Peachtree 2015 Annual Report Download - page 121
Download and view the complete annual report
Please find page 121 of the 2015 Peachtree 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.-
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
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
 |
 |
The Sage Group plc | Annual Report & Accounts 2015 119
FINANCIAL STATEMENTSGOVERNANCESTRATEGIC REPORT
3.2 Operating profit
Accounting policy
Cost of sales includes items such as third party royalties, transaction and credit card fees related to the provision of payment
processing services and the cost of hardware and inventories. These also include the third party costs of providing training and
professional services to customers. All other operating expenses incurred in the ordinary course of business are recorded in selling
and administrative expenses.
Te g ems have been included in arriving at operating profit Note
2015
£m
2014
£m
Staff costs 3.3 639.2 601.5
Cost of inventories recognised as an expense (included in cost of sales) 8.1 8.0 12.5
Depreciation of property, plant and equipment 7 18.2 18.0
Amortisation of intangible assets 6.2 29.1 24.5
Fair value adjustments and goodwill impairment 3.6 64.5 44.7
Loss on disposal of property, plant and equipment 12.1 – 0.8
Other operating lease rentals payable 27.9 28.8
Net foreign exchange losses/ 0.3 0.1
Acquisition-related items 2.0 2.4
The Group also incurred £141.2m (2014: £131.2m) of research and development expenditure in the year, of which £123.5m (2014: £118.5m)
is included above in staff costs. See note 6.2 for the research and development accounting policy.
Services provided by the Group’s auditors and network firms
During the year, the Group (including its overseas subsidiaries) obtained the following services from the Group’s auditors at costs as
detailed below:
2015
£m
2014
£m
Fees payable to the Group’s auditor for the audit of the Plc’s companies and the consolidated accounts 0.9 0.3
Fees payable to the Group’s auditor for the audit of the Company’s subsidiaries 1.8 1.7
Fees payable to the Group’s auditor for audit-related assurance services 0.1 0.1
Total audit and audit related services 2.8 2.1
Tax compliance services –0.6
Tax advisory services –0.3
Other non-audit services –0.1
Total fees 2.8 3.1
The 2015 Audit fees for the Group are higher than 2014, reflecting the complexities of a first year audit following the recent appointment
of Ernst and Young as the Group’s auditors (2014: PricewaterhouseCoopers). The fees are expected to reduce to historic levels in 2016.
A summary of the Board’s policy in respect of the procurement of non-audit services for the Group’s auditor is set out on page 72.