Wolseley Annual Report 2009
Notes to the company financial statements
Year ended 31 July 2009
18. Accounting standards and interpretations that are not yet effective
Certain new standards, amendments to and interpretations of existing standards have been published that are mandatory for the Company’s accounting periods beginning on or after 1 August 2009 or later periods, but which the Company has not early adopted. The new standards which are expected to be relevant to the Company’s operations are as follows:
Amendment to FRS 20 Share-based Payment (effective from 1 August 2009)
This amendment clarifies that vesting conditions are service conditions and performance conditions only. Other features of a share-based payment are not vesting conditions. It also specifies that all cancellations, whether by the entity or by other parties, should receive the same accounting treatment. Management is currently assessing the impact of this amendment on the Company’s future financial statements.
Amendment to FRS 20 Share-based Payment (effective from 1 August 2010)
The amendment clarifies both the scope of the standard and the accounting for group cash-settled share-based payment transactions in the separate or individual financial statements of the entity receiving the goods or services when that entity has no obligation to settle the share-based payments transaction. Management is currently assessing the impact of this amendment on the Company’s future financial statements.
Amendment to FRS 26 Financial Instruments: Recognition and Measurement (effective from 1 August 2009)
The amendment clarifies how the existing principles underlying hedge accounting should be applied in two particular situations, namely the designation of a one-sided risk in a hedged item and inflation in a financial hedged item. Management is currently assessing the impact of this amendment on the Company’s future financial statements.
Amendment to FRS 29 Improving Disclosures about Financial Instruments (effective from 1 August 2009)
The amendments require enhanced disclosures about fair value measurements and liquidity risk and incorporate credit risk disclosures for loans and receivables. Management is currently assessing the impact of this amendment on the Company’s future financial statements.