RWS Annual Report 2022 web - Flipbook - Page 139
Included within Other Provisions are the following:
£1.6m related to related to long term employment benefits in certain countries the Group operates in. This amount includes £1.1m
for TFR severance amounts required under article 2120 of the Italian Civil Code. This provision has been valued in accordance with
the requirements of IAS19 as it represents long term benefits payable to employees of the Group’s Italian subsidiary. The timing of
the payment us uncertain at the reporting date.
£0.7m related to future severance as part of the transformation programmes currently being undertaken by the Group to integrate
acquired businesses in accordance with the criteria defined in IAS37. This is expected to be settled in the next 12 months.
£0.5m related to legal and other cost that the Group expects to incur over an extended period, in respect of past events for which a
provision has been recorded, none of which are individually material.
20. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
Categories of financial instruments
All financial assets and liabilities, other than derivatives and contingent consideration, are held at amortised cost (“AC”).
All derivatives are classified as fair value through profit and loss (“FVTPL”), other than derivatives designated in a cash
flow hedging relationship.
FVOCI
2022
£m
FVTPL
2021
£m
2022
£m
AC
2021
£m
2022
£m
2021
£m
178.0
Financial Assets
Trade and other receivables
-
-
-
-
207.4
Cash and cash equivalents
-
-
-
-
101.2
92.5
-
-
-
-
308.6
270.5
-
-
-
-
29.3
47.2
Financial Liabilities
Loans
Trade and other payables
-
-
-
-
112.1
105.9
Lease liabilities
-
-
-
-
46.7
51.5
0.6
0.7
-
-
-
-
0.6
0.7
-
-
188.1
204.6
Foreign exchange derivatives
The Group’s foreign exchange derivatives are fair valued using readily available market information so therefore are
Level 2 of the fair value hierarchy. The fair value of contingent consideration is determined through discounting the
expected future cashflows based on management’s assessment of expected performance against specific terms of the
sale and purchase agreement; these are Level 3 of the fair value hierarchy. There have been no transfers between levels
of the fair value hierarchy.
The carrying amount of the Group’s trade and other receivables and accrued income, trade and other payables and
cash and cash equivalents are considered to be a reasonable approximation of their fair value. The fair value of the
Group’s loan at 30 September 2022 is £32.2m (2021: £49.2m), this is as per Level 2 of the fair value hierarchy.
Financial risk management objectives and policies
The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and,
whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes
that ensure the effective implementation of the objectives and policies to the Group’s CFO.
The overall objective of the Board is to set policies that seek to reduce risk, as far as possible, without unduly affecting
the Group’s competitiveness and flexibility. Group borrowings have a number of financial covenants which are tested
bi-annually.
The principal financial risks to which the Group is exposed are those of liquidity, interest rate, credit, foreign currency
and capital. Each of these is managed as set out below.
NOTES TO THE CONSOLIDATED STATEMENTS
RWS — Annual Report 2022
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