Unilever 2015 Annual Report Download - page 163

headng ‘aptal and fundng’ n note 15 to the consoldated
accounts on pages 115 and 116 Unlever 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
DEFERRED TAXATION
Deferred tax s recognsed usng the lablty method on taxable
temporary dfferences between the tax base and the accountng
base of tems ncluded n the balance sheet of the ompany
ertan temporary dfferences are not provded for as follows
• The ntal recognton of assets or labltes that affect nether
accountng nor taxable proft and
• Dfferences relatng to nvestments n subsdares to the extent
that they wll probably not reverse n the foreseeable future
The amount of deferred tax provded s based on the expected
manner of realsaton or settlement of the carryng amount of
assets and labltes, usng tax rates enacted, or substantvely
enacted, at the year end
A deferred tax asset s recognsed only to the extent that t s
probable that future taxable profts wll be avalable aganst whch
the asset can be utlsed Deferred tax assets are reduced to the
extent that t s no longer probable that the related tax beneft wll
be realsed
SHARES HELD BY EMPLOYEE SHARE TRUSTS
Shares held to satsfy optons are accounted for n accordance
wth IAS 32 ‘Fnancal Instruments Presentaton’ and Standards
Interpretaton ommttee 12 ‘onsoldaton of Specal Purpose
Enttes’ (SI 12) 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 reserves
DIVIDENDS
Under IAS 10 ‘Events after the Balance Sheet Date’, proposed
dvdends do not meet the defnton of a lablty untl such tme 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
TAXATION
urrent tax s the expected tax payable on the taxable ncome for
the perod, usng the tax rates enacted or substantvely enacted
at the balance sheet date, and any adustments to tax payable n
respect of prevous perods
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 readly estmated and where
the outflow of economc beneft s probable
FINANIAL UARANTEES
Where the ompany enters n fnancal guarantee contracts to
guarantee the ndebtedness of other companes wthn ts group,
the ompany consders these to be nsurance arrangements and
accounts for them as such In ths respect, the ompany treats the
guarantee contract as a contngent lablty untl such tme as t
becomes probable that the ompany wll be requred to make a
payment under the guarantee
AOUNTIN INFORMATION AND POLIIES
BASIS OF PREPARATION
These fnancal statements were prepared on the gong concern
bass and n accordance wth Fnancal Reportng Standard 101
‘Reduced Dsclosure Framework’ (FRS 101) and the UK ompanes
Act 2006 The ompanes, Partnershp and roups (Accounts and
Reports) Regulatons 2015 have been adopted from 1 January
2015 No proft and loss account s presented by Unlever PL (the
ompany) as permtted by Secton 408 of the 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’ or ‘far value through proft or loss’, as well as
dervatve fnancal nstruments, whch are reported n accordance
wth the accountng polces set out below These have been
consstently appled to all perods presented and n preparng an
openng FRS 101 balance sheet at 1 January 2014 for the purposes
of transton to FRS 101
On transton to FRS 101, the ompany has appled the
requrements of paragraphs 6-33 of IFRS 1 ‘Frst tme adoptons
of Internatonal Fnancal Reportng Standards’ Transton tables
showng all materal adustments are dsclosed n note 14 The
accountng polces whch follow set out those polces whch
apply n preparng the fnancal statements for the year ended
31 December 2015
Unlever PL s ncluded wthn the consoldated fnancal
statements of the roup The consoldated fnancal statements
of the roup are prepared n accordance wth Internatonal
Fnancal Reportng Standards as ssued by the IASB and as
adopted by the European Unon
As permtted by FRS 101, the ompany has taken advantage of the
dsclosure exemptons avalable under that standard n relaton to
share based payments, fnancal nstruments, captal management,
presentaton of comparatve nformaton n respect of certan
assets, presentaton of a cash flow statement, standards not yet
effectve, mparment of assets and related party transactons
Where requred equvalent dsclosures are gven n the group
accounts of Unlever, whch are publcly avalable
AOUNTIN POLIIES
The prncpal accountng polces are as follows
INTANIBLE ASSETS
Fnte lfe ntangble assets manly comprse trademarks
purchased after 1 January 1998 These assets are captalsed and
amortsed on a straght lne bass n the ncome statement over
the perod of ther expected useful lves None of the amortsaton
perods exceed 20 years There are no assets where the useful
lfe cannot be relably determned Indefnte lfe ntangble assets
manly comprse trademarks and brands These assets are
captalsed at cost but not amortsed They are subect to revew
for mparment annually, or more frequently f events or
crcumstances ndcate ths s necessary Any mparment s
charged to the ncome statement as t arses
INVESTMENTS IN SUBSIDIARIES
Shares n group companes are stated at amortsed 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 ompany’s accountng polces are the same as the Unlever
roup’s accountng, namely Internatonal Accountng Standard 32
‘Fnancal Instruments Presentaton’ (IAS 32), 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
156 Unilever Annual Report and Accounts 2015Financial statements
NOTES TO THE OMPANY AOUNTS
UNILEVER PL