1086 AnnRep-Investment S04-3 - Pumpkin Patch investor relations

Forward exchange contracts entered into as hedges of foreign exchange assets and liabilities arevalued at exchange rates prevailing at period end. Any unrealised gains or losses are offset againstforeign exchange gains and losses on the related asset or liability. Premiums paid on currency optionsare amortised over the period to maturity.UnrecognisedFinancial instruments with off-balance sheet risk, have been entered into for the primary purposeof reducing exposure to fluctuations in foreign exchange rates and interest rates. While financialinstruments are subject to risk that market rates may change subsequent to acquisition, such changeswould 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 maturityare recorded at original cost, adjusted for amortisation of premiums and discounts to maturity.Statements of CashflowsThe following are the definitions of the terms used in the Statements of Cashflows:(i)(ii)(iii)(iv)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 thedefinition of cash.Financing activities are those activities which result in changes in the size and composition of thecapital structure of the Group. This includes both equity and debt not falling within the definitionof cash. Dividends paid in relation to the capital structure are included in financing activities.Operating activities include all transactions and other events that are not investing orfinancing activities.Changes in Accounting PoliciesThere were no changes to accounting policies during the period.35