Annual Report 2016
Annual Report 2016
Notes to the Financial Statements
Changes in the market value of the assets of the Group ’ s sub-funds of the scheme are as follows :
2016 |
2015 |
( as restated ) |
|
£’ 000 |
£’ 000 |
Opening market value of scheme assets |
270,065 |
233,631 |
Interest on scheme assets |
8,206 |
9,866 |
Actuarial gain /( loss ) |
( 9,768 ) |
31,015 |
Contributions ( employer ) |
2,194 |
4,556 |
Contributions ( employee ) |
— |
639 |
Benefits paid |
( 9,204 ) |
( 9,642 ) |
Closing market value of the scheme assets |
261,493 |
270,065 |
The actual return on assets of the Group ’ s sub-funds of the scheme over the year to 31 March 2016 was a loss of £ 1,237,000 ( 2015 : gain of £ 39,881,000 ). An analysis of the movement in the surplus of the Group ’ s sub-funds of the scheme during the year ended 31 March 2016 is provided in note 22 .
30 Related Party Transactions
78
During the year ended 31 March 2009 , South Staffordshire Water PLC entered into a series of agreements with a parent undertaking , Hydriades I LP . The agreements were put in place to offset the impact on South Staffordshire Water PLC of certain hedging relationships entered into with a third party bank , on both cash flow and the profit and loss account . During the year ended 31 March 2014 the balance in Hydriades I LP was transferred to Selena Bidco Limited , which is a parent undertaking of the Company . The balance due from Selena Bidco Limited in respect of these transactions at 31 March 2016 was £ 4,150,000 ( 2015 : £ 4,270,000 ). This amount has been recognised within debtors in the Group Consolidated Balance Sheet . In accordance with applicable accounting standards , the impact of both arrangements on the profit and loss account of South Staffordshire Water PLC and the Group have been netted off with no overall impact .
31 Explanation of transition to FRS 102
This is the first year that the Group has presented its financial statements under Financial Reporting Standard 102 ( FRS 102 ) issued by the Financial Reporting Council . The last financial statements under previous UK GAAP were for the year ended 31 March 2015 and the date of transition to FRS 102 was therefore 1 April 2014 . As a consequence of adopting FRS 102 , a number of accounting policies have changed to comply with that standard . The following disclosures are required in the first year of adoption .
Reconciliation of Equity
Group |
Company |
At 1 April 2014 |
At 31 March 2015 |
At 1 April 2014 |
At 31 March 2015 |
£’ 000 |
£’ 000 |
£’ 000 |
£’ 000 |
Equity reported under previous UK GAAP 57,142 53,145 53,021 51,037
Adjustments to equity on transition to FRS 102 i - Accounting for infrastructure assets |
14,436 |
11,767 |
— |
— |
ii - Amortisation of infrastructure contributions |
13,521 |
14,712 |
— |
— |
iii - Removal of deferred tax discount |
( 8,823 ) |
( 6,642 ) |
— |
— |
iv - Recognition of deferred tax on infrastructure assets |
( 7,291 ) |
( 6,510 ) |
— |
— |
v - Acquisition accounting adjustments |
— |
— |
— |
— |
vi - Holiday pay accrual |
( 307 ) |
( 307 ) |
— |
— |
vii - Accounting for defined benefit pension schemes |
5,732 |
8,935 |
14,750 |
15,338 |
Equity reported under FRS 102 74,410 75,100 67,771 66,375
Reconciliation of Profit and Loss
Group |
Company |
Year ended 31 March |
Year ended 31 March |
2015 |
2015 |
£’ 000 |
£’ 000 |
Profit on ordinary activities after tax reported under previous UK GAAP 27,705 26,460
Adjustments to equity on transition to FRS 102 i - Accounting for infrastructure assets |
( 2,671 ) |
— |
ii - Amortisation of infrastructure contributions |
1,192 |
— |
iii - Removal of deferred tax discount |
2,181 |
— |
iv - Recognition of deferred tax on infrastructure assets |
781 |
— |
v - Acquisition accounting adjustments |
— |
— |
vi - Holiday pay accrual |
— |
— |
vii - Accounting for defined benefit pension schemes |
( 1,174 ) |
2,412 |
Profit on ordinary activities after tax reported under FRS 102 28,014 28,872
All figures provided above are after accounting for the relevant tax impact of the adjustments required .