5757 Restaurants & Bars

Marston's plc Period End 2 October 2010

Submitted by Alisdair on Mon, 2011-02-14 08:03
Marston's plc Annual Report 2010
Imprudent treatment to recognise income on a VAT refund boosts profit
UK pub company Marston’s recognises a £4.7 million VAT refund as income, representing 9% of profit, although we consider this treatment, which contrasts with peers, imprudent in the light that it would be repaid if the tax authorities win an appeal.
Counter-intuitive disclosure that the fair value of nil cost options is zero
UK pub company Marston’s granted 2.9 million nil cost options under a Long Term Incentive Plan but states that the fair value per option granted is zero, although share price at the date of grant was 94.6p.

Sodexo SA Period End 31 August 2010

Submitted by Alisdair on Mon, 2011-01-31 07:56
Sodexo SA Annual Report 2010
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.

Enterprise Inns plc Period End 30 September 2010

Submitted by Alisdair on Tue, 2011-01-25 14:27
Enterprise Inns plc Annual Report Year
Recognition of a VAT refund as current provision contrasts with peers
UK pub company Enterprise Inns recognises a £6 million VAT refund as a current provision in treatment that contrasts with one group of peers which records a non-current payable or other liability and another group which recognises income.
Net charge on cancellation of swaps as a result of refinancing debt represents 45% of loss
Following refinancing its debt, UK pub company Enterprise Inns cancelled interest rate swaps relating to the original debt and recognises a £14 million net charge on one swap previously accounted for as a cash flow hedge, that represents 45% of pre-tax loss.

Mitchells & Butlers plc Period End 26 September 2010

Submitted by Alisdair on Wed, 2011-01-19 11:59
Mitchells & Butlers plc Annual Report 2010
Prudent treatment of VAT refund increases loss by 10%
UK pub company Mitchells & Butlers accounts for a £12 million VAT refund prudently and recognises a corresponding liability in the light of a guarantee to repay the amount if the tax authorities win an appeal and thus increases its pre-tax loss by 10%.
Irrecoverable element of potential future surplus increases pension deficit by 40%
UK pub company Mitchells & Butlers recognises an additional £56 million liability as part of a potential future pension surplus arising from additional contributions that will be irrecoverable.

Punch Taverns plc Period End 21 August 2010

Submitted by Alisdair on Wed, 2010-12-15 09:00
Punch Taverns plc Annual Report 2010
Inappropriate change in composition of loss on disposal
UK pub company Punch Taverns inappropriately changes to exclude goodwill allocated to non-current assets disposed of from loss on their disposal.