annual report 2005 - Pumpkin Patch investor relations

Pumpkin Patch Limited & Subsidiaries statements of accounting policies
for the 12 months ended 31 July 2005
financial instruments
recognised
Financial instruments carried on the statements of financial position include cash and bank balances, investments,
receivables, trade creditors and borrowings. The particular recognition methods adopted are disclosed in the individual
policy statements associated with each item.
Forward exchange contracts entered into as hedges of foreign exchange assets and liabilities are valued at exchange
rates prevailing at period end. Any unrealised gains or losses are offset against foreign exchange gains and losses
on the related asset or liability. Premiums paid on currency options are amortised over the period to maturity.
unrecognised
Financial instruments with off-balance sheet risk, have been entered into for the primary purpose of reducing
exposure to fluctuations in foreign exchange rates and interest rates. While financial instruments are subject to risk that
market rates may change subsequent to acquisition, such changes would generally be offset by opposite effects on the
items hedged.
Financial instruments purchased with the intention to be held for the long term or until maturity are recorded
at original cost, adjusted for amortisation of premiums and discounts to maturity.
statements of cashflows
The following are the definitions of the terms used in the statements of cashflows:
i)
ii)
Cash is considered to be cash on hand and current accounts in the bank, net of bank overdrafts.
Investing activities are those activities relating to the acquisition, holding and disposal of property, plant and
equipment and of investments. Investments can include securities not falling within the definition of cash.
iii) Financing activities are those activities which result in changes in the size and composition of the capital structure of
the Group. This includes both equity and debt not falling within the definition of cash. Dividends paid in relation to
the capital structure are included in financing activities.
iv)
Operating activities include all transactions and other events that are not investing or financing activities.
changes in accounting policies
There were no changes to accounting policies during the period.
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