Business
IFRS RESTATEMENT
IFRS RESTATEMENT.
About this update from Nichols Plc
[{"type":"text","content":"\n Nichols PLC\n30 July 2007\n\n\n\n\n\n IFRS RESTATEMENT\n\n\nNichols plc today publishes its analysis of the impact of International\nFinancial Reporting Standards (IFRS) on its results for 2006, together with a\nreconciliation from UK Generally Accepted Accounting Principles (UK GAAP) to\nIFRS.\n\n\n\nIn Summary\n\n\n\n• Profit before taxation on continuing activities for the year ended 31\nDecember 2006 has increased by £512,000 from £4,961,000 to £5,473,000.\n\n• Basic earnings per share for the year ended 31 December 2006 has\nincreased from 15.94p to 17.10p\n\n• There is no impact on underlying cash flow.\n\n\n\n\nRestatement of financial information for 2006 under International Financial\nReporting Standards (IFRS)\n\n\n\nContents\n\n\n\n1. Introduction\n\n2. Basis of Preparation\n\n3. First time adoption of IFRS\n\n4. Review of the main changes arising from the transition from UK GAAP to\n IFRS\n\n5. Restated unaudited preliminary comparative financial information\n\n6. Statement of compliance\n\n7. Accounting policies\n\n\n\nThe following information is unaudited and may be subject to change.\n\n\n\n1. Introduction\n\n\n\nHistorically Nichols plc has prepared its consolidated financial statements in\naccordance with UK Generally Accepted Accounting Principles (UK GAAP). As a\nresult of AIM rule changes, Nichols plc needs to prepare consolidated financial\nstatements in accordance with International Financial Reporting Standards\n(IFRS).\n\n\n\nThis change applies to all accounting periods beginning on or after 1 January\n2007 for AIM listed companies. The group's first Interim Report under IFRS will\nbe for the six months ended 30 June 2007 and its first Annual Report under IFRS\nwill be for the year ended 31 December 2007. Prior period comparatives will be\nrestated to comply with IFRS. These are shown in section 5 of this report.\n\n\n\nSummary of the financial effects of IFRS\n\nThe main impact on the group's income statement is that goodwill is no longer\namortised. Instead goodwill is to be reviewed for impairment annually.\n\n\n\nThere have been a number of other effects but these are balance sheet\nreclassifications only.\n\n\n\n\n\n2. Basis of Preparation\n\n\n\nThe unaudited financial information presented in this document has been prepared\non the basis of all International Financial Reporting Standa...