primarily for presentation purposes to promote the Maisons and
their history. They are not intended for sale.
less any permanent impairment in value.
Net realisable value is the estimated selling price in the ordinary
course of business, less applicable variable selling expenses. Cost is
determined using either a weighted average or specific identification
basis depending on the nature of the inventory. The cost of finished
goods and work in progress comprises raw materials, direct labour,
related production overheads and, where applicable, duties and
taxes. It excludes borrowing costs.
subsequently measured at amortised cost using the effective interest
method, less provision for impairment. A provision for impairment
of trade receivables is established when there is objective evidence
that the Group will not be able to collect all amounts due according
to the original terms of the receivables. The amount of the provision
is the difference between the asset's carrying amount and the present
value of estimated future cash flows, discounted at the effective
interest rate. The movement of the provision is recognised in the
income statement.
at call with banks, other short-term highly liquid investments with
original maturities of three months or less and bank overdrafts.
Shares issued by the Company are indivisibly twinned with
participation certificates issued by its wholly-owned subsidiary,
Richemont SA, Luxembourg, to form Richemont units and are
classified as share capital and participation reserves attributable
to unitholders, respectively.
All consideration paid by the Group in the acquisition of treasury
units and received by the Group on the disposal of treasury units
is recognised directly in unitholders' equity. The cost of treasury
units held at each balance sheet date is deducted from unitholders'
equity. Gains or losses arising on the disposal of treasury units are
recognised within retained earnings directly in unitholders' equity.
costs incurred. Borrowings are subsequently stated at amortised
cost; any difference between the proceeds (net of transaction costs)
and the redemption value is recognised in the income statement over
the period of the borrowings using the effective interest method.
an unconditional right to defer settlement of the liability for at least
twelve months after the balance sheet date.
expenses to which they relate. Current taxes include capital taxes of
some jurisdictions.
temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial
statements. Deferred income tax is not accounted for if it arises
from initial recognition of an asset or liability in a transaction,
other than a business combination, that at the time of the
transaction affects neither accounting nor taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that
have been enacted or substantially enacted by the balance sheet date
and are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.
probable that future taxable profit will be available against which
the temporary differences and the carryforward of unused tax losses
can be utilised.
on investments in subsidiaries, joint ventures and associates,
except where the Group controls the timing of the reversal of
the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
The Group operates a number of defined benefit and defined
contribution post-employment benefit plans throughout the world.
The plans are generally funded through payments to trustee-
administered funds by both employees and relevant Group
companies taking into account periodic actuarial calculations.
A defined benefit plan is a pension plan that defines an amount
of pension benefit that an employee will receive post-employment,
usually dependent on one or more factors such as age, years of
service and compensation.
benefit plans is the present value of the defined benefit obligations
at the balance sheet date less the fair values of plan assets, together
with adjustments for unrecognised actuarial gains or losses and past
service costs. The defined benefit obligations are calculated on a
regular cyclical basis by independent actuaries using the projected
unit credit method. The present value of the defined benefit
obligation is determined by discounting the estimated future cash
outflows using the yields available at balance sheet dates on high-
quality corporate bonds that are denominated in the currency in
which the benefits will be paid, and that have terms to maturity
consistent with the terms of the related pension liability.