BT 2012 Annual Report Download - page 163

160 Financial statements
Financial statements of BT Group plc
BT Group plc accounting policies
Accounting basis
As used in these financial statements and associated notes, the term
‘company’ refers to BT Group plc. These separate financial statements
of the company are presented as required by the Companies Act 2006.
The separate financial statements have been prepared in accordance
with UK Generally Accepted Accounting Principles (UK GAAP).
The financial statements are prepared on a going concern basis and
under the historical cost convention as modified by the revaluation of
certain financial instruments at fair value.
As permitted by Section 408(3) of the Companies Act 2006, the
company’s profit and loss account has not been presented.
The BT Group plc consolidated financial statements for the year ended
31 March 2012 contain a consolidated statement of cash flows.
Consequently, the company has taken advantage of the exemption in
FRS 1, ‘Cash Flow Statements’, not to present its own cash flow
statement.
The BT Group plc consolidated financial statements for the
year ended 31 March 2012 contain related party disclosures.
Consequently, the company has taken advantage of the exemption in
FRS 8, ‘Related Party Disclosures’, not to disclose transactions with
other members of the BT Group.
The BT Group plc consolidated financial statements for the year ended
31 March 2012 contain financial instrument disclosures which comply
with FRS 29, ‘Financial Instruments: Disclosures’. Consequently, the
company is exempted from the disclosure requirements of FRS 29 in
respect of its financial instruments.
Investments in subsidiary undertakings
Investments in subsidiary undertakings are stated at cost and reviewed
for impairment if there are indicators that the carrying value may not
be recoverable.
Taxation
Full provision is made for deferred taxation on all timing differences
which have arisen but not reversed at the balance sheet date. Deferred
tax assets are recognised to the extent that it is regarded as more likely
than not that there will be sufficient taxable profits from which the
underlying timing differences can be deducted. The deferred tax
balances are not discounted.
Dividends
Dividend distributions are recognised as a liability in the year in which
the dividends are approved by the company’s shareholders. Interim
dividends are recognised when they are paid; final dividends when
authorised in general meetings by shareholders.
Share capital
Ordinary shares are classified as equity. Repurchased shares of the
company are recorded in the balance sheet as treasury shares and
presented as a deduction from shareholders’ equity at cost.
Cash
Cash includes cash in hand and bank deposits repayable on demand.
Share-based payments
The company does not incur a charge for share-based payments.
However, the issuance by the company of share options and awards to
employees of its subsidiaries represents additional capital contributions
to its subsidiaries. An addition to the company’s investment in
subsidiaries is recorded with a corresponding increase in equity
shareholders’ funds. The additional capital contribution is determined
based on the fair value of options and awards at the date of grant and
is recognised over the vesting period.
Other information
Dividends
The Board recommends that a final dividend in respect of
the year ended 31 March 2012 of 5.7p will be paid to shareholders on
3 September 2012, taking the full year proposed dividend in respect of
2012 to 8.3p (2011: 7.4p). This dividend is subject to shareholder
approval at the Annual General Meeting and therefore the liability of
approximately £453m (2011: £388m) has not been included in these
financial statements.
Employees
The executive directors and the Chairman of BT Group plc were the only
employees of the company during 2012. The costs relating to
qualifying services provided to the company’s principal subsidiary,
British Telecommunications plc, are recharged to that company.
Audit fees
The audit fee in respect of the parent company was £41,000 (2011:
£41,000). Fees payable to PricewaterhouseCoopers LLP for
non-audit services to the company are not required to be disclosed as
they are included within note 8 to the consolidated financial
statements of BT Group plc.
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BusinessStrategy
Performance
Governance
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