Mitchells & Butlers

Segment disclosures and the chief operating decision maker under IFRS

This report sets out our findings in respect of a review of the IFRS segment disclosures of 25 UK listed companies, drawn from a range of different industries, as covered by IFRS 8 “Operating segments”. We consider a number of points including disclosures in respect of the chief operating decision maker, the factors used to identify reportable segments and whether there has been aggregation of operating segments and income statement and statement of financial position information reported by segment.

Mitchells & Butlers plc Monitor

Mitchells & Butlers plc Annual Report 2016
CR Monitor Issue: 
2017/0310
Company covered: 
Mitchells & Butlers plc
Period End: 
24 September, 2016
Report issued on 28 March 2017 covered the following practice issues:
Change
Identification of “onerous lease provisions” as a new risk area of possible material misstatement by the auditors.
Change
Auditors' extend discussion of materiality by including a graphical presentation.
Change
Adoption of amendment to IAS 19 in respect of accounting for service linked employee contributions.
Pronouncements
Discussion of changes to IFRS 8 and IAS 24 as a result of annual IFRS improvements included.
Change
Tabular disclosure of principal risks includes "food supply chain safety" as a new principal risk.
Restatement
Financial liabilities restated to include accrued charges without explanation.

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. 

Fair value measurement disclosures - other assets: an emerging issue under IFRS

This report surveys fair value measurement disclosures on assets other than financial instruments, investment property and bearer plants.  Our sample covers biological assets, land and buildings, non-financial assets held in defined benefit pension schemes and cash-generating units whose recoverable amount is calculated using fair value less costs to sell. We note a predominance of classification at Level 3, indicating use of unobservable inputs.

Mitchells & Butlers plc Monitor

Mitchells & Butlers plc Annual Report 2014
CR Monitor Issue: 
2015/0118
Company covered: 
Mitchells & Butlers plc
Period End: 
27 September 2014
Report issued on 27 January 2015 covered the following practice issues:
Change
Drawdown of liquidity facility included in borrowings and financing cash flows, but no asset identified in contrast to peer company.
Pronouncements
Pensions finance charge included in "underlying profit".
Change
Effects of acquisitions on results disclosed.

Other Comprehensive Income: Presentation of items by reclassification status an emerging issue under IFRS

This report considers the presentation of other comprehensive income following the issue of amendments to IAS 1 “Presentation of financial statements”. It considers how the various line items that represent other comprehensive income are reported by nature focusing on the presentational split between those items that will not be reclassified subsequently to profit or loss and those that will be reclassified to profit or loss when specific conditions are met. 

Mitchells & Butlers plc Monitor

Mitchells & Butlers plc Annual Report 2013
CR Monitor Issue: 
2014/0114
Company covered: 
Mitchells & Butlers plc
Period End: 
28 September 2013
Report issued on 28 January 2014 covered the following practice issues:
Restatement
Pension restatement in accordance with guidance on IFRIC 14 reduces comparative equity by 13.3%.
Pronouncements
Auditors' report includes assessment of risks of material misstatement, overview of audit scope and determination of materiality level.
Pronouncements
Statement of other comprehensive income format changed.
Change
Presentation of directors' remuneration report changed.