Separate disclosure about proposed changes to Articles of Association
UK investment trust The Bankers Investment Trust discloses separately proposed changes to its Articles of Association prompted by new requirements under the Companies (Shareholders’ Rights) Regulations 2009 and the Companies Act 2006.

Minority interest buy-out significantly reduces equity as finance costs classified as exceptional
Swiss pharmaceuticals company Roche classifies as exceptional financing costs associated with acquisition of minority interest that reduces its equity by 82%.

Exclusion of salary costs from research and development expenditure conflicts with IFRS
UK pharmaceutical company Sinclair Pharma excludes salary costs from its research and development expenditure in treatment that conflicts with IFRS.

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.

No error admitted, as client relationships with finite lives separated from goodwill
UK investment manager Brewin Dolphin restates its accounts to recognise at the balance sheet date £37 million client relationships subject to amortisation separately from goodwill, leading to a 12% decrease in comparative profit, but treats this as a change of accounting policy rather than correction of an error.

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.

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.

New goodwill impairment sensitivity analysis not fully in accordance of IFRS
UK catering company Compass publishes a goodwill impairment sensitivity analysis showing changes in assumptions that would eliminate headroom in the UK & Ireland cash-generating unit but, by not disclosing the amount of headroom, reduces its usefulness.
 

Costs arising from rights issue increase loss by 36.7%
UK mining company Lonmin carried out a rights issue and recognises US$73 million costs, including those arising from classification of the rights issue as a derivative liability, which increase pre-tax loss by 36.7%.
 

“Severe” changes in assumptions used in testing goodwill for impairment
UK publisher Euromoney Institutional Investor indicates impairment would result from “severe” changes in the assumptions used in goodwill impairment test, although IFRS requires disclosure only of reasonably possible changes that would eliminate headroom.
 

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.

Fair value hierarchy of financial instruments disclosed and a parametric VaR used to manage market risks
German engineering company Siemens discloses its use of a three-level hierarchy to fair value financial instruments and changes to implement variance-covariance Value at Risk methodology to manage its market risks.