Sage

Risk and viability in the strategic report

In light of recent high-profile collapses such as Carillion, the reporting by companies of risks and long-term viability is once again in the spotlight. Investors and other stakeholders expect detailed, specific information in the annual report which clearly sets out the key risks facing the company and the potential impact of these risks on the company’s longer-term viability. This report analyses the consolidated financial statements of 20 UK listed companies to assess the quality of risk and viability reporting in the annual report.

Sage Group plc Monitor

Sage Group plc Annual Report 2017
CR Monitor Issue: 
2018/0211
Company covered: 
Sage Group plc
Period End: 
30 September 2017
Report issued on 27 February 2018 covered the following practice issues:
Change
Detailed disclosures in respect of business combinations including a stepped acquisition.
Change
Separate disclosure of discontinued operations on the face of the income statement.
Pronouncements
Disclosure of future impact information in respect of new standards yet to be adopted including IFRS 15 "Revenue from contracts with customers" and IFRS 16 "Leases".
Change
Change in segment reporting to introduce a flatter more focused structure.

The Sage Group plc Monitor

The Sage Group plc Annual Report 2016
CR Monitor Issue: 
2017/0707
Company covered: 
The Sage Group plc
Period End: 
30 September, 2016
Report issued on 17 July 2017 covered the following practice issues:
Change
Designation as "Exceptional (non-recurring) items" identified as a significant accounting and reporting matter in corporate governance report.
Change
'Changes in finance systems and processes' identified as a risk of material misstatement by auditors.
Pronouncements
Un-quantified disclosure added regarding impact of impending revenue recognition standard.
Change
Newly acquired 20.7% holding in investment accounted for as an associate using the equity method.
New
Flowchart added to directors remuneration report showing amended conditions attached to performance share plan.
New
Directors remuneration report enhanced by inclusion of remuneration at a glance section.

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.

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.

Share-based payments under IFRS disclosure of the extent of arrangements and valuation

This report examines company disclosures in respect of share-based payment arrangements. It considers specifically disclosures in relation to the extent of such arrangements and the valuation of instruments granted. In relation to the valuation of share options the report considers the valuation methods applied by the sample companies.  

Sage Group Plc Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
2015/0606
Period End: 
31 March 2015
Listing Status: 
FTSE 100, Europe 350
ICB Industry Classification: 
9537 Software
Auditor: 
Ernst & Young
Change
Unadjusted and statutory profit reconciled on face of income statement.
Change
Cash outflows on acquisitions presented in table, showing separately consideration and borrowings acquired.

Share-based Payment Arrangements under IFRS disclosure of nature and impact

This report examines company disclosures in respect of share-based payment arrangements. It considers specifically disclosures in relation to the nature of such arrangements and the impacts on profit or loss during the period. The report will also look at the overall significance of share-based payments by considering total share-based payment expense as a percentage of profit after tax, the length of disclosure in the financial statements and the number of share-based payment schemes that companies have.

The Sage Group plc Monitor

The Sage Group plc Annual Report 2013
CR Monitor Issue: 
2014/0212
Company covered: 
The Sage Group plc
Period End: 
30 September 2013
Report issued on 18 February 2014 covered the following practice issues:
Change
Losses on business disposals decrease pre-tax profit by 53.1%.
Divergence
No explanation of changes to range of discount rates applied in goodwill impairment testing.
Change
Dividend per share reported on both pre- and post-share consolidation basis, following special dividend.
Pronouncements
Auditors' report includes commentary on materiality level, audit scope and audit focus.