Last checked at 7 Oct 2016 16:36
GRAINGER PLC ("the Company")
Notification to Shareholders in accordance with FRS 101
Notice to shareholders on parent company financial statements: Adoption of Financial Reporting Standard 101 ("FRS 101"): Reduced Disclosure FrameworkThe parent company financial statements of Grainger plc ("the Company") contained in the Grainger plc Annual Report and Accounts for the year ended 30 September 2015 ("the 2015 Report") were prepared in accordance with UK Generally Accepted Accounting Practice ("UK GAAP"). The 2015 Report can be found on the Company's website at www.graingerplc.co.uk.
A new UK GAAP accounting framework introduced by the Financial Reporting Council ("FRC") becomes mandatorily effective for the financial statements of UK companies with accounting periods commencing on or after 1 January 2015. Under this new framework, the Company is required to elect to prepare its parent company financial statements on one of the bases permitted by the FRC. The consolidated financial statements of the Company's group will continue to be prepared in accordance with EU-adopted International Financial Reporting Standards ("IFRS") and are unaffected by this new accounting framework.
The Company proposes to adopt FRS 101 "Reduced Disclosure Framework" ("FRS 101") for its parent company financial statements for the year ending 30 September 2016 and to take advantage of the permitted disclosure exemptions allowed under FRS 101. Following adoption of FRS 101, the financial position of the parent company, and the related disclosures after taking the possible exemptions permitted under FRS 101, are expected to be the same as, or follow closely, those reported under previous UK GAAP. This notification will apply on an ongoing basis until such time as the Company notifies its shareholders of any change to its chosen accounting framework for the parent company financial statements.
The Company's election to adopt FRS 101 for its parent company's financial statements does not require shareholder approval. However, as stipulated in FRS 101, the Company is required to notify all shareholders of this election. Any shareholder or shareholders holding in aggregate 5% or more of the total allotted shares in the Company may serve an objection. Objections must be served in writing and delivered to the Company Secretary at Grainger plc, Citygate, St James' Boulevard, Newcastle upon Tyne, NE1 4JE by no later than 31 October 2016.
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For and on behalf of Grainger plc
Adam McGhin
Group General Counsel and Company Secretary