BT 2015 Annual Report Download - page 198

196 BT Group plc
Annual Report 2015
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BT Group plc accounting policies
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s used in these financial stateents and associated notes the ter
copan refers to  roup plc. hese separate financial stateents
of the company are presented as required by the Companies Act 2006.
he separate financial stateents have been prepared in accordance
with UK enerall ccepted ccountin ractice UK . he
principal accounting policies are set out below and have been applied
consistently throughout the year and the previous year.
he financial stateents are prepared on a oin concern basis and
under the historical cost convention as odified b the revaluation of
certain financial instruents at fair value.
s peritted b ection 0 of the opanies ct 00
the copans profit and loss account has not been presented.
he  roup plc consolidated financial stateents for the ear
ended 1 arch 01 contain a consolidated cash ow stateent.
onseuentl as peritted b  1 ash ow stateents the
copan has decided not to present its own cash ow stateent.
he  roup plc consolidated financial stateents for the ear
ended 31 March 2015 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.
he  roup plc consolidated financial stateents for the ear ended
31 March 2015 contain financial instruent disclosures which copl
with FRS 29, ‘Financial Instruments: Disclosures’. Consequently, the
company is exempt from the disclosure requirements of FRS 29 in
respect of its financial instruents.
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Investments in subsidiary undertakings are stated at cost and reviewed
for impairment if there are indicators that the carrying value may not
be recoverable.
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ull provision is ade for deferred taation on all tiin dierences
which have arisen but not reversed at the balance sheet date. Deferred
ta assets are reconised to the etent that itis rearded as ore
liel than not that there will be sucient taable profits fro which
the underlin tiin dierences can be deducted. he deferred ta
balances are not discounted.
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Dividend distributions are recognised as a liability in the year in which
the dividends are approved by the company’s shareholders. Interim
dividends are reconised when the are paid final dividends when
authorised in general meetings by shareholders.
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rdinar shares are classified as euit. epurchased shares of the
company are recorded in the balance sheet as part of Own shares and
presented as a deduction from shareholders’ equity at cost.
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Cash includes cash in hand and bank deposits repayable on demand.
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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.
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Following the publication of FRS 100 ‘Application of Financial
Reporting Requirements’ by the Financial Reporting Council, BT
Group plc is required to change its accounting framework for its entity
financial stateents which is currentl UK  for its financial ear
commencing 1 April 2015. The purpose of FRS 100 is to align reporting
in the UK with IFRS. As the ultimate parent, the company will adopt FRS
101 ‘Reduced Disclosure Framework’.
s reuired b  101  roup plc notified its shareholders of the
proposed change at the Annual General Meeting in July 2014.
Other information
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he oard recoends that a final dividend in respect of the ear ended
31 March 2015 of 8.5p 011 .p will be paid to shareholders
on epteber 01 tain the full ear proposed dividend in respect
of 011 to 12.4p 011: 10.9p). This dividend is subject to
shareholder approval at the Annual General Meeting and therefore the
liability of approximately £712 011: £611m) has not been
included in these financial stateents.
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The Chairman, the executive directors and the Group General Counsel
 opan ecretar of roup plc were the onl eploees
of the company during 011. The costs relating to qualifying
services provided to the company’s principal subsidiary, British
Telecommunications plc, are recharged to that company.
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he audit fee in respect of the parent copan was 900 011
£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  to the consolidated financial stateents of
roup plc.