IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

Wiley IFRS: Practical Implementation Guide and Workbook

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Share-based payments: Th e Group has not adopted the exe mpt ion to app ly IFRS 2, Share– Based Payments, only to awards made after Nov ember 7, 2002. Instead, a full retrospective ap– proach has been followed on all awards granted but not fully vested at the date of tra nsit ion to mai ntain consistency across reporting periods; and • Cumulative tra nslation differences : The cumula tive tran slation differences for all foreign opera– tions are deemed to be zero at the date of tran sition to IFRS.

20.2 MARKS AND SPENCER GROUP pic Notes to the Financial Statements

33. Adoption of International Financial Reporting Standard s

As at April 2, 2005 lm

As at April 3, 2004 lm

Notes **

Net assets and equity under UK GAAP Adjustments (after taxation) lFRS I- Property Revaluation lFRS 2-Share Schemes lAS ID-Dividend Recognition lAS 17-Leases -Treatment of leasehold land -Finance leases - Lease incentives - Fixed rental uplifts lAS 19- Employee Benefits lAS 38-lntangible Assets -Software assets - Goodwill and brands Other Net assets and equi ty under IFRS

2,454.0

521.4

376.2

378.5 6.2 160.7

a

9.8

b

124.3

c

(102.4) (1.7)

(72.4)

d e

(1.8)

(17.2) (10.3) (30.7)

(21.0) (13.5) (27.2) 13.0 1.3 iQ.2)

f

g h

22.7

2ll2..2

Year ended April 2, 2005 lm 587.0

Notes **

Net income under UK GAAP Adjustments (before taxation) lFRS I- Property Revaluation IFRS 2-Share Schemes lAS 17-Leases - Treatment of leasehold land -Finance leases - Lease incentives -Fixed rental uplifts lAS 19-Employee Benefits lAS 38- lntangible Assets Software assets Goodwill and brands Other Taxation Discontinued operations-software assets Net income under lFRS

a b

1.1 (23.0)

29.9

d e f g h

(0.2) (5.1) (4.5) 5.3 1.4 0.5 illl)

5.3 4.6 (10.7) 5.8.6..2 ** Autho rs' editorial clarification of "Notes" a, b, c, d, e. ], g, h, i, andj are set out below: a. IFRS I-Property Revaluation Under UK GAAP, property was stated at historical cost, subject to certain prope rties having been revalued as at March 31, 1988. A prope rty revaluation was prepared on an existing use basis by externa l valuers D1Z Debenham Tie Leung as at April 2, 2004. The Group has elected under IFRS 1 to reflect this valuation, in so fo r as it relates to f reehold land and buildings, as deemed cost on transition at April 4, 2004. b. IFRS 2-Share Schemes The Group operates a range of share-based incentive schemes. Under UK GAAP, where shares (or rights to shares) were awarded to employees, U1TF 17 required that the charge to the profit and loss account should be based on the difference between the market value of shares at the date of grant and the exercise price ii.e., an intrinsic value basis) spread over the performance period. Save as You Earn (SAYE) schemes were exempt fr om this requirement and no charge was made. IFRS 2 requires that all shares or options (including SAYE) awarded to employees as remunera-