BOC Report and accounts 2005 - Alle jaarverslagen

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90 The BOC Group plc Annual report and accounts 2005 Balance sheet of The BOC Group plc At 30 September 2005 2004 Notes £ million £ million Fixed assets Tangible assets 12(e) 14.9 11.3 Investments 13(d) 3,165.8 2,982.6 3,180.7 2,993.9 Current assets Debtors falling due within one year 15(a) 153.0 320.4 Cash at bank and in hand 17 44.3 80.8 197.3 401.2 Creditors: amounts falling due within one year Borrowings and finance leases 18(a) (107.2) (252.1) Other creditors 18(b) (1,005.4) (1,004.1) (1,112.6) (1,256.2) Net current liabilities (915.3) (855.0) Total assets less current liabilities 2,265.4 2,138.9 Creditors: amounts falling due after more than one year Borrowings and finance leases 19(a) (677.0) (674.5) Other creditors 19(b) (0.2) (3.2) (677.2) (677.7) Total net assets 1,588.2 1,461.2 Capital and reserves Equity called up share capital 23 125.6 124.7 Share premium account 24(b) 406.6 374.9 Other reserves 24(b) 336.4 336.4 Profit and loss account 24(b) 769.6 671.0 Own shares 24(b) (50.0) (45.8) Total capital and reserves 1,588.2 1,461.2 The financial statements were approved by the board of directors on 28 November 2005 and are signed on its behalf by: A E Isaac Director A M Ferguson Director
Accounting policies 91 General • Basis of preparationThese financial statements are based on the historical cost accounting convention in accordance with the Companies Act 1985 and comply with all applicable UK accounting standards. UK accounting standards differ in certain respects from those generally accepted in the US and the major effects of these differences in the determination of net income and shareholders’ funds are shown in note 30 to the financial statements. Disclosure requirements of both the UK and US are incorporated throughout the notes to these financial statements. • Basis of consolidationThe Group accounts include the accounts of the parent undertaking and of all subsidiaries, joint ventures and associates. The results of businesses acquired during the year are included from the effective date of acquisition.The results of businesses disposed of during the year are included up to the date of relinquishing control. Material, separately identifiable business segments disposed of are analysed as discontinued operations and prior years’ analyses are restated to reflect those businesses as discontinued. • Accounting policiesThese accounts have been prepared on an accounting basis consistent with that applied in the financial year ended 30 September 2004. • Exchange Profit and loss and other period statements of the Group’s overseas operations are translated at average rates of exchange for the financial year.Assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the financial year end.Assets or liabilities swapped into other currencies are accounted for in those currencies. Exchange differences are dealt with as a movement in reserves where they arise from: i) the translation of the opening net assets of overseas operations; ii) the retranslation of retained earnings of overseas operations from average to closing rates of exchange; and iii) the translation or conversion of foreign currency borrowings taken to hedge overseas assets. All other exchange differences are taken to the profit and loss account.The principal exchange rates affecting the Group are shown in the financial review on page 63. Revenue recognition Turnover is based on the invoiced value of the sale of goods and services, and includes the sales value of long-term contracts appropriate to the state of completion. It excludes sales between Group undertakings,VAT and similar sales-based taxes.Turnover for goods and services is recognised when the significant risks and rewards of ownership are transferred to the customer.This is determined to be when delivery has occurred, title of the goods has passed to the purchaser, and where the price is fixed or determinable and reflects the commercial substance of the transaction. Sales returns are not a significant business issue in the industries in which the Group operates. Revenue on long-term supply contracts with customers generally contains two elements: i) a fixed charge for the use of production or storage facilities.This is recognised on a straight line basis over the period of the contract.Where the charge is in respect of production facilities, it will also typically include the supply of a specified volume of product; ii) a variable charge for the supply of product, or the supply of product in excess of a specified contract volume.This is recognised when the risks and rewards of ownership are transferred to the customer. Profit on long-term contracts is recognised on a percentage of completion basis. Provision is made for all losses incurred together with any foreseeable or anticipated future losses. Retirement benefits Retirement benefits are accounted for under FRS17. For defined benefit schemes the regular service cost of providing retirement benefits to employees during the year is charged to operating profit in the year.The full cost of providing amendments to benefits in respect of past service is also charged to operating profit in the year. A credit representing the expected return on the assets of the retirement benefit schemes during the year is included within other net financing income.This is based on the market value of the assets of the