Introduction
Debenhams plc (“the Company”) is a public limited company incorporated and domiciled in the United Kingdom under the Companies Act 2006 (Company No. 5448421). The address of the registered office is Debenhams plc, 1 Welbeck Street, London W1G 0AA.
The principal activity of the Company is that of a holding company. The principal activities of the Group and its subsidiaries (together the “Group” or the “Debenhams Group”) is the sale of fashion clothing and accessories, cosmetics and products for use in the home. The Group trades from department stores and small store formats in the UK, the Republic of Ireland and Denmark, on the internet and has international franchise stores.
The Group prepares its Financial Statements for the financial year ending on the nearest Saturday to 31 August of a given calendar year. Consequently the year ended 3 September 2011 is a 53 week year, with the comparative year ended 28 August 2010 being a 52 week year.
The principal companies within the Group during the financial year ended 3 September 2011 are disclosed in note 34.
Basis of Preparation
The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) including International Accounting Standards (“IAS”) and International Financial Reporting Standards Interpretations Committee (“IFRS IC”) interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under accounting standards as adopted for use in the EU. The Consolidated Financial Statements for the financial year ended 3 September 2011 and 28 August 2010 have been prepared under the historical cost convention as modified by financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
The preparation of the Financial Statements, in conformity with IFRS, requires the use of estimates and assumptions that affect the reporting amounts of assets and liabilities at the date of the Financial Statements and the reported amount of revenue and expenses during the reporting period. Although these results are based on management’s best knowledge of the amounts, events or actions, actual results ultimately may differ from those estimates (see note 5).