Experian 2011 Annual Report Download - page 100

98 Experian Annual Report 2011
Notes to the Group nancial statements continued
4. Recent accounting developments (continued)
At the balance sheet date, the following accounting standards, amendments and interpretations had been issued but they are not yet effective
for the Group and, except as indicated in note 3 in respect of IAS 1, have not been early adopted:
•Improvements to IFRSs (April 2010)
•IAS 24 (revised) ‘Related party disclosures’
•Amendments to IFRIC 9 and IAS 39 ‘Embedded derivatives’
•Amendment to IFRIC 14 ‘Prepayment of a minimum funding requirement’
•IFRIC 19 ‘Extinguishing nancial liabilities with equity instruments’
If these accounting standards, amendments and interpretations had been adopted in full, there would have been no material effect on the
results or nancial position of the Group disclosed within these nancial statements.
5. Signicant accounting policies
The principal accounting policies applied in the preparation of these nancial statements are set out below. These policies have been
consistently applied to both years presented, unless otherwise stated.
(a) Basis of consolidation
Subsidiaries
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They cease to be consolidated from the date that
the Group no longer has control. As required by IFRS 3, all business combinations are accounted for using the acquisition method.
Intra-group transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Accounting policies of subsidiaries and segments are consistent with the policies adopted by the Group for the purposes of the Group’s
consolidation. The Group nancial statements incorporate the nancial statements of the Company and its subsidiary undertakings for the
nancial year ended 31 March 2011. A list of the signicant subsidiaries is given in note U to the parent company nancial statements.
Non-controlling interests
In accordance with IAS 27, the Group now applies a policy of treating transactions with non-controlling interests as transactions with equity
owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share
acquired of the carrying value of the net assets of the subsidiary is now recorded in equity. Gains or losses on disposals to non-controlling
interests are also now recorded in equity.
Associates
Associates are entities over which the Group has signicant inuence but not control, generally achieved by a shareholding of between 20% and
50% of the voting rights. The equity method is used to account for investments in associates and investments are initially recognised at cost.
The Group’s share of net assets of its associates and loans made to associates are included in the Group balance sheet. The Group’s share of
its associates’ post-acquisition prots or losses is recognised in the Group income statement, and its share of post-acquisition movements
in equity is recognised in the Group statement of changes in total equity. The cumulative post-acquisition movements are adjusted against the
carrying amount of the investment. The carrying amount of an investment in an associate is tested for impairment by comparing its recoverable
amount to its carrying amount whenever there is an indication that the investment may be impaired.
(b) Foreign currency translation
Transactions and balances
Transactions in foreign currencies are recorded in the functional currency of the relevant Group undertaking at the exchange rate prevailing
on the date of the transaction. At each balance sheet date, monetary assets and liabilities denominated in foreign currencies are retranslated
at the exchange rate prevailing at the balance sheet date. Translation differences on monetary items are taken to the Group income statement
except when recognised in other comprehensive income, as qualifying net investment hedges or cash ow hedges.
Translation differences on non-monetary available for sale nancial assets are reported as part of the fair value gains or losses in other
comprehensive income.
Group undertakings
The results and nancial position of Group undertakings whose functional currencies are not US dollars are translated into US dollars as
follows:
- Assets and liabilities are translated at the closing exchange rate at the balance sheet date;
-Income and expenses are translated at the average exchange rate for the year (unless this average is not a reasonable approximation of
the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rates on the
dates of the transactions); and
-All resulting exchange differences are recognised in other comprehensive income and as a separate component of equity.