Foreign currencies

BG Group plc Period End 31 December 2010

Submitted by Company Reporting on Wed, 2011-10-26 10:35

CR Monitor Issue:

2011/1011

Company covered:

BG Group plc

Period End:

31 December 2010

Report issued on 26 October 2011 did not identify any changes with significant impacts on the financial statements but covered the following practice issues:

Presentation currency changes to US dollars as functional currency remains Sterling.

Intangible asset model adopted for service concession under IFRIC 12 "Service concession arrangements".

Power generation businesses treated as discontinued operations, with remaining power plants transferred to other operating segments.

Volvo AB Period End 31 December 2010

Submitted by Company Reporting on Fri, 2011-05-27 14:13

CR Monitor Issue:

2011/0518

Company covered:

Volvo AB

Period End:

31 December 2010

Report issued on 27 May 2011 did not identify any changes with significant impacts on the financial statements but covered the following practice issues:

Opening equity reduced by SEK 135 million in respect of expensing of acquisition related costs

Foreign exchange gains and losses related to financial instruments restated without explanation

Ladbrokes plc Period End 31 December 2010

Submitted by Company Reporting on Mon, 2011-05-09 07:43

CR Monitor Issue:

2011/0505

Company covered:

Ladbrokes plc

Period End:

31 December 2010

Report issued on 09 May 2011 covered the following practice issues:

Analysis of future minimum operating lease rentals restated.

Exchange rate sensitivity analysis enhanced

SGS SA Period End 31 December 2010

Submitted by Alisdair on Mon, 2011-04-11 07:14

Perfunctory disclosures on components of new goodwill
Swiss measurement services provider SGS echoes the language of IFRS 3 “Business combinations” and makes only perfunctory disclosures on CHF149 million goodwill arising on an acquisition, though this represents 10.2% of closing equity.

Beazley plc Period End 31 December 2010

Submitted by Alisdair on Wed, 2011-03-23 08:06

US$33.7 million income statement gain, along with an identical loss through other comprehensive income, arise from changing presentation and functional currency at different dates
Jersey registered insurance company Beazley changes from sterling to US dollar its presentation currency at the start of the year but changes its functional currency 3 months later leading to a US$33.7 million exchange gain in the income statement and “reversal” of this gain through other comprehensive income.

Sodexo SA Period End 31 August 2010

Submitted by Alisdair on Mon, 2011-01-31 07:56

Divergence of practice emerges on classification of cash
In a classification that varies from other companies, French catering provider Sodexo classifies almost €1.5 billion cash and cash equivalents carried at fair value through profit or loss at Level 2 of the fair valuation hierarchy of IFRS 7 “Financial instruments: disclosures”, indicating that they are valued using observable data other than quoted prices, though the company declines to tell us the observable data used.

Pernod Ricard SA Period End 30 June 2010

Submitted by YWang on Tue, 2010-10-26 09:20

Change in the functional currency of a subsidiary in hyperinflationary economy not fully explained
French drinks company Pernod Ricard does not fully explain the reason for changing the functional currency of a Venezuelan subsidiary from bolivar to the US dollar.

Eaga plc Period End 31 May 2010

Submitted by Company Reporting on Fri, 2010-10-01 10:50

New director receives free shares without prior approval of shareholders
UK energy efficiency company Eaga grants 0.25 million free shares to new director as a recruitment award without shareholders’ prior approval.

Micro Focus International plc Period End 30 April 2010

Submitted by Company Reporting on Tue, 2010-09-21 16:12

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.

Mediaset SpA Period End 31 December 2009

Impairment assumption disclosures leap beyond the ‘reasonably possible’
Italian media company Mediaset discloses the changes to its principal impairment test assumptions required that reduce recoverable amount to the carrying value, indicating that changes between 11% and 489% in discount rate would have this effect.