267694 EdinburghIT AR 2024 WEB - Flipbook - Page 66
64 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS / CONTINUED
occurred. Timing differences are differences between the Company’s taxable profits and its results as stated in the financial
statements. Deferred taxation assets are recognised where, in the opinion of the Directors, it is more likely than not that these
amounts will be realised in future periods.
A deferred tax asset is only recognised in respect of surplus management expenses, losses on loan relationships and eligible
unrelieved foreign tax to the extent that it is probable that the Company will be able to recover them from future taxable
revenue.
I. Dividends payable
Dividends are not recognised in the financial statements unless there is an obligation to pay at the balance sheet date. Proposed
dividends are recognised in the year in which they are paid to shareholders.
J. Critical accounting estimates and judgements
No critical accounting judgements or estimates were made during the year.
K. Accounting for reserves
The share premium comprises the net proceeds received by the Company following the issue of shares, after deduction of the
nominal amount of 25 pence and any applicable issue costs. The capital redemption reserve maintains the equity share capital
of the Company and arose from the nominal value of any shares bought back and cancelled; both are non-distributable.
The capital reserve includes the investment holding gains/(losses), being the difference between cost and market value at the
balance sheet date. It also includes cumulative realised gains/(losses) and costs related to share buybacks. Capital investment
gains and losses are shown in note 9(b) and form part of the capital reserve.
The revenue reserve shows the net revenue retained after payment of any dividends. The revenue reserve and certain amounts
of the capital reserve are distributable by way of dividend.
L. Shares repurchased and held in treasury
The cost of repurchasing ordinary shares (for cancellation or to hold in treasury) including the related stamp duty and
transaction cost is charged to the capital reserve and dealt with in the Statement of Changes in Equity. Share repurchase
transactions are accounted for on a trade date basis. Where shares are cancelled (or are subsequently cancelled having
previously been held in treasury), the nominal value of those shares is transferred out of Called up share capital and into the
Capital redemption reserve. Should shares held in treasury be reissued, the sales proceeds will be treated as a realised capital
profit up to the amount of the purchase price of those shares and will be transferred to capital reserves. The excess of the sales
proceeds over the purchase price will be transferred to Share premium.
2. INCOME
This note shows the income generated from the portfolio (investment assets) of the Company and income received from
any other source.
2024
£’000
2023
£’000
Income from investments:
UK zero coupon bond income
–
148
35,857
35,807
UK special dividends
2,095
6,999
Overseas dividends
2,789
5,287
UK dividends
Overseas special dividends
Interest from money market funds
318
358
1,025
393
42,084
48,992
11
6
Other income:
Deposit interest
Total income
Special dividends of £2,251,000 were recognised in capital during the year (2023: nil).
11
6
42,095
48,998
