Final Results -9-

NOTES TO THE FINANCIAL STATEMENTS 
 
 
1 General information 
 
 
ACP Capital Limited ("ACP" or the "Company") and its subsidiaries (together the 
"Group"), while they were in investment mode, provided specialist integrated 
finance and asset management solutions focused on European small and 
medium-sized enterprises ("SMEs"). The Company was incorporated on 30 August 
2005 and registered in Jersey under registration number 91066. The Company's 
shares were admitted to trading on AIM on 6 January 2006. The consolidated 
financial statements for the year ended 31 December 2008 were authorised for 
issue by the Board of Directors on 26 March 2009. 
 
 
At an EGM held on 17 July 2008, the Company announced that it would seek to 
dispose of assets on an orderly basis and return the proceeds to shareholders by 
way of distributions. 
2 Basis of preparation 
 
 
These financial statements have been prepared in accordance with International 
Financial Reporting Standards, International Accounting Standards and 
Interpretations (collectively "IFRSs") issued by the International Accounting 
Standards Board ("IASB") as adopted by the European Union and with those parts 
of Companies (Jersey) Law 1991 applicable to companies preparing their financial 
statements under IFRSs. 
 
 
The Group and Company financial statements have been presented in Sterling, the 
functional currency of the Company. Some of the subsidiary entities of the Group 
use a different functional currency, being the currency in the primary economic 
environment in which the entity operates. 
 
 
They are prepared under the historical cost convention modified to include 
investments measured at fair value through profit or loss. The preparation of 
financial statements in conformity with IFRS requires management to make 
judgments, estimates and assumptions that affect the application of policies and 
reported amounts of assets and liabilities, income and expenses. The estimates 
and associated assumptions are based on the experience of the Directors and 
other factors that are believed to be reasonable under the circumstances, the 
results of which form the basis of making the judgments about carrying values of 
assets and liabilities that are not readily apparent from other sources. Actual 
results may differ from these estimates. 
 
 
The estimates and underlying assumptions are reviewed on an ongoing basis. 
Revisions to accounting estimates are recognised in the period in which the 
estimate is revised if the revision affects only that period, or in the period 
of the revision and future periods if the revision affects both current and 
future periods. 
 
 
The most significant techniques for estimation are described in the accounting 
policies or notes to the financial statements. 
 
 
Note 3 sets out a description of the significant accounting policies of the 
Group. The accounting policies are consistent with those applied in the year 
ended 31 December 2008, and amended to reflect the adoption of the new 
standards, amendments to standards or interpretations which are mandatory for 
the first time for the financial year ended 31 December 2008. 
 
 
Standards, amendments and interpretations to published standards not yet 
effective 
Certain new standards, amendments and interpretations to existing standards have 
been published that are mandatory for the Group's accounting periods beginning 
after 1 January 2009 or later periods and which the Group has decided not to 
adopt early. 
 
 
These are listed below and not expected to have a significant impact on the 
Group's financial statements. 
Amendments to IFRIC 9 and IAS 39 - Embedded Derivatives (effective for 
accounting period beginning on after 30 June 2009 - still to be endorsed) 
Amendments to IFRS 7 - Improving disclosures about Financial Instruments 
(effective for accounting period beginning on after 1 January 2009 - still to be 
endorsed) 
Amendments to IAS 1 - Presentation of Financial Statements: A Revised 
Presentation (effective for accounting period beginning on after 1 January 2009) 
IAS 27 - Consolidated and Separate Financial Statements (effective for 
accounting periods beginning on or after 1 July 2009) 
IAS 32 & IAS1 - Puttable Financial Instruments and Obligations Arising on 
Acquisition (effective for accounting periods beginning on or after 1 January 
2009) 
IFRS1 & IAS 27 - Cost of an Investment in a Subsidiary, Jointly-Controlled 
Entity or Associate (effective for accounting periods beginning on or after 1 
January 2009) 
IAS 39 - Financial Instruments: recognition and Measurement: Eligible Hedged 
Items (effective for accounting periods beginning on or after 1 July 2009) 
IFRIC 13 - Customer Loyalty Programmes (effective for accounting periods 
beginning on or after 1 July 2008) 
IFRIC 15 - Agreements for the Construction of Real Estate (effective for 
accounting periods beginning on or after 1 January 2009) 
IFRIC 16 - Hedges of a Net Investment in a Foreign Operation (effective for 
accounting periods beginning on or after 1 October 2008) 
IFRIC 17 - Distributions of Non-Cash Assets to Owners (effective for accounting 
periods beginning on or after 1 July 2009) 
IFRIC 18 - Transfer of Assets from Customers (effective for accounting periods 
beginning on or after 1 July 2009) 
Amendment to IFRS2 - Share Based payments: Vesting Conditions and Cancellations 
(effective for accounting periods beginning on or after 1 January 2009) 
IFRS 3 - Business Combinations and Complementary Amendments to IAS 27 
Consolidated and Separate Financial Statements (both effective for accounting 
periods beginning on or after 1 July 2009) 
IFRS 8 - Operating Segments (effective for accounting periods beginning on or 
after 1 January 2009) 
 
