RWS AR 23 Final Single pages - Flipbook - Page 156
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.
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2. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The principal accounting policies applied in the
preparation of these 昀椀nancial statements are set out
below. These policies have been consistently applied to all
the years presented, unless otherwise stated.
Basis of preparation
The 昀椀nancial statements of RWS Holdings plc have
been prepared in accordance with Financial Reporting
Standard 101, 'Reduced Disclosure Framework' (FRS 101).
The 昀椀nancial statements have been prepared under the
historical cost convention and in accordance with the
Companies Act 2006.
The preparation of 昀椀nancial 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 昀椀nancial
statements, in accordance with FRS 101 (where required
these disclosures are included in the Group accounts):
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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.'
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).
Paragraph 38 of IAS 1, 'Presentation of 昀椀nancial
statements' comparative information requirements in
respect of:
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Paragraph 73(e) of IAS 16 “Property, plant and
equipment”
The following paragraphs of IAS 1, 'Presentation of
昀椀nancial statements':
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Paragraph 79(a) (iv) of IAS 1
10(d), (statement of cash 昀氀ows)
16 (statement of compliance with all IFRS)
38A (requirement for minimum of two primary
statements, including cash 昀氀ow statements)
38B-D (additional comparative information)
111 (cash 昀氀ow statement information); and,
134-136 (capital management disclosures)
IAS 7, 'Statement of cash 昀氀ows.'
RWS Holdings plc — Annual Report 2023
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 e昀昀ective).
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).
New accounting standards, amendment and
interpretations
There were no new standards e昀昀ective during the year that
have a material impact to the preparation of these Parent
Company 昀椀nancial statements.
Going concern
The Directors have prepared cash 昀氀ow forecasts for the
18 month period ending 31 March 2025, which indicate
that, taking account of reasonably possible downsides, the
Group will have su昀케cient funds to meet its liabilities as they
fall due in the period.
Consequently, the Directors are con昀椀dent that the Company
will have su昀케cient funds to continue to meet its liabilities as
they fall due over the period to 31 March 2025 and therefore
have prepared the 昀椀nancial 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 昀椀nancial instruments and hedging
activities
The Parent Company enters into foreign exchange forward
contracts to hedge its GBP cash out昀氀ows. 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.
An impairment loss is recognised for the amount by which
the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s
fair value less costs of disposal and its value in use, where
value in use is calculated as the present value of the future
cash 昀氀ows expected to be derived from the asset. For the
purpose of assessing impairment, assets are grouped at
the lowest levels for which there are separately identi昀椀able
income streams (CGUs).
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
