BT 2011 Annual Report Download - page 91

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The directors are responsible for preparing the Annual Report, the
Report on directors’ remuneration and the financial statements in
accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements
for each financial year. Under that law the directors have elected to
prepare the consolidated financial statements in accordance with
International Financial Reporting Standards (IFRSs) as adopted by
the European Union, and the parent company financial statements
in accordance with United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards and applicable
law). In preparing the consolidated financial statements, the
directors have also elected to comply with IFRSs, issued by the
International Accounting Standards Board (IASB). Under company
law the directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of
affairs of the group and the company and of the profit or loss of the
group for that period. In preparing these financial statements, the
directors are required to:
•select suitable accounting policies and then apply them
consistently;
•make judgments and accounting estimates that are reasonable
and prudent;
•state whether IFRSs as adopted by the European Union and IFRSs
issued by IASB and applicable UK Accounting Standards have
been followed, subject to any material departures disclosed and
explained in the consolidated and parent company financial
statements respectively; and
•prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the company will
continue in business.
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the company’s
transactions and disclose with reasonable accuracy at any time the
financial position of the company and the group and enable them
to ensure that the financial statements and the Report on directors’
remuneration comply with the Companies Act 2006 and, as regards
the consolidated financial statements, Article 4 of the IAS
Regulation. They are also responsible for safeguarding the assets of
the company and the group and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities.
Each of the directors, whose names and functions are listed on
pages 60 to 61 confirm that, to the best of their knowledge:
•the consolidated financial statements, which have been prepared
in accordance with IFRSs as adopted by the European Union, give
a true and fair view of the assets, liabilities, financial position and
profit of the group; and
•the Report of the directors on pages 59 to 86 includes a fair
review of the development and performance of the business and
the position of the group, together with a description of the
principal risks and uncertainties that it faces.
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
FINANCIAL STATEMENTS
88
OVERVIEWBUSINESS REVIEWFINANCIAL REVIEWREPORT OF THE DIRECTORSFINANCIAL STATEMENTSADDITIONAL INFORMATION