Auditors' reports

Pearson plc Period End 31 December 2010

Submitted by Company Reporting on Wed, 2011-10-19 11:59

CR Monitor Issue:

2011/1007

Company covered:

Pearson plc

Period End:

31 December 2010

Report issued on 19 October 2011 did not identify any changes with significant impacts on the financial statements but covered the following practice issues:

Actuarial gain recognised in other comprehensive income following change in pensions inflation index.

Non-controlling interest measured initially at proportionate share of net assets.

Business classified as discontinued operations with consequent change in segmentation.

Trade creditors included in maturity analysis of cash flows associated with financial liabilities, following IFRS.

Information on reduction in UK tax rate disclosed.

Transaction with non-controlling interest included in financing activities.

BP plc Period End 31 December 2010

Submitted by YWang on Tue, 2011-05-10 07:01

CR Monitor Issue:

2011/0508

Company covered:

BP plc

Period End:

31 December 2010

Report issued on 10 May 2011 covered the following practice issues:

Emphasis of matter paragraph identifies significant uncertainty over provisions and contingencies arising from the Gulf of Mexico oil leak.

Separate note published for disclosing the effects of the oil leak.

Disclosure of contingencies relating to the leak including contingent assets arising from potential reimbursements from co-owners of the damaged well.

British Broadcasting Corporation Period End 31 March 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.

Casino, Guichard-Perrachon SA Period End 31 December 2009

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.

TUI Travel plc Period End 30 September 2009

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.

Add new comment

Aberdeen Asset Management plc Period End 30 September 2009

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.

Add new comment

Barratt Developments plc Period End 30 June 2009

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.

Add new comment

Micro Focus International plc Period End 30 April 2009

Submitted by Company Reporting on Tue, 2009-09-29 23:00

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.

Add new comment

Air France-KLM SA Period End 31 March 2009

Submitted by Company Reporting on Mon, 2009-07-13 23:00

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.

Add new comment

Fortis NV Period End 31 December 2008

Submitted by Company Reporting on Wed, 2009-06-10 23:00

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.

Add new comment