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Financial Statements

(b) Prior year adjustment

Accounting basis

There is a prior year adjustment relating to the implementation of FRS 21 'Events after the balance sheet date'. In accordance with FRS 21, if a final equity dividend is declared after the balance sheet date but before the financial statements are approved by the shareholders, the dividend is not recognised as a liability at the balance sheet date. The adoption of FRS 21 has resulted in an increase in shareholders' funds of £57m at 1 April 2005 due to the write back of the accrued dividend payable at 31 March 2005.