Experian 2011 Annual Report Download - page 154

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152 ExperianAnnualReport2011
Notes to the parent company nancial statements
for the year ended 31 March 2011
A. Corporate information
Experian plc (the ‘Company’) is incorporated and registered in Jersey under Jersey company law as a public company limited by shares and
is resident in Ireland. The principal legislation under which the Company operates is the Companies (Jersey) Law 1991, as amended, and
regulations made thereunder. The address of its registered ofce is 22 Grenville Street, St Helier, Jersey JE4 8PX.
The Company is the ultimate holding company of the Experian group of companies (the ‘Group’) and its ordinary shares are traded on the
London Stock Exchange’s Regulated Market (Premium Listing). Experian is a global information services group.
B. Basis of preparation
The separate nancial statements of the Company are presented in compliance with the requirements for companies whose shares are traded
on the London Stock Exchange’s Regulated Market. They have been prepared on a going concern basis and under the historical cost convention,
modied by the revaluation of certain nancial instruments, and in accordance with the Companies (Jersey) Law 1991 and UK Generally
Accepted Accounting Practice (‘UK GAAP’). Although the Company is incorporated and registered in Jersey, these nancial statements are
designed to include disclosures sufcient to comply with those parts of the UK Companies Act 2006 applicable to companies reporting under
UK GAAP.
These nancial statements are presented in US dollars, the Company's functional currency, and comprise the prot and loss account, balance
sheet and related notes. Under the terms of Financial Reporting Standard (‘FRS’) 1 ‘Cash ow statements’, the Company is exempt from
publishing a cash ow statement and, under the terms of FRS 8 ‘Related party disclosures’, is also exempt from disclosing transactions with
wholly-owned members of the Group.
The Experian plc Group nancial statements for the year ended 31 March 2011 contain nancial 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 nancial instrument disclosures.
C. Comparative information
As indicated in note 3 to the Experian plc Group nancial statements, a new format has been adopted in the Group income statement for the
year ended 31 March 2011 and costs therein are now reported by nature rather than by function, with comparativegures re-presented. In the
light of this, the directors have reviewed the presentation of the Company prot and loss account and it is now prepared with reference to Format
2 of Schedule 1, Part 1, of The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (‘the Regulations’).
Comparativegures, which were previously prepared with reference to Format 1 of the Regulations, have been re-presented.
D. 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.
Tangible xed assets
Leasehold improvements are held at cost less accumulated depreciation. Cost includes the original purchase price and amounts attributable
to bringing the asset to its working condition for its intended use. Depreciation is charged so as to write off such assets on a straight line basis
over the shorter of their estimated life and the remaining period of the lease.
Operating leases
Leases in which a signicant portion of the risks and rewards of ownership are retained by the lessor are classied as operating leases and
not capitalised. Payments made under operating leases are charged in the prot and loss account on a straight line basis over the period of the
lease.
Investments - shares in Group undertakings
Investments in Group undertakings are stated at cost less any provisions necessary for permanent diminution in value. The fair value of share
incentives issued by the Company to employees of subsidiary undertakings is accounted for as a capital contribution and recognised as an
increase in the Company's investment in Group undertakings with a corresponding increase in total shareholders' funds.
Impairment of xed assets
Where there is an indication of impairment, xed assets are subject to review for impairment in accordance with FRS 11 ‘Impairment of xed
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 subsequently measured at this value. Where the time value of money is material, such items are
carried at amortised cost using the effective interest rate method. Creditors are initially recognised at fair value. Where the time value of money
is material such items are carried at amortised cost using the effective interest rate method.
Cash at bank and in hand
Cash at bank includes deposits held at call with banks and other short-term highly liquid investments.
Accounting for derivative nancial instruments
The Company uses forward foreign exchange contracts to manage its exposures to uctuations in foreign exchange rates. The interest
differential reected in forward foreign exchange contracts is taken to interest receivable and similar income or interest payable and similar
charges. 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 to the prot and loss account in the year in which they arise.