Last checked at 16 Dec 2015 13:26
Morgan Advanced Materials plc
16 December 2015
Notification to Shareholders in accordance with FRS 101
On 14 December 2015, Morgan Advanced Materials plc posted a letter to shareholders, the full text of which is set out below.
Notification to shareholders on parent company financial statements: Adoption of Financial Reporting Standard (FRS) 101 - Reduced Disclosure Framework
The financial statements for the year ended 31 December 2014 of Morgan Advanced Materials plc (the "Company"), the parent company of the Morgan Advanced Materials Group, as set out on pages 145 to 154 of the 2014 Annual Report, 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) becomes mandatorily effective for the financial statements of UK companies in 2015. Under this new framework, the Company is required to prepare its parent company financial statements for its financial year commencing 1 January 2015 on one of the new bases permitted by the FRC.
The Company therefore proposes to adopt FRS 101 "Reduced Disclosure Framework" and to take advantage of the permitted election to the disclosure exemptions allowed under FRS 101. 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 does not require shareholder approval. However, due to the election to take the possible disclosure exemptions permitted under FRS 101, the Company is required to notify all shareholders of this election and any shareholder or shareholders holding in aggregate 5 per cent. or more of the total allotted shares in the Company may object. Objections must be served in writing and delivered to the Company Secretary at the Company's registered office (Quadrant, 55-57 High Street, Windsor, Berkshire, SL4 1LP) not later than 18 January 2016.
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 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.
Contact: Paul Boulton, Company Secretary
Tel: 01753 837 000