Accounting Policies
Basis of preparation
The consolidated financial statements of Uniphar plc and its
subsidiaries (the ‘Group’) have been prepared in accordance
with International Financial Reporting Standards (IFRS) and
interpretations issued by the IFRS Interpretations Committee
(IFRS IC) applicable to companies reporting under IFRS, as
adopted by the EU. The financial statements comply with IFRS
as issued by the International Accounting Standards Board (IASB),
as adopted by the EU and as applied in accordance with the
Companies Acts 2014.
Historical cost convention
The financial statements have been prepared on a historical cost
basis, except for the following:
• available-for-sale financial assets, financial assets and liabilities
(including derivative instruments), certain classes of property,
plant and equipment – measured at fair value;
• defined benefit pension plans – plan assets measured at
fair value.
The preparation of financial statements in conformity with IFRS
requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses
during the reporting period. Actual results could differ from
those estimates.
The financial statements have been prepared on a going concern
basis which assumes that the Group will continue in current
operational existence for the foreseeable future. The directors have
in conjunction with their bankers agreed a credit facility which will
allow the Group to meet its obligations as they fall due.
Foreign currency translation
(i) Functional currency and presentational currency
Items included in the financial statements of each of the
Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (‘the
functional currency’). The consolidated financial statements
are presented in Euro, which is Uniphar Group’s functional and
presentational currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the
functional currency using the exchange rates at the dates
of the transactions. Foreign exchange gains and losses
resulting from the settlement of such transactions and from
the translation of monetary assets and liabilities denominated
in foreign currencies at year end exchange rates are
generally recognised in the Income Statement. They are
deferred in equity if they relate to qualifying cash flow hedges
and qualifying net investment hedges or are attributable
to part of the net investment in a foreign operation.
44 | Annual Report 2016
Accounting Policies
continued
Foreign exchange gains and losses that relate to borrowings
are presented in the Income Statement, within finance costs.
All other foreign exchange gains and losses are presented in
the Income Statement on a net basis within other income or
other expenses.
Non-monetary items that are measured at fair value in a foreign
currency are translated using the exchange rates at the date
when the fair value was determined. Translation differences on
assets and liabilities carried at fair value are reported as part of
the fair value gain or loss. For example, translation differences
on non-monetary assets and liabilities such as equities held
at fair value through the Income Statement are recognised in
the Income Statement as part of the fair value gain or loss and
translation differences on non-monetary assets such as equities
classified as available-for-sale financial assets are recognised in
Other Comprehensive Income.
(iii) Foreign currency translation
On consolidation, exchange differences arising from the
translation of any net investment in foreign entities, and
of borrowings and other financial instruments designated
as hedges of such investments, are recognised in Other
Comprehensive Income. When a foreign operation is sold or
any borrowings forming part of the net investment are repaid,
the associated exchange differences are reclassified to the
Income Statement, as part of the gai