Business
Adoption of IFRS
Adoption of IFRS.
About this update from Tekmar Group Plc
[{"type":"text","content":"\n TG21 Plc\n21 September 2007\n\n\n21 September 2007\n\n\n TG21 plc ('TG21', 'the Company' or 'the Group')\n\n Adoption of International Financial Reporting Standards ('IFRS')\n\n\n\nINTRODUCTION\n\n\nAs required by the AIM Rules for Companies and European Union Law, the Company\nwill prepare its consolidated financial statements under International Financial\nReporting Standards ('IFRS') with effect from 1 January 2007. Previously the\nCompany has applied United Kingdom Generally Accepted Accounting Principles ('UK\nGAAP'). The first financial statements that will be prepared for the Group under\nIFRS will be the unaudited interim results for the six months to 30 June 2007\nfollowed by the audited financial statements for the year ending 31 December\n2007. These financial statements will include IFRS restated 2006 comparative\nfigures and, consequently, the transition date for the Group's adoption of IFRS\nis 1 January 2006.\n\n\nThe key changes for the Group are:\n\n\n •Non-amortisation of goodwill from 1 January 2006\n •Inclusion of a deferred tax charge in respect of the property revaluation\n as at 1 January 2006\n •Reversal of the hindsight adjustment made to goodwill in the year ended\n 31 December 2006\n •Full recognition of the total deferred tax asset arising on decelerated\n capital allowances at 1 January 2006\n •Inclusion of interest rate swap agreements and forward currency contracts\n in the balance sheets at their fair value\n •Balance sheet reclassification of computer software and website\n development costs to intangible assets\n\n\nThe net impact of these changes is that for the year ended 31 December 2006 the\nGroup's profit after minority interest increased from £1,000 to £400,000 (EPS up\nfrom 0p to 0.49p).\n\n\nThis document sets out the following:\n\n\n •A commentary on the key issues arising from the adoption of IFRS\n •The Group's accounting policies under IFRS\n •The opening IFRS consolidated balance sheet as at 1 January 2006 for the\n Group reconciled to the previously published UK GAAP balance sheet at this\n date\n •The IFRS balance sheet as at 31 December 2006 for the Group reconciled to\n the previously published UK GAAP balance sheet at this date\n •The IFRS consolidated income statement for the six months ended 30 June\n 2006 reconciled to the previously published UK G...