2 Feb 2016 09:59
Interserve Plc
(the "Company")
Notification to Shareholders of Adoption of Financial Reporting Standard (FRS) 101
On 1 February 2016, the Company sent a letter to shareholders, the full text of which is set out below.
"Notification to Shareholders of Adoption of Financial Reporting Standard (FRS) 101
The parent company financial statements for Interserve Plc (the Company), set out on pages 153 to 160 of the Annual Report and Accounts 2014, were prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP).
A new UK GAAP accounting framework introduced by the Financial Reporting Council (FRC) became 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 Board considers that it is in the best interests of the Group for the Company to adopt FRS 101 Reduced Disclosure Framework for its parent company financial statements for the year ended 31 December 2015, which will be included in the Company's Annual Report and Accounts 2015. As a result of taking the possible disclosure exemptions permitted under FRS 101, disclosures are expected to be the same as, or follow closely, those reported under current UK GAAP.
The Company's decision to adopt FRS 101 was stated on page 22 (note 2) of the Half-Year Report 2015. Although the decision does not require formal shareholder approval, the Company is required to notify all shareholders and any shareholder or shareholders holding in aggregate 5% or more of the total allotted shares in the Company may object. Please note that if you do not have any objections to this proposal, you do not need to take any further action. Objections must be served on the Company in writing and delivered to the Company Secretary at the Company's registered office (Interserve House, Ruscombe Park, Twyford, Reading, Berkshire RG10 9JU) not later than 22 February 2016.
This notification will apply on an ongoing basis until such time as the Company notifies its shareholders of any change to its accounting framework for the parent company financial statements.
The consolidated financial statements of the Group will continue to be prepared in accordance with EU-adopted International Financial Accounting Standards (IFRS) and are unaffected by this new accounting framework."
In accordance with Listing Rule 9.6.1, a copy of the notification sent to shareholders has been submitted to the National Storage Mechanism and will shortly be available at www.hemscott.com/nsm.do.
This announcement is made pursuant to Listing Rule 9.6.3.
Trevor Bradbury
Company Secretary
2 February 2016