BT 2016 Annual Report Download - page 143

Overview The Strategic Report Governance Financial statements Additional information
149
Directors’ information
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 financial statements
for each financial year. Under that law the directors have prepared
the consolidated financial statements in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union, and the parent company financial statements
in accordance with UK Generally Accepted Accounting Practice
(UK GAAP), including Financial Reporting Standard 101 Reduced
Disclosure Framework (FRS 101). In preparing the consolidated
financial 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
financial statements unless they are satisfied that they give a true
and fair view of the state of aairs of the group and the company
and of the profit or loss of the group and the company for that
period.
In preparing these financial 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 GAAP including FRS 101
have been followed, subject to any material departures disclosed
and explained in the consolidated and parent company financial
statements respectively;
• notify the parent company’s shareholders in writing about the
use of disclosure exemptions, if any, of FRS 101 used in the
preparation of financial statements; and
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the group and 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 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.
The directors are responsible for the maintenance and integrity of
the corporate and financial information included on the company’s
website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may dier
from legislation in other jurisdictions.
Each of the directors, whose names and functions are listed on
pages 112 to 113 confirms that, to the best of their knowledge:
• the consolidated financial 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, financial position and
profit of the group; and
• the Strategic Report on pages 19 to 108 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 processes and procedures in place to ensure that the
information presented in the Annual Report is fair, balanced and
understandable – these are described on page 119.
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 group’s position and performance,
business model and strategy.
Critical accounting estimates and key
judgements, and signicant accounting
policies
Our critical accounting estimates and key judgements, and
significant accounting policies are set out on pages 171 to 180 of
the consolidated financial statements and conform with IFRS. These
reect changes required given the acquisition of EE this year. These
policies and applicable estimation techniques have been reviewed
by the directors who have confirmed them to be appropriate for
the preparation of the 2015/16 consolidated financial 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 19 to 108 includes information on
the group structure, strategy and business model, 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 93 to 108 includes information
on our group financial results, financial outlook, cash ow and
net debt and balance sheet position. Notes 23, 24, 25 and 27
of the consolidated financial statements include information on
the group’s investments, cash and cash equivalents, borrowings,
derivatives, financial risk management objectives, hedging policies
and exposure to interest, foreign exchange, credit, liquidity and
market risks.
In accordance with IAS 1 ‘Presentation of financial statements’, and
revised FRC Guidance on ‘risk management, internal control and
related financial and business reporting’, management has taken
into account all available information about the future for a period
of at least, but not limited to, 12 months from the date of approval
of the financial statements when assessing the group’s ability to
continue as a going concern.
The directors carried out a robust assessment of the principal
risks aecting the group (including those that would threaten our
business model, future performance, insolvency or liquidity). Details
of those risks and how we manage and mitigate them are set out in
Our Risks on pages 46 to 56.
Having assessed the principal risks and other matters discussed in
connection with the viability statement, in accordance with the
2014 UK Corporate Governance Code and the FRC Guidance, the
directors considered it appropriate to adopt the going concern
basis of accounting in preparing the financial statements. This
assessment covers the period to May 2017, which is consistent
with the FRC Guidance.