Financial statements Parent Company Accounting Policies continued For the 52 weeks ended 26 June 2021 Deferred income tax assets and liabilities are offset when NEW STANDARDS AND INTERPRETATIONS there is a legally enforceable right to offset current tax assets No new standards, amendments or interpretations, effective against current tax liabilities and when they relate to income for the first time for the financial period beginning on or after taxes levied by the same taxation authority on either the 28 June 2020 have had a material impact on the financial taxable entity or different taxable entities where there is an statements of the Group. intention to settle the balances on a net basis. Certain new accounting standards and interpretations DIVIDENDS have been published that are not yet effective and have Dividends are recognised as a liability in the period in which not been early adopted by the Group. These standards are they are approved such that the Company is obligated to pay not expected to have a material impact on the entity in the the dividend. current or future reporting periods and on foreseeable future transactions. FINANCIAL ASSETS Trade and other receivables Use of estimates and judgements Trade and other receivables are initially recognised at fair The presentation of the annual financial statements in value and then carried at amortised cost, net of impairment conformity with IFRS as adopted by the EU requires the provisions. Directors to make judgements, estimates and assumptions that affect the application of policies and reported amounts SHARE CAPITAL of assets and liabilities, income and expenses. The estimates Where the Company purchases its own equity share capital and associated assumptions are based on historical (treasury shares) the consideration paid, including any experience and various other factors that are believed to be directly attributable incremental costs, is deducted from reasonable under the circumstances. Actual results may differ equity attributable to the Company’s equity holders until from these estimates. the shares are cancelled or reissued. Where such shares are Estimates and underlying assumptions are reviewed on subsequently sold or reissued, any consideration received an ongoing basis. Revisions to accounting estimates are net of any directly attributable incremental transaction costs recognised in the period in which the estimate is revised and and the related income tax effects, is included in equity in any future periods affected. attributable to the Company’s equity holders. INVESTMENTS No estimates or judgements have had a material impact on the Company. Investments in subsidiary undertakings are stated at the adjusted cost of the investment. IFRS 2 requires the Parent Company to recognise an increase in the cost of its investment in a subsidiary which has issued share options in the Parent Company’s shares to its employees. 220 DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021