IAS 2 'Inventories'

Drax Group plc Period End 31 December 2010

Submitted by YWang on Wed, 2011-08-24 09:16
Drax Group plc Annual Report 2010
CR Monitor Issue: 
2011/0814
Company covered: 
Drax Group plc
Period End: 
31 December 2010
Report issued on 24 August 2011 did not identify any changes with significant impacts on the financial statements but covered the following practice issues:
Change
Separate income statement line introduced for various expenses incurred by retail business.
Change
Renewables Obligation Certificates previously included in inventories now presented in a separate balance sheet line as intangible assets held for sale.
Change
Biomass disclosed separately in inventories following an increase in use.
Change
Introduction of an underlying earnings per share measure which adjusts profit by movements on derivatives.
Change
Disclosure of movements in the allowance account for impairments against receivables whilst changing from carrying amount to gross value in a maturity analysis of financial liabilities.
Change
Change from fair value less costs to sell to value in use when determining the recovery amount of a cash-generating unit containing goodwill.

ASML Holding NV Period End 31 December 2010

Submitted by Alisdair on Wed, 2011-04-13 09:47
ASML Holding NV Annual Report 2010
Undue reliance on US GAAP’s concept of control widens scope of consolidation
Dutch semiconductor manufacturer ASML consolidates a special purpose entity (SPE) that it controls, following changes to US GAAP which it uses to interpret the concept of control in SIC 12 “Consolidation – special purpose entities”, although there is relevant guidance in SIC 12.
Cash measured at fair value is reclassified to the highest category
Dutch semiconductor manufacturer ASML reclassifies money market funds to Level 1 from Level 2 of the fair value hierarchy of IFRS 7 “Financial instruments: disclosures”, but discloses elsewhere that it classifies them as loans and receivables.

British Broadcasting Corporation Period End 31 March 2010

Submitted by Alisdair on Mon, 2011-02-28 08:03
British Broadcasting Corporation Annual Report 2010
UK broadcaster’s move to IFRS increases lease recognition
UK public service broadcaster the British Broadcasting Corporation (the BBC) adopts IFRS for its 2010 annual report, leading to a reclassification of some operating leases as finance leases with consequent £161 million decrease in closing equity.
Slimmed down early retirement obligations give rise to one-off gain
UK public service broadcaster the British Broadcasting Corporation (the BBC) reduces its pension scheme obligations to staff and recognises a consequent £334 million one-off past service gain in its income statement that represents 65.2% of the corporation’s surplus before taxation for the year.
Disclosure of off-balance sheet arrangements follows new Companies Act requirement
UK public service broadcaster the British Broadcasting Corporation (the BBC) interprets a Companies Act 2006 amendment incorporating European legislation to require disclosure of £3.4 billion fixed payments due under outsourcing and similar arrangements, but does not include variable payments.

Wolseley plc Period End 31 July 2010

Submitted by Alisdair on Mon, 2010-11-22 10:07
Wolseley plc Annual Report 2010
Inventory expensed corrected to include deliveries between third parties
UK building materials supplier Wolseley has changed its accounting policy to include £901 million arising from deliveries between its suppliers and customers in inventory expensed, increasing the comparative total by 9.5%, with no effect on cost of sales or profit.
Associate impaired below net asset value
UK building materials supplier Wolseley writes off the £41 million net asset value of an interest in an associate as it considers the amount may be irrecoverable, reducing profit before tax by 14%.

Micro Focus International plc Period End 30 April 2010

Submitted by Company Reporting on Tue, 2010-09-21 16:12
Micro Focus International plc Annual Report 2010
Prior year restatement highlights an error of disclosure of cost of inventories as an expense
Restatement by UK information technology company Micro Focus International highlights a prior period error in that the US$64,000 difference in the opening and closing balances of inventories was disclosed as an expense.

Safran SA Period End 31 December 2009

Submitted by Company Reporting on Thu, 2010-07-08 12:35
Safran SA Annual Report 2009
Put option recognised as financial liability at lowest Level of fair value hierarchy
French engineering company Safran recognises as a financial liability a €125 million put option granted to the holders of a 19% minority interest, increasing total goodwill by 3.8% in a policy that will no longer be permitted under IFRS, and discloses that it is measured at Level 3 of the fair value hierarchy.

Kingfisher plc Period End 30 January 2010

Submitted by Company Reporting on Mon, 2010-06-28 08:31
Kingfisher plc Annual Report 2010
£148 million tax receipt not recognised as income
UK retailer Kingfisher reports a £148 million tax receipt after winning an appeal against a payment to French tax authorities in 2004 but, because of a counter-appeal, does not record it as income.

Banco de Sabadell SA Period End 31 December 2009

Submitted by Company Reporting on Wed, 2010-04-21 08:59
Banco de Sabadell SA Annual Report 2009
Gains on preference share buy-backs and sale and leaseback transactions boost profit
Spanish bank Banco de Sabadell buys back part of its preference shares issued in 2006 and enters into sale and leaseback transactions, with €164 million gains arising that represent some 29% of pre-tax profit.
Issue of mandatorily convertible bonds increases equity by more than 10%
Spanish bank Banco de Sabadell classifies €500 million mandatorily convertible bonds as equity which increases by more than 10% but its disclosures to support this classification lack clarity.