Richemont

Compagnie Financière Richemont SA Monitor

Compagnie Financière Richemont SA Annual Report 2015
CR Monitor Issue: 
2016/0310
Company covered: 
Compagnie Financière Richemont SA
Period End: 
31 March, 2015
Report issued on 29 March 2016 covered the following practice issues:
New
Loss due to currency devaluation approximates 53% of profit before tax.
Change
Disclosure regarding significant influence in successor business to discontinued operation.

Joint Arrangements: An emerging issue under IFRS

This report focuses on the financial reporting by entities that have an interest in arrangements which are controlled jointly with another party, in light of the requirements of IFRS 11 “Joint arrangements”. It covers company application of the concept of joint control taking into account the guidance given by IFRS to companies to determine whether arrangements fall within the scope of IFRS 11. It further covers the review undertaken by companies based on the rights and obligations held to determine whether the joint arrangements that exist are considered joint ventures or joint operations and the subsequent accounting of such arrangements in line with the equity accounting method as per IAS 28 “Investments in associates and joint ventures” or of the entities proportionate share of assets, liabilities, revenue and expenses respectively. Finally it considers the financial and presentational impacts of IFRS 11 adoption.   

Land Lease Classification, an emerging issue under IFRS

This report focuses on companies accounting for land leases. More specifically it considers the reclassification of such as finance leases rather than operating leases following an amendment to IAS 17 “Leases”.

Compagnie Financière Richemont SA Period End 31 March 2010

Compagnie Financière Richemont SA Annual Report Year
Policy for whether to classify investments as cash equivalents conflicts with IFRS
Swiss luxury goods company Compagnie Financière Richemont newly discloses a policy to apply a threshold in determining when to reclassify its investments in funds specialising in government bonds out of cash equivalents, which conflicts with IFRS and results in significant fluctuation in its cash balances.

Disclosure of a future significant gain from a post balance sheet acquisition
Swiss luxury goods company Compagnie Financière Richemont discloses a €102 million gain on revaluing its previous interest in a company acquired after the balance sheet date and application of a new IFRS to the acquisition means this will be recorded in the income statement rather than directly in equity.