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.

Kingfisher PLC Monitor

Kingfisher PLC Annual Report 2017
CR Monitor Issue: 
Company covered: 
Kingfisher PLC
Period End: 
31 January, 2017
Report issued on 30 January 2018 covered the following practice issues:
Extended disclosure on the impacts of IFRS 15, IFRS 16 and IFRS 9.
Auditors' report enhanced by inclusion of a tabular summary of the audit approach.
Disclosure of non-GAAP measures extended to include underlying as well as adjusted measures.
Reconciliation of movements in provisions shows release of an unused amount following changes to restructuring plans.
Fair value gains recycled from other comprehensive income form part of profit on disposal.
Analysis of deferred tax assets and liabilities by type restated to reflect more appropriate allocation of balances.

Fair value measurement information under IFRS

IFRS 13 “Fair value measurement” sets out a single consistent framework for measuring fair value within IFRS financial statements and outlines a standardised set of disclosures in respect of fair value measurements. IFRS 13 has been mandatory now for some years, with application being required for annual reporting periods beginning on or after 1 January 2013. This report sets out the results of how requirements of the standard have been put into practice, both in terms of measurement and disclosure, in the consolidated financial statements of 139 large public limited companies with year ends between 31 March 2016 and 1 April 2017. It is not an exhaustive study of all aspects of IFRS 13 application and its conclusions are limited to our findings in respect of the areas analysed within the financial statements reviewed.

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.

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. 

Kingfisher plc Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
Period End: 
01 August 2015
Listing Status: 
FTSE 100
ICB Industry Classification: 
5375 Home Improvement Retailers
Adoption of levies interpretation affects timing of recognition of liabilities.
30% interest in business classed as financial asset after gain on disposal of 70% controlling interest.

Kingfisher plc Monitor

Kingfisher plc Annual Report 2013
CR Monitor Issue: 
Company covered: 
Kingfisher plc
Period End: 
2 February 2013
Report issued on 22 July 2013 covered the following practice issues:
Extended directors' remuneration policy table published in light of impending UK regulations.
Employer contributions to directors' pensions included in executive directors' remuneration table.
Directors' remuneration committee calendar and objectives published.

Inventories under IFRS

Based on a sample of 28 large listed European companies that report under IFRS, supplemented by Company Reporting data and comment, this report analyses the disclosure of inventory accounting practice. Included is an examination of company disclosures relating to cost allocation formulae and a survey of the methods identified.