ISMA Financial Report ISMA group consolidated accounts and auditors report

Transcription

1 ISMA Financial Report 2001 ISMA group consolidated accounts and auditors report

2 ISMA - Consolidated Balance Sheet Balance Sheet as at December 31 CHF CHF Assets Current assets - Cash at bank Accounts receivable - trade Prepayments Securities Fixed assets - Freehold property Other tangible fixed assets Investments in other entities Total assets Liabilities Current liabilities - Payables and accrued liabilities Deferred income Long-term liabilities - General provision Research and development provision Total liabilities Reserves Surplus for the year ( ) Retained surplus at January Cumulative translation differences ( ) ( ) Total reserves Minority interests in CoredealMTS Limited Total liabilities and reserves

3 Consolidated Income and Expenditure Account Income and Expenditure Account for the year ended December 31 CHF CHF Income Membership fees Net income from activities - Membership services Publications and information services TRAX CoredealMTS Interest and other revenue - Losses/ gains arising from foreign exchange differences ( ) Interest and other income Realised capital gains (loss) on securities - ( ) - Gains arising from the issue/ disposal of shares in CoredealMTS Limited Total income Expenditure Expenses from activities - Membership services Publications and information services TRAX CoredealMTS IT re-engineering expenses Other expenses - Administration and other expenses Board and committees Depreciation Legal and consultancy fees Swiss taxation UK taxation Research and development provision Total expenditure continues/

4 Consolidated Income and Expenditure Account Income and Expenditure Account for the year ended December 31 CHF CHF continued from previous page/ Loss/ surplus for the year before minority interests ( ) Minority interests in CoredealMTS Limited Associate interest in CoredealMTS Limited ( ) - Loss / surplus for the year after minority interests ( ) Zurich, February 5, 2002 John L. Langton Peter C. Maier

5 Notes to the Consolidated Financial Statements 2001 Consolidated accounting principles Basis of consolidation The consolidated financial statements consolidate all companies in and outside of Switzerland. A subsidiary is a company which International Securities Market Association (ISMA) controls, directly or indirectly, with more than 50% of the voting rights. Companies in which the Association has an equity holding of between 20% and 50% (associated companies) are included using the equity method. Holdings of less than 20% are shown at purchase price less any value adjustments required. Material investments of International Securities Market Association (ISMA) at December 31, 2001, and the consolidation treatment applied are as follows: Company Share capital (local currency) Proportion of share capital held Accounting treatment ISMA (Holdings) Ltd GBP % Full consolidation International Securities GBP % Full consolidation Market Association Limited CoredealMTS Limited GBP % Equity method International Securities CHF % Full consolidation Market Association (ISMA) AG Emerging Markets Clearing Corporation No par value 13.4% Purchase price less value adjustments Method of consolidation The financial statements of subsidiaries are fully consolidated. Assets and liabilities, revenue and expenditure are incorporated in full. Capital consolidation is effected using the purchase method of accounting, whereby all identifiable assets and liabilities of the acquired company are entered at their fair value at the time of acquisition. Results of acquired companies are included in the consolidation from the date of acquisition. All intragroup transactions and relations have been eliminated in the course of the consolidation. Foreign currency translation The group reporting currency is the Swiss franc. Annual financial statements in other currencies are translated in Swiss francs, as follows: current assets, fixed assets and liabilities at the rate ruling on the balance sheet date, capital and reserves at the historic rate. All income and expenditure items and the net annual result are translated applying the average rate for the year. Any differences arising from such translations are taken straight to group reserves in the form of translation adjustments, with no impact on the results for the year.

6 Foreign currency positions in the accounts of consolidated group companies are translated as follows: foreign currency transactions at the rate on the date of the transaction; foreign currency balances at the rate ruling on the balance sheet date. The resulting differences are disclosed as gains or losses arising from foreign exchange differences in the income and expenditure statement. Key exchange rates used are as follows: Average CHF rate CHF rate at year-end GBP Accounting policies Tangible fixed assets Tangible fixed assets are carried at purchase price less depreciation. Securities Securities are maintained at the lower of nominal and market value. In principle, securities are designated as held-to-maturity investments. Provisions Provisions are established for all known and foreseen liabilities of the Association and its subsidiaries at the financial year-end. Revenue recognition Sales are recognised upon delivery of products or performance of services, net of sales taxes and after eliminating sales within the group. To the extent that payments are received in advance of service or product delivery, these are recorded as deferred income and released in line with the principle outlined above. Other information Pledged assets Securities with a book value of CHF 2 million have been pledged by International Securities Market Association in favour of third parties. Fire insurance values of fixed assets The fire insurance values of fixed assets are as follows: CHF Freehold property Other tangible fixed assets Net release of passive reserves There was no release of passive reserves reflected in the result for year 2001 or for 2000.

7 PricewaterhouseCoopers AG Stampfenbachstrasse Zürich Telephone Facsimile Report of the auditors of the Group to the General Meeting of International Securities Market Association Zurich As auditors of the Group we have audited the consolidated financial statements (Balance Sheet, Income and Expenditure Account and Notes) of International Securities Market Association for the year ended December 31, 2001, in accordance with the provisions of the law prescribed for corporations. These consolidated financial statements are the responsibility of the board of directors. Our responsibility is to express an opinion on these financial statements based on our audit. We confirm that we meet the legal requirements concerning professional qualification and independence. Our audit was conducted in accordance with auditing standards promulgated by the profession, which require that an audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement. We have examined on a test basis evidence supporting the amounts and disclosures in the financial statements. We have also assessed the accounting principles used, significant estimates made and the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements comply with the law applicable to corporations and the consolidation and valuation principles as set out in the notes. We recommend that the consolidated financial statements submitted to you be approved. PricewaterhouseCoopers AG Pascal Portmann Klaus Morscher Zurich, February 5, 2002 Enclosures - Consolidated Balance Sheet - Consolidated Income and Expenditure Account - Notes to the Consolidated Financial Statements PricewaterhouseCoopers ist weltweit in über 150 Ländern und in der Schweiz in Aarau, Basel, Bern, Chur, Freiburg, Genf, Lausanne, Lugano, Luzern, Neuenburg, Sitten, Solothurn, St. Gallen, Thun, Winterthur, Zug und Zürich vertreten.