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| ACCOUNTING POLICIES |
| for the year ended 31 March |
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| BASIS OF PRESENTATION |
| The financial statements of the group are prepared in accordance with International Financial Reporting Standards (IFRS), on the going concern
principle, and using its historical cost basis, except where otherwise indicated. |
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| ACCOUNTING POLICIES |
| The accounting policies are consistent with those applied in the previous year. |
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| PRINCIPLES OF CONSOLIDATION |
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Business combinations |
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Business combinations are accounted for in accordance with the underlying nature of the combination. Acquisitions are accounted for using
purchase accounting. Where an investment in a subsidiary or associated company is acquired or disposed of during the financial year, its results
are included from, or to, the date control became, or ceased to be, effective. Mergers which took place before 31 March 2004, the effective date
of IFRS 3 "Business Combinations" were accounted for using the uniting of interests method. |
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Basis of consolidation |
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The consolidated financial statements incorporate the financial statements of the company and entities controlled by the company (its
subsidiaries) up to 31 March each year. Control is achieved where the company has the power to govern the financial and operating policies of
an investee entity so as to obtain benefits from its activities. On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are
measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets
acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (ie
discount on acquisition) is credited to profit and loss in the period of acquisition. The interest of minority shareholders is stated at the minority's
proportion of the fair values of the assets and liabilities recognised. Subsequently, any losses applicable to the minority interest in excess of the
minority interest are allocated against the interests of the parent.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of
acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group transactions, balances, income and
expenses are eliminated on consolidation. |
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Goodwill |
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Goodwill represents the excess of the cost of an acquisition over the fair value of the group's share of the net assets of its subsidiaries, associates,
joint ventures or intangibles at the date of acquisition.
Goodwill arising on the acquisition of subsidiaries, associates or joint ventures and intangibles, which were not part of the merger in 1998, and
is disclosed as such.
The carrying amount of goodwill is reviewed annually and written down for impairment where considered necessary. |
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Associated companies |
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Associates are those enterprises in which the group holds a long-term equity interest and over which it has the ability to exercise significant
influence, but not control, and which are neither subsidiaries, nor joint ventures. Investments in private equity associates are referred to under
"Private equity investments" on pages 93 and 94.
Equity accounted income, which is included in the carrying values of the associates, represents the group's proportionate share of the associates'
profit after tax, after accounting for dividends payable by those associates. |
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Joint ventures |
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A joint venture is a contractual arrangement whereby the group and other parties undertake an economic activity which is subject to joint control.
Equity accounted income, which is included in the carrying values of joint ventures, represents the group's proportionate share of the joint
ventures' profit before tax, after accounting for dividends payable by the joint ventures. |
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