Explanation for balance sheet restatements not compelling UK retailer Tesco attributes derecognition of prior year £588 million financial assets and liabilities to a change in policy arising from “emerging industry practice” but we consider it involves an accounting error.
Liquidity disclosures significantly at odds with IFRS Swedish paper manufacturer Holmen discloses explicitly that it includes only carrying amounts and not undiscounted cash flows in its maturity analysis of SEK5.8 billion financial liabilities, in a presentation that differs from that of other companies and conflicts with IFRS.
Previous error in disclosure of goodwill corrected without any explanation Swedish bank Svenska Handelsbanken corrects a previous error of not eliminating accumulated goodwill amortisation against the gross amount on its transition to IFRS but does not disclose this fact.
Transfer between reserves lacks clarity and enquiry reveals an error in previous disclosures UK media company Daily Mail and General Trust discloses that a current year transfer between reserves relating to an unrealised gain should have been made last year but this conflicts with previous disclosures showing that the gain had already been transferred and is explained as an error in those disclosures.
Profit reduced by 17% following correction of a prior year error
UK pub company JD Wetherspoon chooses not to correct a prior period error retrospectively but to record the cumulative impact in the current year that reduces pre-tax profit by 17%.
Discovery of prior year error prompts restatement UK financial company Hargreaves Lansdown corrects an error and eliminates a prior year £12 million gain arising from a sale of its own shares leading to a 55% reduction of income recognised in equity.
Error identified in misstating share capital as £25m rather than £25,000 UK investment company HSBCInfrastructure Company corrects an error in misstating its share capital as £25 million instead of £25,000 whereby comparative distributable reserves increase by 8.7%.
Error identified in measuring deferred payables UK home builder Barratt Developments corrects an error in relation to deferred term land purchases and restates comparative financial statements, but the impacts are not significant.
Exceptional write-downs and restructuring costs reduce profit by 65% UK home builder Barratt Developments presents as exceptional items £255 million costs in relation to inventory write-downs, impairments of intangibles and restructuring, that reduce pre-tax profit by 65%.
Error in accounting for a zero-coupon bond corrected German bank Commerzbank corrects an error relating to the measurement of a zero-coupon bond and consequently restates its prior year financial statements.