London Stock Exchange

Alternative Performance Measures (APMs)

In this Common Practices report we look at what APMs are; how companies are using them; and what they mean for the users of accounts when comparing them to others. This report examines the APMs that are stated within recent company and group accounts for a sample of 20 companies. Our selected sample covers year ends from 30 June 2017 to 31 March 2018. All companies report under International Financial Reporting Standards (IFRS) as adopted in the EU. Throughout this report, we look at some of the recommendations put forward by the European Securities and Markets Agency (ESMA) in their guidelines setting out best practice on APMs in 2015, which became effective from 3 July 2016, as well as the observations made by the FRC, assessing whether and how companies have implemented them. 

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.

London Stock Exchange Group plc Period End 31 March 2009

Reclassification of a bond as a fixed rate instrument prompts prior year adjustment

London Stock Exchange changes to account for a bond as a fixed rather than a floating rate instrument and restates its prior year comparatives whereby pre-tax profit reduces by £7.7 million.

£484 million goodwill impairments lead to a loss for the year

London Stock Exchange recognises £484 million impairments against goodwill, mostly relating to a prior year acquisition, leading to a loss for the year.

London Stock Exchange Group plc Period End 31 March 2007

Reverse acquisition accounting adopted
London Stock Exchange undergoes a restructuring whereby a new holding company is installed using reverse acquisition accounting.

Capital redemption reserve created but net liabilities arise
London Stock Exchange creates a capital redemption reserve of £259 million following return of cash to shareholders and share buy-back.