01
accounting
policies
cont... |
viii_Foreign exchange |
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| Transactions denominated in foreign currencies are
translated into sterling at the rates ruling at the dates of transactions.
Monetary assets and liabilities denominated in foreign currencies
at the balance sheet date are translated at the rates ruling at
that date. These transaction differences are taken to the profit
and loss account. |
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| Results of overseas subsidiaries are translated
using the average exchange rate for the period. The balance sheets
of overseas subsidiaries are translated at the closing rate on
the year end date and any resulting exchange differences taken
to reserves. |
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ix_Taxation |
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Corporation tax is provided on taxable profits at the current
rate. |
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Deferred tax is provided on timing differences that have arisen
but not reversed by the balance sheet date, where the timing differences
result in an obligation to pay more tax, or a right to pay less
tax, in the future. Timing differences arise because of differences
between the treatment of certain items for accounting and taxation
purposes. |
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Deferred tax assets are recognised to the extent that it is
regarded as more likely than not that they will be recovered.
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Deferred tax is measured at the tax rates that are
expected to apply in the periods when the timing differences are
expected to reverse, based on tax rates and law enacted or substantively
enacted at the balance sheet date. Deferred tax assets and liabilities
are not discounted. |
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Where law or accounting standards require gains and losses to
be recognised in the statement of total recognised gains and losses,
the related taxation is also taken directly to the statement of
total recognised gains and losses in due course. |
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x_Leased assets |
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Assets held under finance leases are included in the balance
sheet and depreciated in accordance with the Group’s normal
accounting policy for the class of asset concerned. The present
value of future rentals is shown as a liability. The interest
element of rental obligations is charged to the profit and loss
account over the period of the lease in proportion to the balance
of capital repayments outstanding. |
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Rentals payable under operating leases are charged to the profit
and loss account on a straight-line basis over the period of the
leases. |
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xi_Pensions |
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All employees are eligible to join the iSOFT Group Personal
Pension Scheme or other Group approved defined contribution pension
schemes. The pension charge shown in the financial
statements represents the total contributions payable by the
Group for the year |
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