Strategic report Governance Financial statements Other information SECTION 5: OTHER NOTES NOTES TO THE GROUP FINANCIAL STATEMENTS OTHER CONTINUED 5.1 General information continued Accounting policies Operating lease payments represent rentals payable by the Group for its office properties. The Group The financial statements have been prepared on the historical cost basis, except for the revaluation leases various offices under non-cancellable operating lease agreements. The leases have varying of financial assets and liabilities at fair value through profit and loss. The principal accounting policiesterms, escalation values and renewal rights. The decline in the year is due to the adoption of IFRS 16 in adopted are set out at the start of each note to which they relate. the previous year, which has meant that the majority of leases are accounted for under that standard Accounting policies as shown in these notes have been consistently applied throughout the current and subsequently the end of short term leases. The maturity of these balances can be seen in Note 5.7. and prior financial year. In the prior annual report a table was presented showing ‘Interests in Capital commitments unconsolidated structured entities’. In both the current and prior year the Group had no such interests At the end of the reporting period, the Group had capital commitments of £0.1 million (2020: £0.1 million) and as such the note has been removed. for IT equipment. 5.2 Critical judgements and key sources ContingenciesThe Group operates in a highly regulated environment and, in the ordinary course of business, of estimation uncertainty has provided information to various authorities as part of informal and formal requests and enquiries. In addition the Group receives complaints or claims in relation to its services from time to time, The preparation of the financial statements requires management to make estimates and these may be notified to the Group or directly to third parties. There are inherent uncertainties in assumptions that affect the reported amount of revenues, expenses, assets and liabilities and the the outcome of such matters and it is not practicable to reliably estimate the financial impact, if any, disclosure of contingent liabilities. If, in the future, such estimates and assumptions, which are based on the Group’s results or net assets at the period end. on management’s best judgement at the date of preparation of the financial statements deviate from actual circumstances, the original estimates and assumptions will be modified as appropriate in the 5.4 Subsidiaries period in which the circumstances change. There are no assumptions made about the future, or any other major sources of estimation uncertainty at the end of the reporting period, that have a A list of the investments in subsidiaries included in the consolidated results of Hargreaves Lansdown significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities plc is shown in note 6.5 to the Parent Company financial statements. Also included in the Group within the next financial year. There are no critical judgments or critical estimates in relation to the Consolidated Financial Statements are ‘The Hargreaves Lansdown Employee Benefit Trust’ and preparation of these financial statements. ‘The Hargreaves Lansdown plc SIP Trust’. 5.3 Contingencies and commitments 5.5 Events after the reporting period Operating lease commitments – as lessee On 8 August 2021 the Directors proposed a final ordinary dividend payment of 26.6 pence per ordinary Year ended Year ended share and a special dividend of 12.0 pence per share, payable on 20 October 2021 to all shareholders on 30 June 2021 30 June 2020 the register at the close of business on 24 September 2021 as detailed in note 3.2. £m £m Minimum lease payments under operating lease recognised as an expense in the year – 0.1 At the end of the reporting period, the Group had outstanding commitments for future minimum lease payments under the remaining term of non-cancellable operating leases, which fall due as follows: Within one year – 0.1 Total minimum lease payments – 0.1 164 Hargreaves Lansdown Report and Financial Statements 2021