Experian 2007 Annual Report Download - page 125

A. Corporate information
Experian Group Limited (the ‘Company’) was incorporated and registered in Jersey on 30 June 2006 under the Jersey Companies Law as a public
company limited by shares with the name New Gemini (Jersey Co) No. 1 Limited. The Company changed its name to Experian Group Limited on
6 July 2006. The principal legislation under which the Company operates is Jersey Companies Law and regulations made thereunder.
The principal activity of the Company is to act as the ultimate holding company of the Experian Group, whose principal activity is business services.
The shares of the Company are listed on the London Stock Exchange’s market for listed securities (the ‘London Stock Exchange’) and trading in
these shares commenced on 11 October 2006.
B. Basis of preparation and significant accounting policies
Basis of preparation
The separate financial statements of the Company are presented in compliance with the requirements for companies whose shares are listed on the
London Stock Exchange. They were approved by the Board on 22 May 2007. The Company’s financial statements cover the period from
incorporation on 30 June 2006 to 31 March 2007. They are presented in Pounds Sterling, as that is the functional currency of the Company. In
determining its functional currency, the directors have determined the primary economic environment in which the Company operates.
The financial statements have been prepared on a going concern basis and under the historical cost convention, modified for the revaluation of
certain financial instruments, and in accordance with the Companies (Jersey) Law 1991 and United Kingdom Generally Accepted Accounting
Practice (‘UK GAAP’).
These separately presented Company financial statements comprise the profit and loss account, balance sheet and related notes. The Company has
taken advantage of the exemption from preparing a cash flow statement under the terms of FRS 1 (Revised 1996) ‘Cash Flow Statements’. The
Company is also exempt under the terms of FRS 8 ‘Related Party Disclosures‘ from disclosing transactions with other members of the Experian
Group.
The Experian Group Limited consolidated financial statements for the year ended 31 March 2007 contain financial instrument disclosures required
by IAS 32 ‘Financial Instruments: Disclosure and Presentation’ and these would also comply with the disclosures required by FRS 25 ‘Financial
Instruments: Disclosureand Presentation ‘. Accordingly, the Company has taken advantage of the exemption in FRS 25 not to present separate
financial instrument disclosures for the Company.
Significant accounting policies
The significant accounting policies of the Company arenoted below.
Tangible fixed assets
Leasehold improvements are depreciated over the shorter of the estimated life of the asset and the remaining life of the lease.
Leases
Gross rental income receivable and payable in respect of operating leases is recognised on a straight line basis over the periods of the leases.
Investments in group undertakings
Investments in group undertakings are stated at cost less provision considered necessary for any impairment.
Impairment of fixed assets
Wherethereis an indication of impairment, fixed assets are subject to review for impairment in accordance with FRS 11 ‘Impairment of Fixed Assets
and Goodwill’. Any impairment is recognised in the year in which it occurs.
Debtors and creditors
Debtors are initially recognised at fair value and carried at the lower of cost and recoverable amount. Where the time value of money is material,
debtors arecarried at amortised cost.
Creditors are initially recognised at fair value and carried at amortised cost if the time value of money is material.
Cash
Cash includes cash on hand, deposits held at call with banks and other short-term highly liquid investments.
Accounting for derivative financial instruments
The Company uses forwardforeign exchange contracts to manage its exposures to fluctuations in foreign exchange rates. The interest differential
reflected in forwardforeign exchange contracts is taken to interest expense.
Forward foreign exchange contracts are recognised at fair value, based on forward foreign exchange market rates at the balance sheet date. Gains
or losses on forward foreign exchange contracts are taken directly to net foreign exchange gains or losses in the profit and loss account.
Deferred tax
Deferred tax is provided in respect of timing differences that have originated but not reversed at the balance sheet date and is determined using the
tax rates that are expected to apply when the timing differences reverse. Deferred tax assets are recognised only to the extent that they are
expected to be recoverable.
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Notes to the parent company financial statements
for the period ended 31 March 2007