Business
Adoption of IFRS
Adoption of IFRS.
About this update from James Fisher And Sons Plc
[{"type":"text","content":"\n Fisher (James) & Sons PLC\n18 August 2005\n\n\n\n JAMES FISHER AND SONS\n PUBLIC LIMITED COMPANY\n Adoption of International Financial Reporting Standards\n\n1. Key Points\n\n • No impact on trading cash flows\n • Reported pre tax profit for 2004 increases by £1.023m to £14.114m\n • Reported net assets at 31 December 2004 decreases to £83.331m from\n £91.041m\n • Gearing increased from 40% to 44% as a result of reduction in total\n equity due primarily to inclusion of Pension Fund deficit.\n\n2. Introduction\n\nIn accordance with European Regulations for listed entities, James Fisher & Sons\nPLC is required to adopt International Financial Reporting Standards ('IFRS')\nfor its consolidated accounts for accounting periods commencing 1 January 2005.\nThe Group's first published interim statements under IFRS will be the results\nfor the six months to 30 June 2005. As already announced these will be published\non 23 August 2005.\n\nIn advance of the publication of future results on an IFRS basis, we set out\nbelow an unaudited restatement of financial statements which were previously\nreported under UK Generally Accepted Accounting Practice ('UK GAAP'), together\nwith a summary and explanations of the major changes. These adjustments are\nexplained in detail in later sections of this document.\n\nThe major accounting changes which are required by the introduction of IFRS are:\n\n • Pensions - The Group's obligations in respect of deficits arising in the\n Group's Shore Staff and Dockworkers defined benefit pension schemes are\n recognised on the balance sheet from 1 January 2004.\n\n • Goodwill will no longer be amortised through the income statement and is\n instead included at cost and is subject to an annual impairment review. The\n amortisation for the year ended 31 December 2004 is reversed as part of the\n IFRS restatement.\n\n • The fair value of share-based payments is recorded as an expense in the\n income statement.\n\nThere are also significant changes in the presentation of the financial\nstatements including the presentation of the results of equity accounted joint\nventures.\n\nThe Group has decided not to adopt retrospectively IAS 32 and IAS 39 in respect\nof financial instruments and will apply these from 1 January 2005. The principal\neffects of applying these standards are as follows:\n...