IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

380

Wiley lFRS: Practical lmplementation Guide and Workbook

C8 Related-Party Transaction s During the year, the company has received dividends from Marks and Spencer pic of £205. 2m (last year £2,573.4m) and has made loan repayments of £48.4m (last year [64.9m). There were no other related– party transactions. C9 Adoption of International Financial Reporting Standards Notes' As at Avril 2 2005 As at Avril 3 2004 £m Em Net assets and equity under UK GAAP 5,628.5 5,580.0 Adjustments (afte r taxation) lAS 100"Dividend Recognition " a (81.0) (101.4) lAS 27- "Consolidated and Separate Financial Statements " b 1,397.3 3,024.0 Net assets and equity under IFRS 6,945.8 8,502.6

As at Avril 2 2006 £m 2,516.6

Net incom e under UK GAAP Adjustments (after taxation) lAS 100"Dividend Recognition " lAS 27- "Consolidated and Separate

58.0

a

(1,626.7) 947.9

Financial Statements" Net income under IFRS

b

• Authors' editorial clarification-"Note" a and "Note " b are set out below. a. l AS 10-"Events after the Balance Sheet Date." Under UK GAAP, dividends are recognised in the period to which they relate. lAS 10 requires that dividends declared after the balance sheet date should not be recognised as a liability at that balance sheet date as the liability does not rep– resent a present obligation as defined by lAS 37-Provisions, Contingent Liabilities, and Contin– gent Assets. b. lAS 27- "Con solidated and Separate Financial Statements." Under UK GAAP, the Company 's investment in Marks and Spencer pic was measured at the nominal value of the shares issued. In accordance with lAS 27- "Consolidated and Separate Financial Statements," the Company's in– vestment was restated to the f air value of shares issued with a corresponding entry being made to a merger reserve. During the year ended April 2, 2005 dividends of 1,626.7m were paid out of preacquisition profits. Under lAS 27, this payment is treated as a reduction in the cost of invest– ment and a transfer was made between the profit and loss account and merger reserve.