognsed at far value n the
balance sheet The charges to the proft and loss account for
defned contrbuton plans are NV contrbutons payable and
theassets of such plans are not ncluded nNV’s balancesheet
DIVIDENDS
Under Fnancal Reportng Standard 21 ‘Events after the Balance
Sheet Date’ (FRS 21), proposed dvdends do not meet the
defnton of a lablty untl such tme as they have been approved
by shareholders at the Annual eneral Meetng Therefore, we do
not recognse a lablty n any perod for dvdends that have been
proposed but wll not be approved untl after the balance sheet
date Ths holds for external dvdends as well as ntra-group
dvdends pad to the parent company
TAXATION
Unlever NV together wth certan of ts subsdares, s part of a
tax group for Dutch corporate ncome tax purposes Unlever NV
s the head of the fscal unty The members of the fscal unty are
ontly and severally lable for any taxes payable by ths group The
external payable to or recevable from the Dutch Tax Authortes,
s only ncluded n the books of Unlever NV and ths amount
relates to the fscal unty comprsng all enttes except for
Unlever Nederland Holdngs BV, Unvest ompany BV and
Unlever Insurances NV The amounts for the other enttes are
settled between Unlever NV and these enttes va ntercompany
transactons
ACCOUNTING INFORMATION AND POLICIES
BASIS OF PREPARATION
The company accounts of Unlever NV comply n all materal
respects wth legslaton n the Netherlands As allowed by Artcle
23621 of the Dutch vl ode, the company accounts are
prepared n accordance wth Unted Kngdom accountng
standards, unless such standards conflct wth the vl ode n
the Netherlands whch would n such case preval
The accounts are prepared under the hstorcal cost conventon
unless otherwse ndcated, n accordance wth theaccountng
polces set out below whch havebeen consstentlyappled
ADOPTION OF FRS 101 IN 2015
In 2012, the FR, beng the standard settng body n the UK,
publshed FRS 101 ‘Reduced Dsclosure Framework’ whch s
avalable to qualfyng enttes that prepare ther annual report
and accounts under EU adopted IFRS (Internatonal Fnancal
Reportng Standards) Ths outlnes a reduced dsclosure
framework avalable to qualfyng enttes and all UK enttes wll
be requred to adopt ths or an alternatve standard n 2015
Unlever NV ntends to prepare ts accounts under FRS 101 for
the frst tme n 2015 The consoldated accounts for the roup wll
contnue to be prepared under full IFRS The Board consders that
t s n the best nterests of the roup for Unlever NV to adopt
FRS 101 ‘Reduced Dsclosure Framework’
A shareholder or shareholders holdng n aggregate 5% or more
of the total allotted shares n Unlever NV may serve obectons to
the use of the dsclosure exemptons on Unlever NV, n wrtng,
to ts regstered offce (Weena 455, PO Box 760, 3000 DK
Rotterdam, The Netherlands) not later than 30 June 2015 and,
f so receved, Unlever NV may not use these dsclosure
exemptons
ACCOUNTING POLICIES
The prncpal accountng polces are as follows
INTANIBLE ASSETS
Intangble assets are amortsed n the proft and loss account over
ther expected useful lves of up to a maxmum of 20 years These
assets are held at cost less accumulated amortsaton They are
subect to revew for mparment n accordance wth Unted
Kngdom Fnancal Reportng Standard 11 ‘Imparment of Fxed
Assets and oodwll’ (FRS 11) Any mparment s charged to the
proft and loss account as t arses
INVESTMENTS IN SUBSIDIARIES
Shares n group companes are stated at cost less any amounts
wrtten off to reflect a permanent mparment Any mparment
scharged tothe proft and loss account as t arses In
accordance wth Artcle 23855 of the Dutch vl ode, Unlever
NV shares held by Unlever NV subsdares are deducted from
the carryng value of those subsdares Ths dffers from the
accountng treatment under UKAAP, whchwould requre these
amounts to bencluded wthn nvestments n subsdares
FINANIAL INSTRUMENTS
NV accountng polces under Unted Kngdom generallyaccepted
accountng prncples (UK AAP) namely FRS 25 ‘Fnancal
Instruments Presentaton’, FRS 26 ‘Fnancal Instruments
Measurement’ and FRS 29 ‘Fnancal Instruments Dsclosures’
are thesame as the Unlever roup’s accountng polces under
IFRS namely IAS 32 ‘Fnancal Instruments Presentaton’, IAS 39
‘Fnancal Instruments Recognton and Measurement’ and
IFRS 7 ‘Fnancal Instruments Dsclosures’
132 Unilever Annual Report and Accounts 2014Financial statements
NOTES TO THE OMPANY AOUNTS
UNILEVER NV