171 / 220
/
169
Notes
to the Group annual financial statements
continued
For the year ended 31 May 2017
BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
10. Accounting framework
continued
10.4 Other accounting policies continued
On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and
of borrowings and other currency instruments designated as hedges of such investments, are taken to other
comprehensive income. When a foreign operation is partially disposed of or sold, such exchange differences are
recognised in the income statement as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as the foreign entity’s
assets and liabilities and are translated at the closing rate.
Dividend tax
Dividend tax is provided for at 20% of the amount of any dividend paid, subject to certain exemptions. The dividend
tax is a tax borne by the beneficial owner of the dividend and will be withheld by either the issuer of the dividend or
by regulated intermediaries.
Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a liability in the Group and Company’s financial
statements in the period in which they are approved by the shareholders.
Distributions of non-cash assets received from subsidiary companies are recognised as a dividend at the fair value of
the non-cash assets received.