Tate & Lyle adopts IFRS 11 'Joint Arrangements', which company says will significantly change basis of accounting for its interests in JVs
May 29, 2014
– ACCOUNTING FOR JOINT VENTURES
With effect from 1 April 2014, Tate & Lyle adopted IFRS 11 ‘Joint Arrangements’ which will change significantly the basis of accounting for its interests in joint ventures.
Previously, the Group’s interests in joint ventures were accounted for by proportionate consolidation, whereby the Group’s share of the income and expenses, assets and liabilities and cash flows of joint ventures was combined on a line-by-line basis with those of Tate & Lyle PLC and its subsidiaries. IFRS 11 prohibits the use of proportionate consolidation and requires that joint ventures are accounted for using the equity method of accounting. Under the equity method of accounting, the Group’s share of the after tax profits and losses of the joint ventures are shown on one line of the consolidated income statement, its share of their net assets are shown on one line of the consolidated statement of financial position and the consolidated statement of cash flows reflects cash flows between the Group and the joint ventures (investments in and dividends received from joint ventures) within cash flows from investing activities.
The Group’s results announcements in respect of the year ending 31 March 2015 will include comparative amounts for the year ended 31 March 2014 restated in accordance with IFRS 11. In order to assist users in understanding the effect of this change, we publish today reconciliations showing the effect of IFRS 11 on the Group’s statutory results, financial position and cash flows for the year ended 31 March 2014 (‘FY14’) and for the six months ended 30 September 2013 (‘HY14’).
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About Tate & Lyle:
Tate & Lyle is a global provider of ingredients and solutions to the food, beverage and other industries, operating from over 30 production facilities around the world.
Tate & Lyle operates through two global business units, Speciality Food Ingredients and Bulk Ingredients, supported by the Innovation and Commercial Development group. The Group's strategy is to become the leading global provider of Speciality Food Ingredients through a disciplined focus on growth, and by driving Bulk Ingredients for sustained cash generation to fuel this growth.
Speciality Food Ingredients consists of three platforms: Texturants, which includes speciality starches and stabilisers; Sweeteners, which comprises nutritive sweeteners and our range of no-calorie sweeteners including SPLENDA® Sucralose; and our Health and Wellness portfolio which includes speciality fibres and our salt-reduction offering. Additionally, our food systems business provides a wide variety of blended ingredient solutions.
Tate & Lyle Bulk Ingredients includes bulk sweeteners, industrial starches and fermentation products (primarily acidulants). Corn co-products from both divisions are primarily sold as animal feed.
Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2013, Tate & Lyle sales totalled £3.3 billion. http://www.tateandlyle.com. SPLENDA® is a trademark of McNeil Nutritionals, LLC.