3.2 Working capital

Accounting policies

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period. These are classified as non-current assets. The Company's loans and receivables comprise "Other receivables", "Short-term investment" and "Cash and cash equivalents" in the balance sheet.

Other receivables

Other receivables are non-interest bearing and are recognised initially at fair value, and subsequently at amortised cost, reduced by appropriate allowances for estimated irrecoverable amounts.

Short-term investments

Short-term investments comprise treasury deposits with a maturity of greater than three months at the balance sheet date.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and short-term deposits with a maturity of three months or less at the balance sheet date.

Financial liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into.

Trade and other payables

Trade and other payables are initially recognised at fair value and subsequently at amortised cost, using the effective interest rate method.

3.2.1 Other receivables


27 November
2011
£'000
28 November
2010
£'000
Other receivables 50 174
Prepayments 6
Accrued income 214 402
Amounts due from subsidiary undertakings 137,688 60,668
137,952 61,250

No security has been granted over other receivables.

3.2.2 Short-term investment

The short-term investment relates to a £30 million treasury deposit which matured on 26 July 2011.

3.2.3 Cash and cash equivalents


27 November
2011
£'000
28 November
2010
£'000
Cash at bank and in hand 85,330 114,361

The prior period cash and cash equivalents balance does not include a £30 million treasury deposit held by the Company, which was classified as a short-term investment (see Note 3.2.2).

3.2.4 Trade and other payables


27 November
2011
£'000
28 November
2010
£'000
Trade payables 321 98
Other payables 58
Accruals 3 225
Amounts due to subsidiary undertakings 9,161
9,543 323