annington annual rep 2019-web - Page 82



Financial statements | Company cash flow statement
Notes to the Company financial statements
COMPANY CASH FLOW STATEMENT
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
FOR THE YEAR ENDED 31 MARCH 2019
Note
2019
£’000
2018
£’000
h
-
-
Investment in subsidiary
-
164,000
Net cash inflow from investing activities
-
164,000
Net cash from operating activities
Investing activities
Financing activities
Share issue
-
(164,000)
Net cash outflow from financing activities
-
(164,000)
Net decrease in cash and cash equivalents
-
-
Cash and cash equivalents at the beginning of the year
-
-
Cash and cash equivalents at the end of the year
-
-

A. SIGNIFICANT ACCOUNTING POLICIES AND CORPORATE
INFORMATION
The separate financial statements of the Company have been
prepared in accordance with International Financial Reporting
Standards (“IFRS”) and interpretations as adopted by the
European Union. They have also been prepared in accordance
with the Companies Act 2006.
The corporate information and significant accounting policies
of the Company are consistent with those of the Group, which
can be found in the Notes to the Consolidated Financial
Statements.
The fair value of the investment in subsidiaries is determined
by a Level 2 valuation technique, as described below.
At 1 April
Additional investment
Increase/(decrease) in fair value
during the year
At 31 March
2019
£’000
2018
£’000
2,530,400
2,516,500
-
480,501
832,400
(466,601)
3,362,800
2,530,400
Significant judgements and key estimation uncertainties
Investment in subsidiary companies’ valuations
In calculating the fair value of investment in subsidiaries, the
selection of comparable companies is made subjectively by
reviewing publicly available information. Further, the underlying
asset values within the Group are subject to judgements and
estimates, changes in which could change the valuation base.
B. PROFIT FOR THE YEAR
As permitted by section 408 of the Companies Act 2006 the
Company has elected not to present its own income statement
or statement of comprehensive income for the year. The profit
attributable to the Company is disclosed in the footnote to the
Company’s balance sheet.
The auditor’s remuneration for audit and other services is
disclosed in Note 5 to the Consolidated Financial Statements.
C. INVESTMENT IN SUBSIDIARY COMPANIES
ACCOUNTING POLICY
The historical cost of the investment in subsidiaries was
£565,256,967 (2018: £565,256,967).
Fair value is measured by applying to the net asset value
of investees an estimated discount or premium determined
through an analysis of comparable FTSE 100 and FTSE 250
companies. The selection criteria for comparable companies
was applied to entities operating within the property sector
and took into account factors including the size of the company
and the presence of residential operations within the company.
The discount or premium was determined based on market
capitalisation and the resultant discount to/premium over the
net asset value. The result, a 7% discount (2018: 22% discount),
was applied to the net asset values (adjusted to bring book
values to fair values for classes of assets and liabilities carried
at book value) of each of the Company’s subsidiaries to arrive
at fair value.
The fair value gain of £832.4 million (2018: loss of
£466.6 million) was recognised through other comprehensive
income.
Details of all subsidiaries as at 31 March 2019 are shown in
Note 31 to the Consolidated Financial Statements.
The Company has elected to account for its investments
in subsidiaries at fair value. Fair value is determined by
reference to the discount or premium to net asset value of
similar investments listed on the London Stock Exchange. If
the carrying amount is increased or decreased as a result of a
revaluation, the change is recognised in other comprehensive
income and accumulated in equity.
82 | Annington Limited Annual Report & Accounts 2019
Annington Limited Annual Report & Accounts 2019 | 83

Paperturn



Powered by


Full screen Click to read
Paperturn flip book system
Search
Overview
Download as PDF
Print
Shopping cart
Full screen
Exit full screen