Schroders plc notes to the accounts
for the year ended 31 December 2007
42. Significant accounting policies
The separate financial statements of the Company are presented as required by the Companies Act 1985. As permitted by that Act, the separate financial statements have been prepared in accordance with International Financial Reporting Standards which comprise standards and interpretations approved by either the International Accounting Standards Board or the International Financial Reporting Interpretations Committee or their predecessors, which had been approved by the European Commission as at 31 December 2007.
The financial statements have been prepared on the historical cost basis except for the measurement at fair value of financial assets and liabilities that are held at fair value through profit or loss. This valuation is in accordance with IAS 39 Financial Instruments: Recognition and Measurement. The Company has taken advantage of the exemption in section 230 of the Act not to present its own income statement. The principal accounting policies adopted are the same as those set out in note 1 ‘Summary of accounting policies' except as noted below.
Investments in subsidiaries
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment.