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| NOTES TO FINANCIAL INFORMATION |
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- Accounting policies comply with International
Financial Reporting Standards and, except
for the adoption of IFRIC 4 explained in note
2, have been consistently applied with those
adopted for the year ended 28 February
2006.
- International Financial Reporting Interpretations
Committee (IFRIC) 4 requires lease contracts
embedded in service contracts to be accounted
for in accordance with IAS 17 Leases. The
Group has identified equipment used by third
party distribution center operators as finance
leases and the trucks used by contracted operators
to distribute merchandise to our stores as
operating leases.
The effect of the finance leases was to raise
the value of the assets and the concomitant
liabilities on the balance sheet with no effect
on the Group's equity. The operating leases
(which have no income statement or balance
sheet effect) will require disclosure in the
annual report. Comparative balance sheets
have been adjusted accordingly.
- Revenue comprises turnover, other income,
interest received and dividends received.
- An error was made in the calculation of
operating lease liabilities adjusted for in
the financial statements for the year ended
28 February 2006. This has been corrected
as a prior year adjustment to opening equity
with no effect on comparative earnings.
- Certain comparative income statement classifications
have been changed to accord with those presented
for the year ended 28 February 2006. These
reclassifications had no effect on earnings.
- The weighted average number of shares is
lower than that in issue due to the treasury
shares held by the Group being treated as
cancelled for this calculation.
- The Group has acquired the entire Fruit
& Veg City business, which is subject to certain
suspensive conditions including Competition
Commission approval and the completion of
a due diligence review.
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