Business
IFRS Impact Statement
IFRS Impact Statement.
About this update from M&c Saatchi Plc
[{"type":"text","content":"\n M&C Saatchi PLC\n21 September 2007\n\n\nM&C SAATCHI PLC\n21 September 2007\n\n\n IMPACT OF IFRS ON FINANCIAL STATEMENTS\n TWELVE MONTHS TO 31 DECEMBER 2006 AND SIX MONTHS TO 30 JUNE 2006\n\n Reconciliation of 2006 annual and interim statements from UK GAAP to IFRS\n following the adoption of IFRS on 1 January 2007.\n\n\nM&C Saatchi plc today restates its consolidated results for the year ended 31\nDecember 2006 and half year ended 30 June 2006. M&C Saatchi plc formally adopted\nIFRS from 1 January 2007 with its date of transition being 1 January 2006.\nFuture consolidated reporting will be in accordance with IFRS as adopted by the\nEuropean Union.\n\n\nThis announcement is unaudited.\n\n\nKey Adjustments\n\n\n •IAS 12 deferred tax on employee options, reduces 2006 annual tax charge\n by £0.03m (£0.02m for 2006 half year).\n\n •IAS 19 employee benefits (holiday pay) has no effect on 2006 annual\n results. It caused 2006 half year statutory and headline profit before tax\n to be reduced by £0.4m.\n\n •Under IFRS 3 business combinations, goodwill is not amortised and is\n tested annually for impairment. This increased 2006 annual statutory\n operating profit by £1.7m (£0.9m for 2006 half year).\n\n •IAS 32 and IAS 39 financial instruments requires us to value put options\n held by minority shareholders, and this has reduced statutory profit before\n and after tax by £9.0m in the 2006 annual results (£0.4m for 2006 half\n year). It has also created a balance sheet liability of £22.3m in the 2006\n annual results (£13.6m for 2006 half year).\n\n\nA reconciliation from statutory profit before tax to headline profit before tax\ncan be seen on the following page.\n\n\nIFRS 1 Relevant exemptions taken\n\n\n •We have not restated our business combinations prior to 1 January 2006\n (IFRS 3).\n\n •Cumulative translation differences on all foreign operations as at 1\n January 2006 are treated as nil (IAS 21)\n\n\nFor further information please call:\n\n\nM&C Saatchi plc 020 7544 3693\n\nAndy Blackstone, Company Secretary\n\n\nNUMIS 020 7260 1000\n\nLee Aston\n\n\nRECONCILIATION HEADLINE TO STATUTORY PROFIT BEFORE TAX\n\n 31 December 30 June 2006\n 2006 annual half year\n £000 £000\n\n\nUK GAAP statutory profit before tax 6,037 2,002\nAdd back amortisation of goodwill 1,735 854\n ----------- -----...