Land Securities

UK Corporate Governance Code

Corporate governance has faced immense scrutiny recently following the high-profile collapses of BHS in 2016 and Carillion in January 2018, with MPs, the media and the public blaming the actions of the directors and auditors and all asking the same question… where was the board?

MPs, shareholders and the public have also been asking how effective the Financial Reporting Council’s (FRC) Corporate Governance Code has been in deterring poor corporate governance at the UK’s largest companies, following a raft of corporate failures. In July 2018 the FRC released a new UK Corporate Governance Code, (the Code) for listed companies in the UK. It also issued an update on its Guidance on Board Effectiveness. The Code is applicable to all companies with a premium listing, whether incorporated in the UK or elsewhere.

The new Code applies to accounting periods beginning on or after 1 January 2019, so with that in mind, this Common Practices report looks at how companies have been reporting on the current Code. We look at some good examples of reporting and look at the “explanations” made regarding compliance with the Code. We also discuss what’s new in the 2018 Code to enable readers to prepare for the upcoming changes.

The annual reports of 25 UK listed companies with year-ends between 31 December 2017 and 30 September 2018 were selected at random for review, across a range of industries. The full list of sample companies detailing company name, period end, auditor and industry classification can be found at the end of this report.

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.

Land Securities Group Plc Monitor

Land Securities Group Plc Annual Report 2017
CR Monitor Issue: 
2017/1012
Company covered: 
Land Securities Group Plc
Period End: 
31 March, 2017
Report issued on 31 October 2017 covered the following practice issues:
Change
Consideration of materiality results in aggregation of non-significant amounts on the face of the primary financial statements.
New
Disclosure of non-adjusting post balance sheet events included in the notes to the accounts.
Restatement
Financial instrument and fair value disclosures restated to include other investments for the first time.

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.

Land Securities Group Plc Monitor

Land Securities Group Plc Annual Report 2016
CR Monitor Issue: 
2017/0112
Company covered: 
Land Securities Group Plc
Period End: 
31 March, 2016
Report issued on 31 January 2017 covered the following practice issues:
Change
Disclosure of impact on defined benefit pension scheme of differences between valuation assumptions as agreed with trustees and on an IAS 19 basis.
Change
Separate disclosure of interest income and expense as attributable to revenue items and capital items.
Change
Cyber attack identified as a new principal risk factor.
New
Disclosure of amount of unutilised capital losses, on which no deferred tax asset is recognised.
Change
Additional disclosures included in audit report of conclusions given to the audit committee on the assessment of material risks of misstatement.
Change
Impairment reversals subsumed within costs line as a result of change in income statement presentation.

Investment properties - Land Securities Group Plc

Period End: 
31 March, 2015
Period End Date: 
2015-03-31
Listing Status: 
FTSE 100, S&P Europe 350
ICB Industry Classification: 
8671 Industrial & Office REITs
Auditor: 
Ernst & Young

Land Securities plc Period End 31 March 2006

IFRS standard fails on property goodwill impairment tests
UK property company Land Securities writes off immediately £65 million goodwill arising as a result of deferred tax following an acquisition, but finds itself at odds with industry peer CLS on the issue.


Smoothing of renegotiated debt
UK property company Land Securities moves to IFRS and ceases to treat a bond exchange as extinguishment of old debt and recognition of new debt.