F. Stocks
Stocks which primarily comprise goods held for resale are stated at the lower of cost and net realisable value. Cost of stock is determined using the retail inventory method which approximates to a first-in, first-out basis.

G. Deferred taxation
Deferred taxation is accounted for under the liability method in respect of timing differences between profit as computed for taxation purposes and profit as stated in the financial statements to the extent that a liability or asset is expected to be payable or receivable in the foreseeable future.

No deferred taxation is provided in respect of potential withholding tax which could arise on the remittance of retained overseas earnings and no deferred taxation asset is recognised for tax losses. Deferred taxation is provided in relation to the revaluation of properties only where a liability is expected to arise on a property disposal in the foreseeable future.

H. Sales
Sales consist of the gross value of goods sold to outside customers. This does not include sales generated by associates.

I. Operating leases
Operating lease rentals are charged to the consolidated profit and loss account as incurred.

J. Pension costs
The Group operates a number of defined benefit and defined contribution schemes throughout the world, the assets of which are held in trustee administered funds.

The pension costs relating to the defined benefit schemes are assessed in accordance with the advice of independent qualified actuaries using the attained age normal method. Surpluses or deficits arising from past service costs, experience adjustments and the effects of changes in actuarial assumptions are amortised as an even%age of pensionable payroll over the expected remaining working lives of the participating employees.

The Group's total contributions relating to the defined contribution schemes are charged to the consolidated profit and loss account in the year to which they relate.

K. Derivative financial instruments
The Group only enters into derivative financial instruments in order to hedge underlying exposures. Where these relate to interest rate movements, interest payable and receivable under such instruments is accrued and recorded as an adjustment to the interest income or expense related to the underlying exposure. Premiums paid or received on options are included in debtors or creditors and amortised to the profit and loss account over the life of the agreements. Where derivative financial instruments are used to hedge future commitments or transactions in foreign currencies, the unrealised exchange differences are deferred against the matching losses and gains on the specific transactions.