Inappropriate recognition of goodwill UK financial broking company ICAP inappropriately increases goodwill by £12 million corresponding to deferred tax liabilities on revaluing its previous interest in a company that it acquired in full this year.
Loss from discontinued operations reduces profit by approximately 30% UK financial broking company ICAP reports a £48 million loss from its discontinued European and Asia Pacific cash equities business which reduces profit for the year by some 30%.
Impairments reduce profit by 5.8% UK metal products company Johnson Matthey records £14 million impairments, most of which relate to a US fine chemicals facility, that reduce pre-tax profit by 5.8%.
Adoption of an amended IAS leads to marginal reduction in prior year equity French luxury goods company Hermès International adopts a revised IAS which clarifies the timing of recognising as expenses expenditures including advertising and promotional costs, that has minor impact.
No explanation for reversal of change in hedging strategy Luxembourg satellite broadcasting company SES reverses a prior year change in its hedging strategy and publishes a sensitivity analysis for changes in the US dollar exchange rate against the nominal amount of its net investment in the USA, but does not explain its reason for changing its hedging strategy.
Bargain purchase not such a bargain after all UK bank Lloyds Banking Group recognises an £11.2 billion gain on negative goodwill on acquisition of former rival HBOS, but the gain is more than offset by asset impairments, some of which relate to assets in the HBOS portfolio.
Large restatement of liquidity disclosures lacks explanation Swedish bank Swedbank changes the maturities of SEK1.3 trillion comparative loans to the public, leading to a more than fourfold increase in comparative financial assets with maturities over ten years, but offers no explanation whilst misleadingly describing the carrying amounts of financial liabilities as “undiscounted cash flows”.
Impairments heightened by write-down of goodwill Spanish Bank Banco Bilbao Vizcaya Argentaria recognises €1.1 billion impairment of goodwill in businesses in the USA that reduces pre-tax profit by 16%, adding that reasonably possible changes to key assumptions may lead to further charges in the future.
Disclosures on contracts with resale and repurchase commitments revised and extended Spanish bank Banco Bilbao Vizcaya Argentaria restates upwards by 2.3% the comparative amount of financial instruments purchased with resale commitments, telling us that it now includes contracts with the Bank of Spain.
Management compensation disclosures in disarray Portuguese motorway concession-holder Brisa – Auto Estradas de Portugal gives no explanation for restatements of its disclosures of directors’ pay and publishes mutually inconsistent figures for the current year in its annual report.
Aggregation criteria applied to disclosure of other comprehensive income and tax effects Danish healthcare company Novo Nordisk applies aggregation to the components and tax effects of other comprehensive income that, on the face of it, conflicts with IFRS but tells us that this is on the grounds of materiality.
No information about whether an associate has been tested for impairment Dutch recruitment company Randstad does not indicate whether an associate carried at €16.3 million has been tested for impairment in the light of its fair value being €8.6 million below the carrying amount.