Marks and Spencer 2004 Annual Report Download - page 44

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Marks and Spencer Group plc
Notes to the financial statements continued
13. TANGIBLE FIXED ASSETS continued
B Investment properties
Freehold land and buildings include investment properties as follows: Group
£m
Cost or valuation
At 30 March 2003 30.5
Revaluation surplus 7.3
At 3 April 2004 37.8
The properties were valued as at 3 April 2004, by qualified professional valuers working for the company of DTZ Debenham
Tie Leung, Chartered Surveyors, acting in the capacity of External Valuers. All such valuers are Chartered Surveyors, being
members of the Royal Institution of Chartered Surveyors.
The properties were valued on the basis of open market value at an aggregate value of £37.8m. All valuations were carried
out in accordance with the RICS Appraisal and Valuation Manual.
C Tangible fixed assets at cost
Gerald Eve, a firm of independent Chartered Surveyors, valued the Group’s freehold and leasehold properties in the United
Kingdom as at 31 March 1982. This valuation was on the basis of open market value for existing use. At 31 March 1988, the
directors, after consultation with Gerald Eve, revalued those of the Group’s properties which had been valued as at 31 March
1982 (excluding subsequent additions and adjusted for disposals). The directors’ valuation was incorporated into the
financial statements at 31 March 1988.
If the Group’s land and buildings had not been valued as set out above, their net book value would have been:
2004 2003
£m £m
At valuation at 31 March 19751227.1 228.7
At cost 1,402.0 1,368.6
1,629.1 1,597.3
Accumulated depreciation (146.3) (146.0)
Closing net book value 1,482.8 1,451.3
1The Group also valued its land and buildings in 1955 and in 1964. In the opinion of the directors, unreasonable expense would be incurred in obtaining
the original costs of the assets valued in those years and in 1975.
14. FIXED ASSET INVESTMENTS Group
A Investments Joint Other Own
venture1investments2shares3Total
£m £m £m £m
Cost
At 30 March 2003 8.8 29.1 2.2 40.1
Prior year adjustment – – (2.2) (2.2)
At 30 March 2003 as restated 8.8 29.1 – 37.9
Additions – 0.6 – 0.6
Disposals – (11.9) – (11.9)
Share of joint venture’s losses (0.3) – – (0.3)
Differences on exchange – (1.9) – (1.9)
At 3 April 2004 8.5 15.9 – 24.4
Accumulated provision and amortisation
At 30 March 2003 – 8.2 0.4 8.6
Prior year adjustment – – (0.4) (0.4)
At 30 March 2003 as restated – 8.2 – 8.2
Provision for impairment – 7.1 – 7.1
Differences on exchange – (0.9) – (0.9)
At 3 April 2004 – 14.4 – 14.4
Net book value
At 3 April 2004 8.5 1.5 – 10.0
At 29 March 2003 as restated 8.8 20.9 – 29.7
1The joint venture represents a 50% equity interest in Hedge End Park Ltd, a property investment company incorporated in Great Britain. The partner
in the joint venture is J Sainsbury plc. The Group’s investment in the joint venture includes accumulated reserves of £2.4m (last year £2.7m).
2Investments include listed securities held by a subsidiary. The difference between their book value and market value is negligible.
3UITF 38 – ‘Accounting for ESOP Trusts’ has been adopted for the first time in these financial statements. As a result, shares in Marks and Spencer
Group plc held by employee share ownership trusts have been reclassified from fixed asset investments to a reduction in shareholders’ funds.
This change has been accounted for as a prior period adjustment and previously reported figures have been restated accordingly.