UDG Healthcare plc – Annual report – 30 September 2017
Industry: healthcare
- Significant Accounting Policies (extract)
Change in Presentation Currency
The Group is presenting its results in US Dollars for the first time having previously reported in Euro. This change should help to provide a clearer understanding of the Group’s financial performance as half of the Group’s profits are currently generated in US Dollars, the Group’s US based businesses are demonstrating the greatest growth opportunities and future corporate development activity is likely to be US focused.
In order to satisfy the requirements of IAS 21 with respect to a change in presentation currency, the statutory financial information as previously reported in the Group’s Annual Reports have been restated from Euro into US Dollars using the procedures outlined below:
- Assets and liabilities were translated to US Dollars at the closing rates of exchange at each respective balance sheet date.
- Share capital, share premium and other reserves were translated at the historic rates prevailing at the dates of transactions.
- Income and expenses were translated to US Dollars at an average rate at each of the respective reporting years. This has been deemed to be a reasonable approximation.
- Differences resulting from the retranslation were taken to reserves.
- All exchange rates used were extracted from the Group’s underlying financial records.
Please see Note 32 for further information on the procedures used to restate comparative information and the impact on the prior year results, closing balance sheet and the numerator for earnings per share as originally reported.
A change in presentation currency represents a change in accounting policy which is accounted for retrospectively.
- Change in Presentation Currency
Following the disposal of the United Drug Supply Chain and MASTA businesses in April 2016, the geographic profile of the Group’s businesses has changed considerably and the vast majority of the Group’s profits are now generated in currencies other than euro. Over half of the Group’s profits are currently generated in US dollars, the Group’s US based businesses are demonstrating the greatest growth opportunities and future corporate development activity is likely to be US focused. Consequently, on 4 August 2016 the Group announced that from 1 October 2016, the financial results would be presented in US dollars. The change in presentation currency has been applied retrospectively.
In re-presenting the Group Financial Statements for the year ended 30 September 2016, the reported information was converted to US dollars from euro using the following procedures:
- Assets and liabilities were translated to US dollars at the closing rates of exchange at each respective balance sheet date (30 September 2016: $1:€0.8960; 30 September 2015: $1:€0.8926).
- Share capital, share premium and other reserves were translated at the historic rates prevailing at the dates of transactions.
- Income and expenses were translated to US dollars at an average rate at each of the respective reporting periods. This has been deemed to be a reasonable approximation (30 September 2016: $1:€0.9002; 30 September 2015: $1:€0.8709).
- Differences resulting from the retranslation were taken to reserves.
To assist shareholders during this change, the impact on the prior period results, closing balance sheet and the numerator for earnings per share as originally reported is set out below:
Group Balance Sheet
as at 30 September 2017
Accounts examples 