Marks and Spencer 2012 Annual Report Download - page 110

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Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 108
Company notes to the financial statements
C1 Accounting policies
The Company’s accounting policies are the same as those set out in note 1 of the Group financial statements, except as
noted below.
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment. The Company grants
share-based payments to the employees of subsidiary companies. Each period the fair value of the employee services received
by the subsidiary as a capital contribution from the Company is reflected as an addition to investments in subsidiaries.
Loans from other Group undertakings and all other payables are initially recorded at fair value, which is generally the proceeds
received. They are then subsequently carried at amortised cost. The loans are non-interest bearing and repayable on demand.
The Company’s financial risk is managed as part of the Group’s strategy and policies as discussed in note 21 of the Group
financial statements.
In accordance with the exemption allowed by Section 408 of the Companies Act 2006, the Company has not presented its own
income statement.
C2 Employees
The Company had no employees during the current or prior year. Directors received emoluments in respect of their services to
the Company during the year of £932,000 (last year £698,000). The Company did not operate any pension schemes during the
current or preceding year.
C3 Auditors’ remuneration
Auditors’ remuneration in respect of the Company’s annual audit has been borne by its subsidiary Marks and Spencer plc and
has been disclosed on a consolidated basis in the Company’s consolidated financial statements as required by Section 494 of
the Companies Act 2006.
C4 Dividends
2012
per share
2011
per share
2012
£m
2011
£m
Dividends on equity ordinary shares
Paid final dividend 10.8p 9.5p 170.2 149.7
Paid interim dividend 6.2p 6.2p 97.6 97.8
17.0p 15.7p 267.8 247.5
In addition, the directors have proposed a final dividend in respect of the year ended 31 March 2012 of 10.8p per share
amounting to a dividend of £172.3m. It will be paid on 13 July 2012 to shareholders who are on the Register of Members on
1 June 2012. In line with the requirements of IAS 10 – ‘Events after the Reporting Period’, this dividend has not been recognised
within these results.
C5 Investments
A. Investments in subsidiary undertakings
2012
£m
2011
£m
Beginning of the year 9,179.8 9,168.6
Additional investment in subsidiary undertakings relating to share-based payments 14.8 11.2
End of year 9,194.6 9,179.8
Shares in subsidiary undertakings represent the Company’s investment in Marks and Spencer plc.