TalkTalk Telecom

IFRS 15 impact disclosures - focus on telecommunications

In our last report on IFRS 15, we looked at the disclosure of the expected impact of the standard in a randomly selected group of 20 UK listed company accounts for periods ending 31 December 2017. None of the sample of companies had early adopted IFRS 15 and only 25% of the sample anticipated the adoption to have a material impact on their next set of financial statements. 

When selecting the sample of ten for this report, we included some 31 March 2018 year-end accounts and we have only included companies in the software and mobile telecommunications industry for which the adoption of IFRS 15 is expected to have a greater impact.  The new standard sets out five core principles that preparers should following when judging how to recognise revenue from longer-term contracts. In these two industries, companies often offer customers multi-year service contracts with equipment offered for no or a low fee. Under previous rules, there were a greater number of options available to companies, whereas IFRS 15 is considerably more prescriptive, and requires companies to split the revenue from these contracts based on the performance of the contract.

This report also includes some discussion of Capita Plc, which has early adopted the standard.


TalkTalk Telecom Group PLC Monitor

TalkTalk Telecom Group PLC Annual Report 2016
CR Monitor Issue: 
Company covered: 
TalkTalk Telecom Group PLC
Period End: 
31 March, 2016
Report issued on 7 March 2017 covered the following practice issues:
Statement of changes in equity divided into profit for the year, other comprehensive income and transactions with owners.
Exceptional revenue credit and operating expenses recognised in respect of cyber attack.
Deferred tax assets reduced following a reduction in tax rates.
Derivative financial instruments reclassified from current assets to non-current assets without explanation.
Full list of subsidiaries and joint ventures disclosed following a change to the Companies Act.
Exceptional income recognised following change in business acquisition contingent consideration.

TalkTalk Telecom Group PLC Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
Period End: 
30 September 2014
Listing Status: 
FTSE Mid 250
ICB Industry Classification: 
6535 Fixed Line Telecommunications
Effect of debt refinancing on finance costs disclosed.
Outstanding VAT ruling disclosed in contingent liabilities note.