Halma

Disclosure of judgements and estimates

At the end of 2017, the FRC published a thematic review which focused on the disclosure of critical judgements and sources of estimation uncertainty, a requirement of IAS 1 Presentation of Financial Statements. This review was carried out in part because, in its 2016-17 corporate reporting review, the FRC found that companies were not making sufficiently clear disclosures in this area.

Unfortunately, despite this, judgements and estimates still represent an area of difficulty for companies, remaining the area most commonly raised by the Corporate Reporting Review Panel in reviewing company accounts during 2017–18. Common issues include poor explanations, a failure to separate judgements and estimates clearly and discussion of judgements and estimates that were not considered by the company to be significant or material. In some cases the FRC noted that disclosures elsewhere in the accounts suggested that significant judgements were made but these were not included in or referred to in the IAS 1 disclosures.

As a result of this, the FRC can be expected to continue its scrutiny of these disclosures and to challenge companies that do not provide clear, specific disclosures that meet the requirements of IAS 1.

This report analyses the disclosures about judgements and estimates which have been included in the consolidated annual reports of 20 UK listed companies selected at random from the FTSE 350.

Segment Reporting

The requirement to disclose information on operating segments has been around for a number of years, firstly under IAS 14 Segment Reporting, and currently under IFRS 8 Operating Segments which has been applicable for entities with publicly traded debt or equity instruments (or those which are about to publicly trade) since 2009.
 
This report looks at the operating segment disclosures in the consolidated financial statements of 20 UK listed companies selected at random.
 

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.

Halma plc Monitor

Halma plc Annual Report 2017
CR Monitor Issue: 
2018/0113
Company covered: 
Halma plc
Period End: 
1 April, 2017
Report issued on 30 January 2018 covered the following practice issues:
Restatement
Finalisation of provisional business combinations fair values results in restatement of prior year amounts in respect of one acquisition but adjustments are made in the current year in respect of another.
Change
Detailed description of the factors behind current year acquisition goodwill.
Pronouncements
Disclosure of expected impacts of new standards including IFRS 15, IFRS 9 and IFRS 16.
Change
Non-GAAP disclosures enhanced to include segment organic growth figures at constant currency rates.

Halma plc Monitor

Halma plc Annual Report 2015
CR Monitor Issue: 
2015/0910
Company covered: 
Halma plc
Period End: 
28 March, 2015
Report issued on 28 September 2015 covered the following practice issues:
Restatement
Average capital used to calculate performance measures in place of year-end figures.
Change
Graphical presentation of audit materiality, as threshold lowered.

Halma plc Monitor

Halma plc Annual Report 2014
CR Monitor Issue: 
2014/1010
Company covered: 
Halma plc
Period End: 
29 March 2014
Report issued on 21 October 2014 covered the following practice issues:
Inconsistent
Assumptions used to determine value in use of cash generating units disclosed, highlighting prior year non-compliance.
Change
Curtailment gains on defined benefit pension plans contribute 2.8% of profit before tax.
Change
Charts used to indicate audit coverage in external auditor's report.
Pronouncements
Strategic report included in management commentary.
Change
Contingent purchase consideration reclassified from trade and other payable to provisions.

Halma plc Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
2013/0314
Period End: 
28 September 2013
Listing Status: 
FTSE Mid 250
ICB Industry Classification: 
2737 Electronic Equipment
Auditor: 
Deloitte
Pronouncements
Adoption of new pension rules decreases adjusted profit.
Pronouncements
Derivative financial instruments disclosed at Level 2 of the fair hierarchy.
Change
Reportable segments restated.
Change
Terms, justification and provisional accounting disclosed for business combination.

Halma plc Period End 31 March 2007

Halma Annual Report 2007

Slow progress on non-financial key performance indicators 
UK engineering company Halma states that it will report on its non-financial key performance indicators (KPIs) next year as they remain under development.