Recognition of gain on dividend in specie increases profit by 20.2% French retailer Casino, Guichard-Perrachon distributes shares in a subsidiary without losing control and recognises a €139 million gain in the income statement that increases pre-tax profit by 20.2%, noting that impending revisions to IFRS will not permit the current treatment.
Gap emerges in IFRS over accounting treatment of new French tax regime French retailer Casino, Guichard-Perrachon discloses that it intends to account for elements of a new tax based on value added under IAS 12 “Income taxes” with effects on the income statement and deferred tax, as guidance by the French Accounting Standards Authority permits varying treatments.
Discontinued operation contributes 58% of loss for year UK travel business TUI Travel classifies as discontinued in the current year a business bought exclusively with a view to resale last year, whose trading and impairment losses contribute 58% of its total loss for the year.
Corporate reporting takes further steps online UK travel business TUI Travel incorporates video content into the online version of its annual report by reference, whilst the auditor’s report cites a webpage on audit scope following amendment to the UK version of an International Auditing Standard.
Costs expensed following acquisition reduce profit by 63% UK asset manager Aberdeen Asset Management recognises migration and transitional costs that reduce its pre-tax profit by 63%, but falls short of IFRS by not disclosing the nature of goodwill acquired, as a report criticises the level of disclosure on material acquisitions in the UK.
Board risk procedures reassessed UK asset manager Aberdeen Asset Management discloses that it intends to set up a dedicated board committee to review and monitor all aspects of risk. This coincides with a recommendation to this effect in the Walker report for major financial institutions.
Intra-year timing of inventory write-down emphasised in annual report
UK housebuilder Barratt Developments recognises £500 million impairments of inventory, but stresses in its annual report that they belong in the main to the first half of the year and discloses some impairment reversals in the second half of the year.
Comparative operating cash flows reduced for foreign currency movements
UK information technology company Micro Focus International restates its cash flow statement, reducing comparative cash flow from operations by 5.4% in respect of operating foreign exchange movements, reporting the revised figure prominently in management commentary without explaining the change.
Equity reduced 6% by revised treatment of loyalty programme French airline Air France-KLM restates its accounts on early adoption of IFRIC 13 "Customer loyalty programmes", reducing comparative equity by 6% and increasing deferred revenue on ticket sales by 41.1%.
Increased disclosure as regulators act on rating agencies French airline Air France-KLM publishes a policy on counterparty risk management that includes information from a credit rating agency, as European regulators consider action to improve agencies' performance.
Counting house rendered unable to count its own costs Belgian insurer Fortis recognises an overall €27.4 billion loss on discontinued banking and insurance operations leading to a loss for the year but, contrary to IFRS, does not analyse this into result prior to disposal and gain or loss on disposal and gives the wrong valuation date for assets and liabilities disposed of.
Belgian imaging equipment maker Agfa-Gevaert recognises €119 million impairment of goodwill and intangible assets, leading to a loss for the year, but does not enlarge on the events or circumstances that have led to the impairment.
Possibility of winding up draws comment from auditors The auditors of Guernsey-based investment company MW TOPS add to their unqualified audit report a matter of emphasis paragraph addressing a shareholders’ vote on winding up the company.
Gain on part disposal to minority interest recognised in income
Finnish mobile phone maker Nokia has contributed one of its businesses to a new subsidiary in which it has a 50% interest and recognises €1.88 billion gain in the income statement, representing 22.7% of pre-tax profit.