Accounting policies
FRS 15 tangible fixed assets was implemented in 2000.

The Accounting Standards Board has issued three new standards. FRS 17 retirement benefits has a phased implementation, beginning in 2001 for disclosure, with full implementation in 2002. FRS 18 accounting policies will be implemented in the 2001 financial statements. FRS 19 deferred tax becomes mandatory for 2002 financial statements.

The implementation of UITF 24, Accounting for Start-up Costs, has resulted in a change of accounting presentation for aero-engine certification costs. These were previously included in prepayments and are now treated as intangible fixed assets.

Risk and revenue sharing partners (RRSPs) are a standard form of cooperation within the civil aerospace industry. Partners share in the investment in new programmes and share the risks associated with such programmes in return for a reward based on future programme revenues.

The company has simplified its accounting presentation in respect of RRSPs. All receipts from RRSPs will be recorded as other operating income. In the past, receipts from partners have been treated as either credits to research and development or to turnover depending on the nature of the participation agreement. Payments to risk and revenue sharing partners continue to be recorded within cost of sales.