Under the requirement of Company Act 1985, the annual report of Iceland Group plc, the accounts have been prepared under the historical cost convention and in accordance with applicable Accounting Standard. The Group accounts of Iceland Group plc and all its subsidiary undertaking, applying acquisition accounting principles. Depreciation is provided on a straight-line basis at rates and stocks are stated at the lower of cost and net realizable value.
Deferred taxation is provided using the liability method on all timing differences. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date or if appropriate at the forward contract rate. The accounts of overseas subsidiary undertakings are translated at the rate of exchange ruling at the balance sheet date. Costs of sales represents all costs incurred up to the point of sale including the operating expenses of the trading outlets.
Goodwill arising on acquisitions of subsidiary undertakings and business prior to 3rd January 1998 has been written off against reserves, and was not restarted on implementation of FRS10. Assets held under finance leases are capitalized in the balance sheet and are depreciated over their useful lives. (b) Attempts to comply with Stock Exchange requirements; The annual report and accounts must be issued within six months following the end of the financial period to which they relate.
The following matters are required: Details of the directors' interest at the end of the year in the capital of any member of the group; details of any substantial interests in the share capital other than directors; information on significant contracts in which any director has a material interest; information on significant contracts involving a corporate substantial shareholder; disclosure of any waiver of dividends and/or emoluments by directors or shareholders; a statement by the directors of the reasons for any significant departures from standard accounting practices; a geographical analysis of turnover and trading results for operations outside the UK; a statement of interest capitalized during the year and the treatment of any related tax relief; details of bank loans and overdrafts and other borrowings and the timetable over which they are repayable; an explanation of nay material differences between actual results and any published forecast. To prepare a half-yearly or interim report to be sent to share holders or published in newspapers within the six months following the date of the notice of the annual general meeting
(c) Attempts to comply with the requirements of the professional bodies; Company law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Company and of the Group and of the profit and loss of the Group for that year. For fulfilling those requirements, when in preparing the accounts, the directors have selected suitable accounting policies and then applied them consistently; make judgments and estimates that are reasonable and prudent; and stated applicable accounting standard have followed and subject to any material departures being disclosed and explained in the accounts.
In the Iceland Group plc, the directors have paid responsibility for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Group and to enable them to ensure that the accounts comply with the Companies Act 1985. Responsibilities have also been given for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. (d) Attempts to go beyond the above requirements (a) to (c) by providing other information for economic or other decision making reasons by various users. Beyond those requirements listed above from (a) to (c), other information for economic or other decision making reasons by various users are given voluntarily too. The equity of investor group Necessarily, this group comprised of existing and potential shareholders.
This group is considering whether or not to invest in the business or disinvest. They look for one or combination of two things – income and capital gain. Thus Iceland Group plc disclose its own operating profit – before exceptional items rose by 9 % to 78. 4 million, and the profit before tax on the same basis was up 18. 5 % at 65. 3 million. This produced an 18. 3 increase in underlying diluted earnings per share to 21. 38 pence. Together with the increase in the final dividend (4. 4 pence per share) and interim dividend (2. 0 pence per share). This makes a total for the year of 6. 4 pence, an increase of 10. 3 %. The loan creditor group This group consists of long, medium or short-term lenders of money.
A short-term loan creditor will primarily be interested on the amount of cash a business has got or will very soon get and the Net Realizable value (VRN) of all the assets. A long-term loan creditor will clearly need a correspondingly longer-term view of the firm's future cash position. Therefore those information can be found from the balance sheet and notes to the account of the Iceland Group plc's report. The employee group This group consists of existing and future employees. They want information related to whether or not a fair and open collective bargaining (i. e. wage negotiations) and assessment of present and future job security presented respectively.
In the directors' report, Iceland Group plc committed to support employee by providing personal and career development opportunities, training programmes, surveys and award schemes. Communication with staff is accorded a high priority, such as idea and opinion of management of all levels, and employees are informed of the Group's performance and activities through regular briefings and staff newspaper. A genuine equity of opportunity is given for all employees, regardless of sex, colour, race, religion, ethnic origin or disability. The group also provides employee share schemes and pension and life assurance benefits for both full time and part time employees.