Basic financial assets, including amounts owed by group undertakings and other debtors, and basic financial liabilities, including loan notes and other creditors, are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest rate method. Interest payable on borrowings is recognised in profit or loss over the term of the borrowing on the same basis.

Current tax is recognised on the taxable profit for the period at rates enacted or substantively enacted at the reporting date. Deferred tax is recognised on timing differences at the reporting date, and deferred tax assets are recognised only to the extent it is probable they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. No deferred tax asset has been recognised in respect of trading losses as there is insufficient certainty as to the timing of their recovery.