International Financial Reporting Standards (IFRS)
This is the first year that the Group has reported its financial statements under IFRS. The impact
of the changes on opening net assets at 1 January 2004 was a modest reduction of £2.8 million.
The changes introduced under IFRS are set out in note 34 to the accounts. Most of the changes are relatively immaterial. The more notable items include translation of earned premium at historic rates when the transactions arose, rather than the average rate for the period that it is recognised in the income statement. Compared to the previous accounting treatment, this change increased profit by £26 million.
Dividends are only recognised when declared or paid. This means that the proposed final dividend for the year is not recognised in the income statement or balance sheet until it is approved at the Annual General Meeting.
|
Print
