Royal Mail

Disclosure of judgements and estimates

At the end of 2017, the FRC published a thematic review which focused on the disclosure of critical judgements and sources of estimation uncertainty, a requirement of IAS 1 Presentation of Financial Statements. This review was carried out in part because, in its 2016-17 corporate reporting review, the FRC found that companies were not making sufficiently clear disclosures in this area.

Unfortunately, despite this, judgements and estimates still represent an area of difficulty for companies, remaining the area most commonly raised by the Corporate Reporting Review Panel in reviewing company accounts during 2017–18. Common issues include poor explanations, a failure to separate judgements and estimates clearly and discussion of judgements and estimates that were not considered by the company to be significant or material. In some cases the FRC noted that disclosures elsewhere in the accounts suggested that significant judgements were made but these were not included in or referred to in the IAS 1 disclosures.

As a result of this, the FRC can be expected to continue its scrutiny of these disclosures and to challenge companies that do not provide clear, specific disclosures that meet the requirements of IAS 1.

This report analyses the disclosures about judgements and estimates which have been included in the consolidated annual reports of 20 UK listed companies selected at random from the FTSE 350.

Royal Mail plc Monitor

Royal Mail plc Annual Report 2017
CR Monitor Issue: 
2018/0311
Company covered: 
Royal Mail plc
Period End: 
26 March, 2017
Report issued on 20 March 2018 covered the following practice issues:
Restatement
Change in segment disclosures to reflect management of resources.
Change
Separate disclosure of material business combination.
Change
Defined benefit pension changes including plan to close scheme to future accrual and recognition of insurance policy.
Change
Tabular disclosure of principal risks extended to include disclosure of new risk factor.
Change
Enhancements of audit report presentation include overview section and use of diagrams.
Change
Alternative performance measures section included in annual 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.

Royal Mail plc Monitor

Royal Mail plc Annual Report 2015
CR Monitor Issue: 
2016/0207
Company covered: 
Royal Mail plc
Period End: 
29 March, 2015
Report issued on 19 February 2016 covered the following practice issues:
New
Bond issue designated as hedging instrument of investments in foreign operations.
New
Terms of renegotiated loan facility disclosed.
Change
Business classified as discontinued operation.