Statement of Accounting Policies
for The BSS Group plc Company Accounts
Basis of accounting
The accounts have been prepared under UK GAAP using the historical cost convention modified by the revaluation of certain items as required by UK GAAP and in accordance with the Companies Act 2006 and applicable accounting standards.
The accounting policies adopted in these accounts are consistent with those used in previous years, except where new standards have been adopted as noted below.
Investments
Investments in subsidiary undertakings and joint ventures are included in the financial statements at the lower of cost or net realisable value. In accordance with FRS11, the Company performs impairment reviews where there is an indication that the carrying amount of fixed asset investments may not be recoverable. Where it is established that an asset has been impaired, then an amount equal to the impairment is charged to the profit and loss account in the year of the impairment.
Deferred tax
Provision is made for deferred taxation in so far as a liability or asset arose as a result of transactions that had occurred by the balance sheet date and gave rise to an obligation to pay more tax in the future, or a right to pay less tax in the future with the following exception: Deferred tax assets are recognised only to the extent that the Directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Pension schemes
Contributions to the Group's defined benefit pension schemes are charged in accordance with the advice of the Group's actuaries, so as to spread the cost of pensions over the anticipated service lives of scheme members. Actuarial surpluses and deficits are spread forward over the average remaining service lives of scheme members.
Contributions to defined contribution pension schemes are charged to the profit and loss account as incurred.
Borrowings
Borrowings are carried at their issue proceeds net of finance costs, less amounts repaid. Finance costs are allocated over the term of the borrowings.
Share based benefits
The Group operates various share option schemes. The value of the employee services is determined by reference to the fair value of the options granted using the Black-Scholes valuation model. This value is then expensed in the profit and loss account in the period between grant date and vesting date (vesting period). At each balance sheet date, the Group revises its estimates of the number of options expected to be exercised. Any net proceeds are credited to equity when the options are exercised.
Derivative financial instruments and hedging activities
The Company also enters into derivative financial instrument and hedging activities for which the policy is the same as the Group as set out on Statement of Accounting Policies .
The Company has taken the exemption in FRS 29 'Financial Instruments: Disclosures' as its financial statements are included in the publicly available consolidated financial statements of the Group, which include disclosures that comply with FRS 29.
Cash flow statement
The Company has not prepared a cash flow statement, as allowed by FRS 1 (Revised 1996) 'Cash Flow Statements', as its cash flows are included in the Group Consolidated Cash Flow Statement.
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