Greene King

Risk and viability in the strategic report

In light of recent high-profile collapses such as Carillion, the reporting by companies of risks and long-term viability is once again in the spotlight. Investors and other stakeholders expect detailed, specific information in the annual report which clearly sets out the key risks facing the company and the potential impact of these risks on the company’s longer-term viability. This report analyses the consolidated financial statements of 20 UK listed companies to assess the quality of risk and viability reporting in the annual report.

Greene King plc Monitor

Greene King plc Annual Report 2017
CR Monitor Issue: 
2018/0306
Company covered: 
Greene King plc
Period End: 
30 April, 2017
Report issued on 13 March 2018 covered the following practice issues:
Change
Recognition of pension settlement gain.
Change
Audit report disclosure of risks of material misstatement extended.
Pronouncements
Disclosure of new standards issued but not yet effective extended to include disclosure initiative amendment to IAS 7 "Cash flow statements" and IFRIC 23 “Uncertainty over income tax treatments”.
New
Separate Alternative Performance Measures section included.
Change
Identification of new Key performance indicators.

Brexit Disclosures in Listed Company Annual reports

The referendum vote to leave the European Union (EU) has undoubtedly led to uncertainty for business and will potentially have far reaching impacts for companies from many different industries. This report, pulled together in March 2017, focuses on the information that companies have disclosed within their annual reports during the latter half of 2016. It sets out disclosures around risk as well as the disclosure of Brexit impacts which have already been felt and the resulting ramifications.

Operating Lease disclosures under IFRS

This report sets out our findings in respect of a review of the operating lease disclosures when acting as lessee of 35 companies listed on the London stock exchange. We consider a number of points including the disclosure, as currently governed under IFRS by IAS 17 “Leases”, of total future minimum lease payments focusing on the assets identified and the time periods presented; disclosure of minimum sublease payments expected to be received; disclosure of lease and sublease payments recognised in the period; and disclosure of the general terms of significant leasing arrangements including contingent rent payable basis, the existence and terms of renewal or purchase options and escalation clauses and restrictions imposed by lease arrangements such as those concerning dividends, additional debt and further leasing. 

Greene King plc Monitor

Greene King plc Annual Report 2016
CR Monitor Issue: 
2016/1201
Company covered: 
Greene King plc
Period End: 
1 May, 2016
Report issued on 5 December 2016 covered the following practice issues:
New
Goodwill linked to significant business acquisition represents expected operating synergies and business opportunities as a result of the increased size of the pub estate.
Change
Off-setting of deferred tax liabilities against deferred tax assets introduced.
New
Off-market contract liabilities recognised for the first time following a business acquisition.
Change
Additional reportable segments identified following business acquisition.
Change
Additional disclosures in the auditors’ report about conclusions provided to audit committee.

Greene King plc Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
2015/0212
Period End: 
19 October 2014
Listing Status: 
FTSE Mid 250
ICB Industry Classification: 
5757 Restaurants & Bars
Auditor: 
Ernst & Young
Change
Impairments and losses on disposals disaggregated from operating costs on face of income statement.
Change
Disclosure of developments in VAT appeal.
Change
Disclosure of proposed acquisition.

Greene King plc Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
2014/0504
Period End: 
13 October 2013
Listing Status: 
FTSE Mid 250
ICB Industry Classification: 
5757 Restaurants & Bars
Auditor: 
Ernst & Young
Pronouncements
Fair value of securitised debt disclosed as 1.4% less than carrying amount.
Pronouncements
Segmental assets and liabilities disclosed, with reconciliation to net assets.
Change
Recognition of liability in respect of VAT refund reduces profit before tax by 12.1%, following court decision.

VAT Refund - Income Or A Liability?

We have reviewed the treatment of VAT refunds by a small sample of companies pending a decision by the European Court of Justice.