RWS Annual Report 2022 web - Flipbook - Page 152
Notes to the Parent Company Financial Statements
1. GENERAL INFORMATION
RWS Holdings plc is the holding company of a number
of subsidiaries which provide patent translations,
intellectual property support services, high-level technical
and commercial translations, localisation and linguistic
validation services.
2. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The principal accounting policies applied in the
preparation of these financial statements are set out
below. These policies have been consistently applied to all
the years presented, unless otherwise stated.
•
•
IAS 7, “Statement of cash flows”
•
paragraph 17 of IAS 24, “Related party disclosures” (key
management compensation)
•
the requirements in IAS 24, “Related party disclosures” to
disclose related party transactions entered into between
two or more members of the Group (providing any
subsidiary party to the transaction is wholly owned by a
member of the Group)
•
RWS Holdings plc, has given guarantees to some of its
subsidiaries incorporated in the United Kingdom, to
allow them to take exemption from requiring an audit by
virtue of s479A of the Companies Act 2006. See note 7 for
further details.
paragraphs 30 and 31 of IAS 8 “Accounting policies,
changes in accounting estimates and errors”
(requirement for the disclosure of information when an
entity has not applied a new IFRS that has been issued
but is not yet effective)
Basis of preparation
The financial statements of RWS Holdings plc have
been prepared in accordance with Financial Reporting
Standard 101, “Reduced Disclosure Framework” (FRS 101).
The financial statements have been prepared under the
historical cost convention and in accordance with the
Companies Act 2006.
The preparation of financial statements in conformity with
FRS 101 requires the use of certain critical accounting
estimates. It also requires management to exercise its
judgement in the process of applying the Company’s
accounting policies.
The following exemptions from the requirements of IFRS
have been applied in the preparation of these financial
statements, in accordance with FRS 101 (where required
these disclosures are included in the Group accounts):
•
paragraphs 45(b) and 46 to 52 of IFRS 2, “Share-based
payment” (details of the number and weighted-average
exercise prices of share options and how the fair value of
goods or services received was determined)
•
•
IFRS 7, “Financial Instruments: Disclosures”
•
paragraph 38 of IAS 1, “Presentation of financial
statements” comparative information requirements in
respect of:
paragraphs 91 to 99 of IFRS 13, “Fair value
measurement” (disclosure of valuation techniques and
inputs used for fair value measurement of assets and
liabilities)
-
•
152
Paragraph 79(a) (iv) of IAS 1
Paragraph 73(e) of IAS 16 “Property, plant and
equipment”
the following paragraphs of IAS 1, “Presentation of
financial statements”:
-
10(d), (statement of cash flows)
-
38B-D (additional comparative information)
16 (statement of compliance with all IFRS)
38A (requirement for minimum of two primary
statements, including cash flow statements)
111 (cash flow statement information); and,
134-136 (capital management disclosures)
RWS — Annual Report 2022
New accounting standards, amendment and
interpretations
There were no new standards effective during the year
that have a material impact to the preparation of these
Parent Company financial statements.
Going concern
The Directors have prepared cash flow forecasts for a
period of at least 12 months from the date of approval
of the financial statements, which indicate that, taking
account of reasonably possible downsides, the Group will
have sufficient funds to meet its liabilities as they fall due
in the period.
Consequently, the Directors are confident that the
Company will have sufficient funds to continue to meet its
liabilities as they fall due for at least 12 months from the
date of approval of the financial statements and therefore
have prepared the financial statements on a going
concern basis. Note 2 to the Group Financial statements
includes more details on the Directors' assessment of
going concern for the entity and for the Group.
Derivative financial instruments and hedging
activities
The Parent Company enters into foreign exchange
forward contracts to hedge its GBP cash outflows. The
Parent Company does not apply hedge accounting for
these forward contracts which are marked-to-market
at each reporting date with any changes in fair values
recognised in the Parent Company’s statement of
comprehensive income.
Investments in subsidiaries
Investments denominated in foreign currency are
recorded using the rate of exchange at the date of
acquisition. Investments in subsidiaries are stated at cost
less any provision for impairment in value. Investments
are reviewed annually for evidence of impairment.
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
