4.
Foreign Currencies
Foreign currency transactions in Group companies
are accounted for at the exchange rates prevailing
at the date of the transactions: gains and
losses resulting from the settlement of such
transactions and from the translation of monetary
assets and liabilities denominated in foreign
currencies, are recognised in the income statement.
Such balances are translated at year-end exchange
rates unless hedged by forward foreign exchange
contracts, in which case the rates specified
in such forward contracts are used. Where
such gains and losses are incurred as part
of operating activities, they are included
in operating costs. Where they arise on foreign
currency loans incurred to acquire fixed assets,
they are capitalised as part of the cost of
fixed assets to the extent that they are regarded
as an adjustment to interest costs.
5.
Investments
Fixed asset investments are shown at cost
and provision is only made where, in the opinion
of the Directors, there is a permanent diminution
in value. Where there has been a permanent
diminution in the value of an investment,
it is recognised as an expense in the period
in which the diminution is identified.
On
disposal of an investment, the difference
between the net disposal proceeds and the
carrying amount is charged or credited to
the income statement.
6.
Property, Plant & Equipment
Property, plant & equipment is carried at
cost less accumulated depreciation, less a
provision for any permanent diminution in
value.
Cost
includes all costs directly attributable to
bringing an asset to working condition for
its intended use.
Cost
in the case of the network comprises all expenditure
up to and including the cabling within customers’
premises, undersea cables, contractors’ charges
and payments on account, materials, customs
duty and borrowing costs.
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