schemes at the start of the financial year. A charge representing the expected increase in the liabilities of the retirement benefit schemes during the year is included within other net financing income.This arises from the liabilities of the schemes being one year closer to payment. Differences between actual and expected returns on assets during the year are recognised in the statement of total recognised gains and losses in the year, together with differences arising from changes in assumptions. For defined contribution schemes the cost of providing benefits is charged to operating profit as incurred. Research and development Revenue expenditure on research and development is written off when incurred. Operating leases The cost of operating leases is written off on the straight line basis over the period of the lease. Intangible fixed assets • Goodwill Goodwill arising on the acquisition of a business, being the excess of the fair value of the purchase price over the fair value of the net assets acquired, is capitalised and amortised on a straight line basis over its useful economic life, generally up to a maximum period of 20 years. An impairment review is carried out at the end of the first full financial year following acquisition.Any impairment in the value of goodwill, calculated by discounting estimated future cash flows, is dealt with in the profit and loss account in the period in which it arises. Negative goodwill, being the excess of the fair value of the net assets acquired over the fair value of the purchase price, is capitalised and amortised on a straight line basis, generally over a period equivalent to the realisation of the non-monetary assets acquired. Goodwill, both positive and negative, arising on acquisitions before 30 September 1998 was taken to reserves and has not been reinstated on the balance sheet.This is in line with the relevant accounting standard on goodwill, FRS10.This goodwill will remain in reserves until such time as it becomes impaired or the business or businesses to which it relates are disposed of, at which time it will be taken to the profit and loss account or statement of total recognised gains and losses where appropriate. • Intangibles Other material intangible assets acquired, such as patents and trademarks, are capitalised and written off on the straight line basis over their effective economic lives.
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BOC Report and accounts 2005
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01 The BOC Group plc is a public li
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Financial highlights 03 Dividends p
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Chairman’s statement 05 Conduct a
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Chief executive’s review 07 Indus
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Board of directors 09 08 09 10 11 1
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Executive management board 11 09 10
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Group five year record 13 Capital e
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Group profile 15 Analysis of result
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Group profile 17 Principal industri
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Group profile 19 In China, signific
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Group profile 21 Sales opportunitie
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Employees 23 At 30 September 2005 t
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Employees 25 Retirement benefit pla
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Social, environmental and ethical p
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Research, development and informati
Page 41 and 42: Risk factors 39 BOC relies on devel
Page 43 and 44: Operating review 41 Exceptional ite
Page 45 and 46: Operating review (comparing 2005 wi
Page 57 and 58: Financial review 55 Net debt/equity
Page 59 and 60: Financial review 57 The balance she
Page 61 and 62: Financial review 59 Manganese litig
Page 63 and 64: Financial review 61 Current asset p
Page 65 and 66: Financial review 63 Average exchang
Page 67 and 68: Corporate governance 65 During the
Page 69 and 70: Corporate governance 67 Performance
Page 71 and 72: Corporate governance 69 During the
Page 73 and 74: Corporate governance 71 There is a
Page 75 and 76: Report on remuneration 73 Variable
Page 77 and 78: Report on remuneration 75 Current m
Page 79 and 80: Report on remuneration 77 Individua
Page 81 and 82: Report on remuneration 79 Executive
Page 83 and 84: Report on remuneration 81 Opening m
Page 85 and 86: Report on remuneration 83 Mr Médor
Page 87 and 88: Report by the independent auditors
Page 89 and 90: Group balance sheet At 30 September
Page 91: Total recognised gains and losses Y
Page 95 and 96: Notes to the financial statements 9
Page 141 and 142: Group undertakings 139 Principal Gr
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Shareholder information 141 The tab
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Shareholder information 143 Taxatio
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Shareholder information 145 Payment
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Glossary of terms 147 Terms used in
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©The BOC Group plc 2005. Designed
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