Marks and Spencer 1999 Annual Report Download - page 40

ANNUAL REPORT AND FIN ANCIAL STATEMENTS 1999
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21. Deferred taxation (CO N TIN UED )
B UNPROVIDED DEFERRED TAXATION
THE GRO UP THE CO MPAN Y
2000 1999 2000 1999
£m £m £m £m
Excess of capital allowances over depreciation on tangible fixed assets 219.7 204.3
In the opinion of the directors, the revalued properties will be retained for use in the business and the likelihood of any taxation liability arising is remote.
Accordingly the potential deferred taxation in respect of these properties has not been quantified.
D eferred tax is not provided in respect of liabilities which might arise on the distribution of unappropriated profits of overseas subsidiaries.
22. Currency analysis of net assets
The Group’s borrowings and net assets (excluding borrowings) by currency at 31 March were as follows:
THEGRO UP
2000 1999
Net assets N et assets
by currency by currency
of operations(1) Gross debt(2) Net assets of operations(1) Gross debt(2) N et assets
£m £m £m £m £m £m
Currency
Sterling assets/liabilities 5,905.4 (1,289.0) 4,616.4
Matched assets/liabilities(3)
USdollar 285.0 (203.6) 81.4
O ther 373.9 (174.5) 199.4
Sterling plus total matched assets/liabilities 6,564.3 (1,667.1) 4,897.2
(1) N et assets by currency of operations exclude gross debt and are shown after taking into account the effect of swaps and foreign exchange contracts.
(2) The amounts shown above for gross debt are after taking into account the effect of any currency swaps and forward foreign exchange contracts.
(3) Matched assets and liabilities are those that generate no gain or loss in the profit and loss account, either because they are denominated in the same
currency as the Group operation to which they belong, or because they qualify under SSAP20 as a foreign currency borrowing providing a hedge
against a foreign equity investment.
(4) There were no significant unmatched foreign currency assets or liabilities.
23. Fair values of financial instruments
Set out below is a comparison of current and book values of all the Group’s financial instruments by category.W here market prices are not available for
a particular instrument, fair values have been calculated by discounting cash flows at prevailing interest rates and exchange rates.
THEGRO UP
2000 1999
Book value Fair value Book value Fair value
£m £m £m £m
Assets/(liabilities)
Customer advances falling due in more than one year 1,282.2 1,300.2
Current asset investments(1) 204.0 204.0
Fixed asset investments(2) 37.0 37.0
Cash at bank and in hand(1) 281.5 281.5
Borrowings due within one year(1) (934.7) (936.1)
Financial liabilities due after more than one year(1) (739.6) (745.4)
Interest rate swaps(3) – (12.7)
Forward foreign currency contracts(3) – 9.7
FTSE 100 put options(4) 4.2 8.4
(1) Current asset investments and cash at bank are predominantly short-term deposits placed with banks, financial institutions and on money markets,
and investments in short-term securities. Borrowings are at floating rates.Therefore, fair values closely approximate book values.
(2) Fixed asset investments comprise listed securities held by a subsidiary.
(3) Interest rate swaps and forward foreign currency contracts have been marked to market to produce a fair value figure.
(4) FTSE 100 put options provide no loss guarantees on certain Unit Trust offers.The options are on a fully matched basis and are not traded.
They have been marked to market to produce a fair value figure.
N OTES TO THE FIN AN CIAL STATEMEN TS