385 / 488
374
Wiley IFRS: Practical Implementation Guide and Workbook
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
Notes **
33. Adoption of International Financial Reporting Standard s
As
at April
2,
2005
lm
As at April
3,
2004
lm
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
521.4
a
376.2
b
9.8
c
124.3
d
(72.4)
e
(1.8)
f
(21.0)
g
(13.5)
h
(27.2)
13.0
1.3
iQ.2)
2ll2..2
2,454.0
378.5
6.2
160.7
(102.4)
(1.7)
(17.2)
(10.3)
(30.7)
22.7
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
Notes **
a
b
d
e
f
g
h
Year ended April
2,
2005
lm
587.0
1.1
(23.0)
29.9
(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-