According to the report, the change was made because of the impact of the restructuring and impairment charges, profits on the sale of a business, and charges in the fair value of derivative financial instruments. The nature of the business suggests that the Discounted Cash Flow Model is the best model to be used in determining target prices.Premier Foods PLC uses Discounted Cash Flow as the model for computing target prices. Basically, all forecasted values provided by the firm emanate from the aforementioned model. In 2005, the actual EPS of the company is valued at 34. This is further divided into continuing and discontinuing EPS. The former accumulated an EPS of 15 and the latter contributed 19 earnings for share. The figures, however, were changed because of IFRS rules. The EPS of the company was reduced to 33.7 with the continuing and discontinuing registering 14.9 and 18.8 EPS respectively. Based on the annual report (2005) the revisions in the IFRS have minimal impact on the revenues of the company. This is reflected in the unsubstantial reduction of the EPS after adopting IRFS regulations. The inclusion of IFRS will result in model changes and the Discounted Cash Flow Model appears to be a logical scheme.Reckitt Benckiser employs the Discounted Cash Flow as its model in ascertaining the price targets of the company. This is presented in the Annual Report (2005) of the firm that computed for specific items with relevant values. Initially, the EPS in 2005 was valued at 92. This means that each ordinary share will earn such amount. It has to be noted that the company has adopted the IFRS rules. Subsequently, the EPS of the company was reduced to 90. Several changes were observed in the manner in which non-operating activities were reported. The decrease was made since most non-operating activities were excluded from the computation of the items needed to value the EPS of the company.