NOTES TO THE ACCOUNTS GENERAL INFORMATION Segmental reporting The - PDF document

OUR FINANCIALS NOTES TO THE ACCOUNTS GENERAL INFORMATION Segmental reporting The Group’s chief operating decision maker is considered to Consort Medical plc is a public limited company listed on the be the Executive Committee. This committee is responsible London Stock Exchange and is incorporated and domiciled for the executive management of the Group and comprises under the laws of England and Wales, registered number the Chief Executive Officer, the Chief Financial Officer, the 406711. The address of the registered office is given on Company Secretary/Group General Counsel, the General page 139. The nature of the Group’s operations and its Managers of the Group’s Bespak and Aesica businesses principal activities are set out in the operating review on and the Director of Group Human Resources. The Executive pages 16 to 21. Committee meets regularly to make decisions on operational 1. PRESENTATION OF THE FINANCIAL STATEMENTS and strategic matters, other than those reserved for the AND ACCOUNTING POLICIES Board, including allocation of resources and assessment of the performance of the Group. The Group’s operating Basis of preparation segments are determined with reference to the information The financial statements have been prepared in accordance that is supplied to the Executive Committee in order for with the Companies Act 2006 applicable to those companies it to allocate the Group’s resources and to monitor the reporting under IFRS, Article 4 of the IAS Regulation and performance of the Group. Following the acquisition of International Accounting Standards and International Aesica Holdco Limited (“Aesica”) on 12 November 2014, the Financial Reporting Standards (collectively referred to as Executive Committee focuses on the operations of the Group “IFRS”) and related interpretations, as adopted for use in the by the Bespak and Aesica divisions as individual operating European Union in all cases. segments and, as a result, the Group has two reportable segments at the end of the current financial year. Accounting convention The financial statements have been prepared using the Subsidiaries historical cost convention, as modified by certain financial The consolidated financial statements combine the financial assets and financial liabilities (including derivative instruments) statements of the parent company and all its subsidiaries at fair value. The specific accounting policies adopted, which made up to 30 April 2017. Subsidiaries are entities which are have been approved by the Board and which have been directly or indirectly controlled by the Group. The Group applied consistently in all years presented, are described controls an entity when the Group is exposed to, or has within this note. rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power Going concern to direct the activities of the entity. Subsidiaries are fully The directors have a reasonable expectation that the Group consolidated from the date on which control is transferred and the Company have adequate resources to continue in to the Group. They are deconsolidated from the date that operational existence for the foreseeable future as the Group control ceases. The acquisition method of accounting is used has net debt of £92.6m at 30 April 2017 (2016: £97.0m) and to account for the acquisition of subsidiaries by the Group. total banking facilities (including available overdrafts and The cost of an acquisition is measured as the fair value of the using year end exchange rates) of £166.6m, of which £53.6m assets given, equity instruments issued and liabilities incurred is undrawn as at 30 April 2017 and available up to September or assumed at the date of completion. Identifiable assets 2019. The Company has therefore adopted the going acquired and liabilities and contingent liabilities assumed in a concern basis in preparing the accounts. business combination are measured initially at their fair values Consolidation at the acquisition date. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable The financial statements include the financial statements net assets acquired is recorded as goodwill. If the cost of of the Company and all the subsidiaries during the years acquisition is less than the fair value of the net assets of the reported for the periods during which they were members of subsidiary acquired, the difference is recognised directly the Consort Medical plc group (“the Group”). in the income statement. Costs of acquisition are charged Discontinued operations to the income statement in the period in which they are A discontinued operation is a component of the Group’s incurred. business that represents a separate major line of business or Any contingent consideration to be transferred by the Group geographical area of operations that has been disposed of is recognised at fair value at the acquisition date. Subsequent or is held for sale, or is a subsidiary acquired exclusively with changes to the fair value of the contingent consideration a view to resale. Classification of a discontinued operation that is deemed to be an asset or liability are recognised in occurs upon disposal or when the operation meets the criteria accordance with IAS 39, either in profit or loss or as a change to be classified as held for sale, if earlier. When an operation in other comprehensive income. Inter-company transactions, is classified as a discontinued operation, the comparative balances and unrealised gains or losses on transactions income statement is presented as if the operation had between Group undertakings are eliminated. Unrealised discontinued from the start of the prior year. losses are also eliminated but considered an impairment indicator of the asset transferred. Uniform accounting policies have been adopted across the Group. CONSORT MEDICAL PLC 87 Annual Report and Accounts for the year ended 30 April 2017