Petrofac Limited Monitor

Petrofac Limited Annual Report 2016
CR Monitor Issue: 
Company covered: 
Petrofac Limited
Period End: 
31 December, 2016
Report issued on 03 October 2017 covered the following practice issues:
Introduction of detailed disclosure on expected impacts of adoption of IFRS 15 "Revenue from contracts with customers".
Restatement of reporting segments to reflect the business units through which services are provided.
Assets and liabilities held for sale presented separately within the statement of financial position.
Disclosure of proposed changes to directors' remuneration policy.

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.