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.

Tesco PLC Monitor

Tesco PLC Annual Report 2017
CR Monitor Issue: 
Company covered: 
Tesco PLC
Period End: 
25 February, 2017
Report issued on 08 September 2017 covered the following practice issues:
Auditors identify "Tesco Bank payment fraud" as a risk of material misstatement.
Balance sheet format altered to correctly present assets and liabilities as either current or non-current.
Impairment recognised as adjusting post balance sheet event as part of discontinued operations.
Discussion of critical judgements introduced.
Restatement of carrying amount of non-current liabilities within material joint venture to reflect credit risk valuation adjustments.

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.

Operating Lease disclosures under IFRS

This report sets out our findings in respect of a review of the operating lease disclosures when acting as lessee of 35 companies listed on the London stock exchange. We consider a number of points including the disclosure, as currently governed under IFRS by IAS 17 “Leases”, of total future minimum lease payments focusing on the assets identified and the time periods presented; disclosure of minimum sublease payments expected to be received; disclosure of lease and sublease payments recognised in the period; and disclosure of the general terms of significant leasing arrangements including contingent rent payable basis, the existence and terms of renewal or purchase options and escalation clauses and restrictions imposed by lease arrangements such as those concerning dividends, additional debt and further leasing. 

Tesco plc Monitor

Tesco PLC Annual Report 2016
CR Monitor Issue: 
Company covered: 
Tesco PLC
Period End: 
27 February, 2016
Report issued on 07 November 2016 covered the following practice issues:
Change in the income statement format from single column to multi-column to highlight exceptional items.
Gain on closure of employee benefit plan recognised as an exceptional item.
Greater aggregation of reporting segments as a result of revised management reporting structure.
More detailed analysis of operating, investing and financing cash flows on the face of the cash flow statement.
Internally generated intangible assets aggregated with other intangible assets.

Key management remuneration - Tesco Plc

Period End: 
28 February 2015
Period End Date: 
Listing Status: 
S&P Europe 350
ICB Industry Classification: 
5337 Food Retailers & Wholesalers

Accounting Errors - A State Of Denial?

This report reviews disclosures made by companies when their financial statements have been restated to correct prior period errors.