Annual report & review 2006 - Shopic.com

Summary financial statements
Notes to Summary Financial Statements
1 Basis of Consolidation
The consolidated financial statements comprise the financial statements of the holding company and all its subsidiary undertakings.
The annual financial statements of all Group undertakings are prepared to the Group’s financial year-end. The attributable results of
acquisitions are included in the financial statements from the date of acquisition. The principal subsidiaries are listed in note 20.
The financial statements have been prepared using the same accounting policies as set out in the financial statements for the year
ended 31 December 2005 with the exception of the accounting policy change following the adoption of Financial Reporting Standard
20 ‘Share-based payment’ (FRS 20) and the adoption of UITF Abstract 38 ‘Accounting for ESOP Trusts’ (UITF 38) in respect of the
Group’s Approved Profit Share Scheme Trust. These changes represent changes in accounting policies and the comparative figures
have been restated accordingly.
The effect of the change in accounting policy on share-based payments was to decrease profit before tax by €1.7 million (2005:
€1.6 million) comprising of an increase in share-based payments included in staff costs (note 3).
The effect of the change in policy in respect of the Group’s Approved Profit Share Scheme Trust was to recognise the shares held
by the trust as own shares and therefore to increase other reserves by €1.5 million at 31 December 2005 and profit and loss account
reserves by €0.6 million.
2 Turnover by Geographical Market
2006 2005
€m €m
Republic of Ireland 2,584.7 2,358.6
United Kingdom 1828.3 1861.5
Spain 180.5 173.5
4,593.5 4,393.6
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Musgrave Group Plc Annual Report & Review 2006