The accounting policies adopted are consistent with those of the annual financial statements for the year ended 30 September 2008, as described in those financial statements.

Recent accounting developments

The following standards, amendments and interpretations have been issued by the International Accounting Standards Board or by the IFRIC but have not yet been adopted. Subject to endorsement by the European Union, these will be adopted in future periods. IFRS 8 has been endorsed, and the other standards, amendments and interpretations are being considered for endorsement. The Group’s approach to these is as follows.

(a) Standards, amendments and interpretations effective in 2009

The following standards, amendments and interpretations to published standards are mandatory for accounting periods beginning on or after 1 October 2008 but are not relevant to the Group or the Company’s operations, or have no significant impact:

• IFRIC 11, “IFRS 2 – Group and treasury share transactions”.
• IFRIC 12, “Service concession arrangements”.
• IFRIC 13, “Customer loyalty programmes”.

(b) Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the Group

The following new standards, amendments to standards and interpretations have been issued, but are not effective for the financial year beginning 1 October 2008 and have not been adopted early:

• IAS 23 (amendment), “Borrowing costs”, effective for annual periods beginning on or after 1 January 2009. This amendment is not relevant to the Group.

• IFRS 2 (amendment) “Share-based payment”, effective for annual periods beginning on or after 1 January 2009. Management is assessing the impact of changes to vesting conditions and cancellations on the Group’s SAYE schemes.
• IFRS 3 (amendment), “Business combinations” and consequential amendments to IAS 27, “Consolidated and separate financial statements”, IAS 28, “Investments in associates” and IAS 31, “Interests in joint ventures”, effective prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009. Management is assessing the impact of the new requirements regarding acquisition accounting, consolidation and associates on the Group. The Group does not have any joint ventures.
• IAS 1 (amendment), “Presentation of financial statements”, effective for annual periods beginning on or after 1 January 2009. Management is in the process of developing pro forma accounts under the revised disclosure requirements of this standard.

• IAS 32 (amendment), “Financial instruments: presentation”, and consequential amendments to IAS 1, “Presentation of financial statements”, effective for annual periods beginning on or after 1 January 2009. This is not relevant to the Group, as the Group does not have any puttable instruments.

(c) Standards, amendments and interpretations to existing standards that have been adopted early by the Group

• IFRS 8, “Operating segments”, effective for annual periods beginning on or after 1 January 2009. IFRS 8 replaces IAS 14, “Segment reporting”, and requires a “management approach” under which segment information is presented on the same basis as that used for internal reporting purposes.
• IFRIC 14, “IAS 19 – the limit on a defined benefit asset, minimum funding requirements and their interaction”.