Unilever 2013 Annual Report Download - page 147

DIVIDENDS
Under FRS 21 ‘Events after the Balance Sheet Date’, proposed
dividends do not meet the definition of a liability until such time
asthey have been approved by shareholders at the Annual
eneral Meetng Therefore, we do not recognse a lablty n
anyperod for dvdends that have been proposed but wll not be
approved untl after the balance sheet date Ths holds for
externaldvdends as well as ntra-group dvdends pad to
theparentcompany
PROVISIONS
Provsons are recognsed where a legal or constructve oblgaton
exsts at the balance sheet date, as a result of a past event, where
the amount of the oblgaton can be relably estmated and where
the outflow of economc beneft s probable
INTANGIBLE ASSETS
£ million
2013
£ mllon
2012
1 January 166 59
Addtons(a) 44 118
Amortsaton (21) (11)
31 December 189 166
(a) The ncrease n the ntangble assets manly relates to an nternal transfer
of trademarks rghts amountng to £39 mllon (after deducton of 2013
amortsaton of £05 mllon)
INVESTMENTS IN SUBSIDIARIES
£ million
2013
£ mllon
2012
Shares n group companes(b) 8,115 5,979
(b) Investments n subsdares nclude equty shares n Hndustan Unlever
Lmted, a subsdary of the roup, wth a cost of £2,196 mllon (2012 £60
mllon) The roup ncreased ts nvestment n the subsdary by £2,136
mllon n the year (note 15B of the consoldated accounts)
The shares are lsted on the Bombay Stock Exchange and had a market
value of £6,222 mllon (2012 £4,721 mllon) at 31 December 2013 The
carryng value of the nvestments s supported by ther underlyng net
assets
DEBTORS
£ million
2013
£ mllon
2012
Due within one year:
Amounts due from group companes(c) 198 240
Taxaton and socal securty 45 15
Other 51
248 256
(c) Amounts due from group companes nclude balances wth several group
companes whch are nterest bearng at market nterest rates and are
unsecured and repayable on demand f ths s the case
ACCOUNTING INFORMATION AND POLICIES
BASIS OF PREPARATION
The accounts have been prepared on a gong concern bass and n
accordance wth applcable Unted Kngdom accountng standards
and the UK ompanes Act 2006
The accounts are prepared under the hstorcal cost conventon
except for the revaluaton of fnancal assets classfed as
‘avalable-for-sale nvestments’ or ‘far value through proft
orloss’, and ‘dervatve fnancal nstruments’ n accordance
wththe accountng polces set out below whch have been
consstentlyappled
ACCOUNTING POLICIES
The prncpal accountng polces are as follows
INTANIBLE ASSETS
Intangble assets comprse trademarks purchased after
1January 1998 and are amortsed n the proft and loss account
over ther expected useful lves of up to a maxmum of 20 years
These assets are held at cost less accumulated amortsaton
They are subect to revew for mparment n accordance wth
Unted Kngdom Fnancal Reportng Standard 11 ‘Imparment of
Fxed Assets and oodwll’ (FRS 11) Any mparment s charged
tothe proft and loss account as t arses
INVESTMENTS IN SUBSIDIARIES
Shares n group companes are stated at cost less any amounts
wrtten off to reflect a permanent mparment Any mparment
scharged to the proft and loss account as t arses
FINANIAL INSTRUMENTS
The company’s accountng polces under Unted Kngdom
generallyaccepted accountng prncples (UK AAP), namely
FRS25 ‘Fnancal Instruments Presentaton’, FRS 26 ‘Fnancal
Instruments Measurement’ and FRS 29 ‘Fnancal Instruments
Dsclosures’, are the same as the Unlever roup’s accountng
polces under Internatonal Fnancal Reportng Standards (IFRS)
namely IAS 32 ‘Fnancal Instruments Presentaton’, IAS 39
‘Fnancal Instruments Recognton and Measurement’ and
IFRS7 ‘Fnancal Instruments Dsclosures’ Thepolces are set
out under the headng ‘aptal and fundng’ nnote 15 to the
consoldated accounts on pages 115 and 119 PL s takng the
exempton for fnancal nstruments dsclosures, because IFRS 7
dsclosures are gven n notes 15 to 18 to the consoldated
accounts on pages 115 to 129
SHARES HELD BY EMPLOYEE SHARE TRUSTS
Shares held to satsfy optons are accounted for n accordance
wth UKAAP, namely FRS 25 ‘Fnancal Instruments
Presentaton’, FRS20‘Share Based Payments’ and Urgent Issues
Task Force abstract 38 ‘Accountng for ESOP Trusts’ (UITF 38) All
dfferences between thepurchase prce of the shares held to
satsfy optons granted and theproceeds receved for the shares,
whether on exercse or lapse, arecharged to other reserves
144 Unlever Annual Report and Accounts 2013Fnancal statements
NOTES TO THE OMPANY AOUNTS
UNILEVER PL