BT 2014 Annual Report Download - page 114

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Governance
Governance
Statement of directors’ responsibilities
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 nancial statements for each nancial
year. Under that law the directors have elected to prepare the
consolidated nancial statements in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European Union,
and the parent company nancial statements in accordance with UK GAAP.
In preparing the consolidated nancial statements, the directors
havealso elected to comply with IFRS, issued by the International
Accounting Standards Board (IASB). Under company law, the directors
must not approve the nancial statements unless they are satised that
they give a true and fair view of the state of aairs of the group and the
company and of the prot or loss of the group for that period.
Inpreparing these nancial statements, the directors are required to
• select suitable accounting policies and then apply them consistently
• make judgements and accounting estimates that are reasonable
andprudent
• state whether IFRS, as adopted by the European Union, and IFRS
issued by the IASB and applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and explained
in the consolidated and parent company nancial statements
respectively and
• prepare the nancial 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 sucient to show and explain the company’s transactions and
disclose with reasonable accuracy at any time the nancial position of
the company and the group and enable them to ensure that the nancial
statements and the Report on Directors’ Remuneration comply with
the Companies Act 2006 and, as regards the consolidated nancial
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.
The directors are responsible for the maintenance and integrity of the
corporate and nancial information included on the company’s website.
Legislation in the United Kingdom governing the preparation and
dissemination of nancial statements may dier from legislation in
otherjurisdictions.
Each of the directors, whose names and functions are listed on pages78
to 79 conrms that, to the best of their knowledge
• the consolidated nancial statements, which have been prepared in
accordance with IFRS, as adopted by the European Union, give a true
and fair view of the assets, liabilities, nancial position and prot of
the group and
• the Strategic Report on pages 13 to 74 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.
Fair, balanced and understandable
In accordance with the principles of the UK Corporate Governance Code,
we have arrangements in place to ensure that the information presented
in the Annual Report is fair, balanced and understandable – these are
described on page 83.
The Board considers, on the advice of the
Audit & Risk Committee
that the Annual Report, taken as a whole, is fair, balanced and
understandable and provides the information necessary for shareholders
to assess the company’s performance, business model and strategy.
SigniƬcant accounting policies, critical accounting
estimates and key judgements
Our signicant accounting policies are set out on pages 129 to 134 of
the consolidated nancial statements and conform with IFRS. These
policies and applicable estimation techniques have been reviewed by the
directors who have conrmed them to be appropriate for the preparation
of the 2013/14 consolidated nancial statements.
Disclosure of information to auditors
So far as each of the directors is aware, there is no relevant information
that has not been disclosed to the auditors and each of the directors
believes that all steps have been taken that ought to have been taken to
make them aware of any relevant audit information and to establish that
the auditors have been made aware of that information.
Going concern
The Strategic Report on pages 13 to 74 includes information on the
group structure, the performance of each of the lines of business,
the impact of regulation and competition and principal risks and
uncertainties. TheGroup Performance section on pages 57 to 73
includes information onour group nancial results, nancial outlook,
cash ow and net debt and balance sheet position. Notes 22, 23, 24 and
26 of the consolidatednancial statements include information on the
group’s investments, cash and cash equivalents, borrowings, derivatives,
nancial risk management objectives, hedging policies and exposure
tointerest, foreign exchange, credit, liquidity and market risks.
Alongside the factors noted above, the directors have considered the
group’s cash ow forecasts, in particular with reference to the period
to the end of May 2015. The directors are satised that this cash ow
forecast, taking into account reasonably possible risk sensitivities
associated with this forecast and the group’s current funding and
facilities, alongside the group’s funding strategy, shows that the group
will continue to operate for the foreseeable future. The directors
therefore continue to have a reasonable expectation that the group
has adequate resources to continue in operational existence for
the foreseeable future and continue to adopt a going concern basis
(inaccordance with the guidance Going Concern and Liquidity Risk
Guidance for Directors of UK Companies 2009’ issued by the Financial
Reporting Council) in preparing the consolidated nancial statements.
There has been no signicant change in the nancial or trading position
of the group since 31 March 2014.
Independent advice
The Board has a procedure for directors, in carrying out their duties,
totake independent professional advice if necessary, at BT’s expense.
All directors also have access to the advice and services of the
CompanySecretary.
Directors’ information