 
3 Significant accounting policies 
 
 
The accounting policies have been consistently applied across the Group entities 
for the purpose of producing these consolidated financial statements. The 
significant accounting policies applied are as follows: 
 
a)   Basis of consolidation 
The financial information in the Group's Financial Statements for the year ended 
31 December 2008 incorporates the Financial Statements of the Company and its 
subsidiaries. Subsidiaries are entities controlled by the Group. Control exists 
when the company has the power, directly or indirectly, to govern the financial 
and operating policies of an entity so as to obtain benefits from its 
activities. In assessing control, potential voting rights that are currently 
exercisable or convertible are taken into account. The financial statements of 
the subsidiaries are included in the consolidated financial statements from the 
date that the control commences until the date control ceases. 
 
 
Intra-group balances and any unrealised gains and losses arising from 
intra-group transactions are eliminated in preparing the Financial Statements of 
the Group. 
 
b)  Acquisitions 
Acquisitions are accounted for as a business combination, in which case, the 
identifiable assets, liabilities and contingent liabilities of a subsidiary or 
joint venture are measured at their estimated fair value at the date of 
acquisition. The cost of acquisition is measured as the fair value of the 
consideration given together with any liabilities incurred or assumed at the 
date of acquisition, plus costs directly attributable to the acquisition. 
 
 
The excess of the cost of acquisition over the fair value of the Group's share 
of the identifiable net assets acquired is recorded as goodwill. Where the fair 
value of identifiable assets, liabilities and contingent liabilities exceed the 
fair value of consideration paid, the excess is credited in full to the 
consolidated income statement on the acquisition date. 
 
 
Where a subsidiary is acquired in stages, the identifiable assets, liabilities 
and contingent liabilities are measured at their estimated fair value and 
compared to the cost of acquisition at each date investment in the subsidiary 
took place. If the investment has previously been carried at fair value through 
profit or loss, fair value movements recognised in prior periods are reversed 
through equity. 
 
c)  Investments measured at fair value through profit or loss 
Investments are recognised and derecognised at trade date. All listed and 
unlisted equity investments are designated as at fair value through profit or 
loss and subsequently carried in the balance sheet at fair value. 
 
 
The valuation technique used for each class of investment is as follows: 
 
 
Equity - publicly traded equity is valued at bid price at the balance sheet 
date. Non traded equity is stated at Directors' valuation having regard to 
venture capital guidelines and third party reports. 
 
 
Preference equity- valued as a percentage to par using the same percentage to 
par of indicative bids of junior debt in the company in which the preference 
equity is held. 
 
 
Syndicated loans - valued based on indicative bids from market makers. 
 
 
d)  Loans and receivables 
These assets are non-derivative financial assets with fixed or determinable 
payments that are not quoted in an active market. They are initially recognised 
at fair value plus transaction costs that are directly attributable to their 
acquisition or issue, and are subsequently carried at amortised cost using the 
effective interest rate method, less provision for impairment. 
 
 
Impairment provisions are recognised when there is objective evidence (such as 
significant financial difficulties on the part of the counterparty or default or 
significant delay in payment) that the Group will be unable to collect all of 
the amounts due under the terms receivable, the amount of such provision being 
the difference between the net carrying amount and the present value of the 
future expected cash flows associated with the impaired receivable. 
 
e)  Available-for-sale 
Non-derivative financial assets not included in the above categories are 
classified as available-for-sale and comprise principally the Group's CDOs, CLOs 
and SME loans. They are carried at fair value and valued based on an average of