Illiquid debt excluded from cash balances in correction of error French engineering company Vallourec restates its cash flow statements, increasing opening cash by €121 million, or 31.5%, to €504 million, with effects on comparative exchange differences and cash flows from financing activities.
Impending IFRS leaves open initial valuation policy on minority interests French engineering company Vallourec adopts early two impending IFRS Standards and states that it will decide on a case by case basis its policy on the valuation of minority interests whilst adopting a ‘partial goodwill’ method for a current year acquisition.
‘Defensive synergies’ identified as an element of goodwill French engineering company Vallourec identifies ‘defensive and commercial synergies’ as the primary element of €91.4 million goodwill recognised in the year and tells us what it understands by ‘defensive synergy’.
Significant restructuring disclosed outside financial statements Finnish engineering company Wärtsilä discloses a significant reduction of capacity, that it expects to lead to €140 million non-recurring costs equal to 25% of current year profit but, contrary to IFRS requirements, locates the principal disclosure outside the financial statements and notes.
State of order book included in segmental disclosures Finnish engineering company Wärtsilä discloses information by three business areas, including significant declines of up to 83% in new orders, whilst drawing attention to limitations of the information.
Statistical sampling approach to impairment test disclosures fall short of IFRS Finnish elevator and escalator company Kone discloses that its five largest cash-generating units (CGUs) contain 77% of its total goodwill, but does not disclose information about any individually significant CGU.
Use of management projections extended in impairment test UK conveyor belt manufacturer Fenner extends the use of management approved financial forecasts in impairment testing goodwill from one to three years, with no impairment recognised.