Balfour Beatty

Disclosure of the impact of IFRS 16

This report reviews the IFRS 16 Leases disclosures for the annual reports of 20 listed companies, selected at random, with 31 December 2018 year ends. Two of the reports had early adopted IFRS 16 and for the other reports we evaluated the extent to which detailed quantification as to the expected impact of the standard was disclosed, in order to address points raised by the Financial Reporting Council (FRC) in its Annual Review of Corporate Governance and Reporting 2017/2018

This report builds on the findings from our equivalent report in May 2018 for a sample of 20 listed companies with 31 December 2017 year ends (New standard disclosure – IFRS 16 Leases). No early adopters were found in the sample at that time. Only two companies quantified the expected impact and there was great variety in the level of detail provided, with many not meeting FRC expectations.

Balfour Beatty plc Monitor

Balfour Beatty plc Annual Report 2017
CR Monitor Issue: 
Company covered: 
Balfour Beatty plc
Period End: 
31 December, 2017
Report issued on 16 October 2018 covered the following practice issues:
Discussion of key audit matters included in audit report.
Separate sections outlining director and auditor responsibilities included in auditors' report.
Extended disclosure in respect of the impacts of new accounting standards including IFRS 9 "Financial instruments" and IFRS 15 "Revenue from contracts with customers".
Restatement of comparative income statement following classification of businesses disposed as discontinued operations.
Changes in pensions discount rate calculation methodology results in recognition of actuarial gain.
Recognition of adjusting post-balance sheet event linked to liquidation of Carillion.

Disclosure of the impacts of IFRS 16 "Leases"

IFRS 16 “Leases” will fundamentally change accounting by lessees as it requires assets previously off balance sheet under operating lease arrangements to be brought on balance sheet as is currently the case for finance leased assets. As a result on application companies will recognise both additional assets and additional liabilities. Consequently there will also be knock on effects in the income statement as operating lease charges are replaced by a depreciation charge and a finance expense. This report analyses the financial statements of a range of companies to firstly establish whether there has been any early adoption and secondly to establish what companies are disclosing in respect of IFRS 16 and its future impacts.

Balfour Beatty plc Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
Period End: 
26 June 2015
Listing Status: 
FTSE Mid 250
ICB Industry Classification: 
2357 Heavy Construction
Losses from ongoing contracts restated as prior period error.
Disposal of interest in a company leads to non-underlying gain.
Reclassification of business from discontinued to non-underlying continuing operations, after part disposal.