| ACCOUNTING POLICIES (CONTINUED) |
| for the year ended 31 March |
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| OFF-SETTING |
| Financial assets and liabilities are off-set and the net amount reported in the balance sheet when there is a legally enforceable right to off-set
the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. |
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| REVENUE AND INCOME RECOGNITION |
Fee income is recognised, net of value added tax, once all significant acts relating to services have been executed and the client has been invoiced.
Interest income is recognised on a basis that reflects the effective yield on the underlying instruments.
With the exception of preference share investments, dividends are brought into account as at the last date of registration in respect of listed shares
and when declared in respect of unlisted shares. Where dividends on preference shares are calculated with reference to time and the ultimate receipt
is beyond doubt, dividends are accrued on a daily basis.
Realised and unrealised gains and losses on trading investments are recognised in other income.
Realised and unrealised gains and losses arising from fair value adjustments to private equity and specialised funds investments are recognised in
other income. |
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| BORROWING COSTS |
| All borrowing costs are recognised in profit or loss in the period in which they are incurred. |
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| TREASURY SHARES |
| Shares purchased by subsidiary companies of Brait S.A. are treated as treasury shares and held at cost. In the group financial statements, the cost
of treasury shares is deducted from share capital. Dividends received on treasury shares are eliminated on consolidation. |
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| SHARE-BASED PAYMENTS |
The group has applied the requirements of IFRS 2 "Share-based Payments". In accordance with the transitional provisions, IFRS 2 has been applied
to all grants of equity instruments after 7 November 2002 that had not vested as of 1 January 2005.
The group issues equity-settled share-based payments to certain directors and employees. Equity-settled share-based payments are measured at fair
value at the date of the grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line
basis over the vesting period, based on the group's estimate of shares that will eventually vest.
Fair value is measured by use of a binominal and three-dimensional binominal tree pricing model or the Black Scholes model where applicable. The
expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions
and behavioural considerations. |
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| RELATED-PARTY TRANSACTIONS |
| All related-party transactions are, unless otherwise disclosed, at arm's length and in the normal course of business. |
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| RETIREMENT BENEFIT COSTS |
| Payments to defined contribution retirement benefit plans are charged as an expense as they fall due. |
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| COMPARATIVE FIGURES |
| Where necessary, comparative figures have been restated to conform with changes in presentation in the current year (refer note 40). |
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