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This excerpt taken from the ICI 6-K filed Mar 21, 2007. New Accounting Standards International Financial Reporting Standards IFRIC 4 Determining whether an Arrangement contains a Lease came into effect during the year and provides guidance on whether complex arrangements include a lease. As a result of this requirement, certain arrangements have required reclassification as leases. Further details of this and other new Accounting Standards adopted but not yet effective can be found in note 1 relating to the Group accounts on page 69. New US Accounting Standards are disclosed in note 36 relating to the Group accounts on page 124. The Company accounts have been prepared in accordance with UK GAAP. Details of new accounting standards can be found in note (i) relating to the Company accounts on page 138.
This excerpt taken from the ICI 20-F filed Mar 31, 2006. New Accounting Standards International Financial Reporting Standards The Group’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards and IFRIC interpretations in issue that are endorsed by the European Commission and effective (or which ICI has chosen to adopt early) at December 31, 2005 (“adopted IFRS”). Following the announcement by the US Securities and Exchange Commission (“SEC”) to allow an exemption from the provision of a second year of comparatives, ICI decided to take advantage of the exemption and hence the transition date for the adoption of IFRS for the Group is January 1, 2004. All comparative data in these statements has been restated accordingly, except the Group has taken the exemption allowed by IFRS 1 (First-time adoption of International Financial Reporting Standards) not to restate comparatives for IAS 32 – “Financial Instruments: Disclosure and Presentation” and IAS 39 – “Financial Instruments: Recognition and Measurement”. Further details are shown under “Notes relating to the Group accounts – Note 1 – Basis of presentation of financial information” which appears on pages 63 and 64 under Item 18 “Financial Statements” of this Annual Report on Form 20-F. 22 New US standards are outlined under the heading “(l) New US Accounting Standards not yet implemented” under “Notes relating to the Group accounts – Note 36 – Differences between IFRS and US accounting principles”, which appears on page 123 under Item 18 “Financial Statements” of this Annual Report on Form 20-F. In addition, ICI adopted SFAS No. 123 (R) “Share-based Payment” for the first time in 2005, details of which appear under, and are incorporated herein by reference to, “Notes relating to the Group accounts – Note 39 – New US Accounting Standards implemented in the period”, which appears on page 130B under Item 18 “Financial Statements” of this Annual Report on Form 20-F.
The following information, which appears under Item 18 “Financial Statements” of this Annual Report on Form 20-F is incorporated herein by reference: the information set forth under the heading “Notes relating to the Group accounts – Note 22 – Financial Liabilities”, which appears on pages 87 to 89, the information set forth under the heading “Notes relating to the Group accounts – Note 30 – Financial instruments”, which appears on pages 102 to 109; and the information set forth in the table under the heading “Notes relating to the Group accounts – Note 32 – Commitments and contingent liabilities”, which appears on page 111. The information which appears under Item 5(F) “Operating and financial review and prospects –Contractual obligations” of this Annual Report on Form 20-F, which appears on page 27 of this Annual Report on Form 20-F, is also incorporated herein by reference. In addition the following information which appears in the Company’s Annual Report and Accounts 2005 contained in its report on Form 6-K dated March 14, 2006 is incorporated herein by reference: the information set forth in the third paragraph (beginning “Commitments for capital expenditure not provided in the Group’s consolidated financial statements…”) under the heading “Operating and financial review – Capital expenditure”, which appears on page 28 thereof; and the information set forth under the heading “Operating and financial review – Counterparty credit risk”, which appears on page 23 thereof; the information set forth under the heading “Operating and financial review –Treasury policies”, which appears on page 22 thereof; the information set forth under the heading “Operating and financial review – Financing and interest rate risk”, which appears on page 22 thereof; and the information set forth under the heading “Operating and financial review – Foreign currency risk”, which appears on page 23 thereof. As noted in the second paragraph (beginning “The Group has acquired, or is committed to acquire...”) under the heading “Notes relating to the Group accounts – Note 26 – Reconciliation of changes in equity – Limitation of borrowings”, which appears on page 99 under Item 18 “Financial Statements” of this Annual Report on Form 20-F, the Group has acquired or is committed to acquire under forward contracts, shares in the Company, which include collateral requirements relating to the prevailing price of shares in the Company. The operation of the Group’s control procedures gives the Directors a reasonable expectation that the Group has adequate resources to continue in operation for the foreseeable future. Cash flow This commentary relates to the “Group cash flow statement”, which appears on page 62 under Item 18 “Financial Statements” of this Annual Report on Form 20-F. Net cash inflow from operating activities for 2005 was £359m, £32m higher than 2004, with higher operating profit before special items for the Group, a higher cash inflow from movement in working capital, and lower cash outflows in relation to restructuring, offset by higher cash outflows in relation to taxation and dividends. Net cash flow from investing activities was a cash outflow of £106m, which was lower than 2004 by £135m, due primarily to lower net proceeds from the disposal of businesses. Capital expenditure and financial investment for 2005, of £159m, was £1m higher than the £158m outflow in 2004. Payments in respect of disposals prior to 2004 were £47m, compared with £95m in 2004. Acquisitions expenditure was £23m, compared with £4m in 2004. 23 Net proceeds from disposals were £108m in 2005, compared with £279m in 2004, and comprised £128m gross disposal proceeds (2004 £291m) less expenditure against divestment provisions of £20m (2004 £12m). The sale of National Starch’s Vinamul Polymers business, with gross proceeds of £111m received in the first quarter of 2005, was the major contributor to disposal proceeds. The expenditure against divestment provisions related primarily to the divestments of the Vinamul Polymers business and the Quest Food Ingredients business. Dividend payments to the equity holders of the parent of £91m (2004 £82m) comprised the 2004 second interim dividend and the 2005 first interim dividend. Consequently, the Group’s cash inflow before financing activities for 2005 was £253m, £103m lower than the cash inflow of £356m in 2004. The reduction in Group cash flow resulted primarily from lower proceeds from disposals and higher payments in relation to taxation, partially offset by higher operating profit, improved working capital effectiveness and lower payments in relation to restructuring. This excerpt taken from the ICI 6-K filed Mar 14, 2006. New accounting standards FRS 17 – Retirement benefits FRS 20 – Share-based payment FRS 21 – Events after the
balance sheet date FRS 22 – Earnings per share FRS 23 – The effects of
changes in foreign exchange rates FRS 25 – Financial instruments:
Disclosure and presentation FRS 26 – Financial instruments:
Measurement
This excerpt taken from the ICI 6-K filed Mar 16, 2005. New Accounting Standards International Financial Reporting Standards The Company will implement International Financial Reporting Standards (IFRS) for Group financial reporting with effect from 1 January 2005. The transition date for adoption of IFRS has been determined, in accordance with IFRS 1, as 1 January 2004 (subject to finalisation of a proposed Securities Exchange Commission rule on the exemption from provision of a second year of IFRS comparatives). The Group’s approach to this transition together with the principal differences between UK GAAP and IFRS and their effect are set out on page 122. As regards the financial statements of the parent company, for the year to 31 December 2005, which comprise the balance sheet published with the consolidated financial statements and the profit and loss account which is presented to the Board of Directors in accordance with section 230 of the Companies Act 1985, it is the Company’s intention that these will continue to be prepared in accordance with UK GAAP. The only new UK Accounting Standards currently in issue which will materially affect future financial statements of the Company are FRS 17 Retirement benefits (as amended) and FRS 21 Events after the balance sheet date. New US standards are outlined in note 42.
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