Experian 2008 Annual Report Download - page 136

134 Experian Annual Report 2008
Notes to the parent company financial statements
for the year ended 31 March 2008
A. Corporate information
Experian Group Limited (the ‘Company’) is incorporated and registered in Jersey as a public company limited by shares. 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 (the ‘Group’), whose
principal activity is business services.
The shares of the Company are listed on the London Stock Exchange.
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. The comparative figures cover the period from incorporation on 30 June
2006 to 31 March 2007. The financial statements are presented in 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
by 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
‘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 Group.
The Experian Group Limited consolidated financial statements for the year ended 31 March 2008 contain financial instrument
disclosures required by IFRS 7 ‘Financial Instruments: Disclosure and Presentation’ and these would also comply with the
disclosures required by FRS 29 ‘Financial Instruments: Disclosure and Presentation’. Accordingly, the Company has taken
advantage of the exemption in FRS 29 and has not presented separate financial instrument disclosures.
Significant accounting policies
The significant accounting policies of the Company are noted 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
Where there is 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 are carried 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 in hand, deposits held at call with banks and other short-term highly liquid investments.
Accounting for derivative financial instruments
The Company uses forward foreign exchange contracts to manage its exposures to fluctuations in foreign exchange rates.