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70 Experian Annual Report 2008
1. Corporate information
Experian Group Limited (the ‘Company’), which is the ultimate parent company of the Experian Group, is incorporated and
registered in Jersey under Jersey Companies Law as a public company limited by shares. The Company’s shares are listed on
the London Stock Exchange. Experian is a business services group.
The consolidated financial statements of Experian Group Limited and its subsidiary undertakings (‘Experian’ or ‘the Group’)
were approved by the Board on 20 May 2008.
2. Basis of preparation and significant accounting policies
Basis of preparation
The Group financial statements are presented in US Dollars as this is the most representative currency of the Group’s
operations. The financial statements are rounded to the nearest million. They are prepared on the historical cost basis
modified for the revaluation of certain financial instruments. The principal exchange rates used in preparing the Group
financial statements are set out in note 6.
In compliance with the requirements for companies whose shares are listed on the London Stock Exchange, the financial
statements of the Company are included within the Group annual report and they are set out on pages 132 to 141. These
are presented in Sterling as that is the functional currency of the Company. In determining its functional currency, the
directors have taken account of the fact that the assets and liabilities and cash flows of Experian Group Limited are primarily
denominated in Sterling. The Company has elected to prepare its financial statements under UK accounting standards.
The Group financial statements are prepared in accordance with International Financial Reporting Standards (‘IFRS’) as adopted
for use in the European Union (the ‘EU’) and as issued by the International Accounting Standards Board (‘IASB’). These are those
standards, subsequent amendments and related interpretations issued and adopted by the IASB that have been endorsed by the
EU. Although the Company is incorporated and registered in Jersey, the Group financial statements include disclosures sufficient
to comply with those parts of the UK Companies Act 1985 applicable to companies reporting under IFRS.
As indicated below, during the year ended 31 March 2008, there have been a number of new accounting standards, amendments
and interpretations effective for accounting periods beginning on or after 1 April 2007. None of these has had a material impact
on the results or financial position of the Group for the year under review although, in accordance with the requirement of
IFRS 7 ‘Financial Instruments: Disclosures’, gains and losses on fair value hedges are now reported on a gross basis in the
Group income statement. Comparative figures have been restated and the effect is to increase financing income and financing
expense for the year ended 31 March 2007 by US$55m. In addition pension assets and liabilities are now reported separately in
the Group balance sheet where there is no right of offset and accordingly liabilities of US$50m are now reported as retirement
benefit obligations at 31 March 2008. Comparative figures have been restated and the effect is to increase non-current assets
and non-current liabilities at 31 March 2007 by US$56m. With these exceptions, the financial information has accordingly been
prepared on a consistent basis with that reported for the year ended 31 March 2007 although, following the acquisition of a
70% stake in Serasa during the year, the segmental information presented in respect of the Americas in note 5 is now further
analysed to show North and Latin America as separate segments.
In connection with the acquisition of the 70% stake in Serasa, the Group entered into a put/call option agreement over the
remaining shares held by the minority shareholders. In accordance with IAS 39 ‘Financial Instruments: Recognition and
Measurement’ the put element is shown as a liability stated at the net present value of the expected future payments and in
accordance with IAS 1 ‘Presentation of Financial Statements’ this liability is shown as a non-current financial liability. The
net present value of the put option was reassessed at 31 March 2008 and the change since the date of acquisition has been
recognised in the Group income statement within finance income.
On 10 October 2006, the separation of Experian and Home Retail Group was completed by way of demerger. As part of the
demerger, the Company became the ultimate holding company of GUS plc (now Experian Finance plc) and related subsidiaries
and shares in GUS plc ceased to be listed on the London Stock Exchange on 6 October 2006. Trading of shares in the Company on
the London Stock Exchange commenced on 11 October 2006. As reported last year, the demerger transaction was accounted for
using the principles of merger accounting set out in FRS 6 ‘Acquisitions and Mergers’ and UK Generally Accepted Accounting
Principles (‘UK GAAP’). This policy, which does not conflict with IFRS, reflected the economic substance of the transaction.
The distribution to GUS plc shareholders of shares in Home Retail Group plc was accounted for as a dividend in specie.
Recent accounting developments
IFRS 7 ‘Financial Instruments: Disclosures’ and the complementary amendment to IAS 1 ‘Presentation of Financial
Statements – Capital Disclosures’ are effective for accounting periods beginning on or after 1 January 2007 and accordingly
have been adopted by the Group during the year. Their effect is to revise and enhance previous disclosures required by IAS
32 and IAS 30 ‘Disclosures in the Financial Statements of Banks and Similar Financial Institutions’ but they have no material
effect on the results and net assets of the Group. As indicated above, in accordance with the requirements of IFRS 7, gains
and losses on fair value hedges are now reported on a gross basis in the Group income statement and comparative figures
have been restated. Revised and enhanced disclosures have been given in these financial statements in respect of the year
ended 31 March 2008 and comparative information has been restated as appropriate. The qualitative analysis required to be
given in connection with IFRS 7 is set out in note 3 to the financial statements.
Notes to the Group financial statements
for the year ended 31 March 2008