Marks and Spencer 2001 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2001 Marks and Spencer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 44

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44

Euro
The announcement of the intention to close all Marks & Spencer
subsidiary stores in Continental Europe has led to a reassessment
of our Euro Programme, but the Group’s presence in the
Republic of Ireland (four stores) and stated intention to accept
the Euro as a foreign currency in the UK, means changes to
systems and training of staff will still be required.
A cost of approximately £2m is expected in financial year
2001/2002 to complete the necessary work, giving an overall
cost for the introduction of the Euro of approximately £8m.
Accounting developments
In November and December 2000, the Accounting Standards
Board issued FRS 17 ‘Retirement Benefits‘, FRS 18 ‘Accounting
Policies’ and FRS 19 ‘Deferred Tax’.
FRS 18 will be implemented for the year ended 31 March 2002
and is not expected to have a material impact on the Group.
FRS 19 will be effective for the year ended 31 March 2002
and will require deferred tax to be recognised on a full
provision basis. Implementing the standard will require a
change in accounting policy since the Group currently provides
deferred tax on timing differences where it is considered
probable that a liability will crystallise. The current level of
unprovided deferred tax is given in note 22 on page 37.
FRS 17 will be fully effective for the year ended 31 March 2004
when a change in accounting policy will be required to recognise
an asset or liability on the Group balance sheet in respect of
the surplus or deficit on the defined benefit pension schemes.
It will also be necessary to recognise immediately actuarial
gains and losses in the statement of total recognised gains
and losses.
Going concern statement
After making enquiries, the directors have a reasonable
expectation that the Group has adequate resources to continue
in operational existence for the foreseeable future. For this
reason, they have adopted the going concern basis in preparing
the financial statements.
www.marksandspencer.com 7