Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation
at the reporting date as a result of a past event, it is probable that economic benefit will be
transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership. All other leases are classified as operating leases. The rights of use and
obligations under finance leases are initially recognised as assets and liabilities at amounts equal
to the fair value of the leased assets or, if lower, the present value of the minimum lease
payments. Minimum lease payments are apportioned between the finance charge and the
reduction in the outstanding liability using the effective interest rate method. The finance charge
is allocated to each period during the lease so as to produce a constant periodic rate of interest
on the remaining balance of the liability. Leased assets are depreciated in accordance with the
company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will
be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term
and its useful life. Operating lease payments are recognised as an expense on a straight line
basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.