Marks and Spencer 1999 Annual Report Download - page 28

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ANNUAL REPORT AND FIN ANCIAL STATEMENTS 1999
26
3. O perating profit (CO N TIN UED )
(3) Included in ‘other costs’ is the remuneration to the auditors for audit and non-audit services as follows:
THE GRO UP TH E CO MPAN Y
2000 1999 2000 1999
£m £m £m £m
Audit fees 0.9 0.4
N on-audit services
PricewaterhouseCoopers 0.2 –
Coopers & Lybrand 0.2 –
Price W aterhouse 0.1 –
Total non-audit services 0.5 –
N on-audit services paid to Coopers & Lybrand and Price W aterhouse are disclosed as they are predecessor partnerships of PricewaterhouseCoopers.
Fees paid for non-audit services are principally for taxation advice.
(4) O ther costs for last year are stated after crediting £• m received in respect of VAT overpaid on sales of earlier accounting periods following the Court
of Appeal decision in a case brought by Littlewoods Home Shopping.The decision clarified how VAT should be calculated on retail sales, amending
previous interpretation.
(5) Included in total other expenses are rentals under operating leases, comprising £• m for hire of plant and machinery (last year £8.9m) and £• m of
other rental costs (last year £111.4m).
(6) As discussed in note 11B, the Group has amended its depreciation policy following the publication of FRS15.The effect of these changes is to increase
the depreciation charge for the year by £• m (last year £39.4m) and reduce the charge for repairs and renewals by £• m (last year £18.3m).The net
effect is to decrease operating profits for the years ended 31 March 2000 and 1999 by £• m and £• m respectively. In addition, the Group has
accelerated depreciation on certain items of store equipment which are to be replaced next year, with the result that the depreciation charge for the
year has been increased by a further £• m.
4. N et interest income
2000 1999
£m £m £m £m
Bank and other interest income 306.1
Less: amounts included in turnover of Financial Services (278.2)
27.9
Interest expenditure (76.8)
Less: intra group interest charged to cost of sales 76.8
–
N et interest income 27.9
Interest expenditure comprises:
Amounts repayable within five years:
Bank loans, overdrafts and commercial paper (30.5)
Medium term notes (36.2)
73⁄8% Guaranteed bonds 1999 (8.1)
US$ Promissory note 1999 (2.0)
(76.8)
N OTES TO THE FIN AN CIAL STATEMEN TS