Victrex

Intangible assets - disclosure of impairments

Businesses are currently facing a number of challenges, such as uncertainty surrounding Brexit and a sluggish economy. The retail sector in particular is experiencing a higher level of impairments (and, for some, going concern issues) as they contend with slow sales, high business rates and plenty of competition. Tougher economic conditions generally lead to increased risks of impairment, particularly for intangible assets such as goodwill. 

In the technical findings from the Financial Reporting Committee’s 2017/18 Corporate Reporting Review, published in October 2018 (FRC technical findings 2018), impairment was one area highlighted where additional information was often requested and disclosures did not always contain all the required information.

When writing this report the latest 2017 and 2018 financial statements of 20 UK listed companies were selected at random for review of the impairment-related disclosures, focussing on intangible assets. It was ensured that a variety of industries such as retail, IT services and tourism and leisure were included.

Victrex plc Monitor

Victrex plc Annual Report 2018
CR Monitor Issue: 
2019/0317
Company covered: 
Victrex plc
Period End: 
30 September, 2018
Report issued on 26 March 2019 covered the following practice issues:
Pronouncements
Extended disclosure in respect of the expected future impacts of new accounting standards including IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers" and IFRS 16 "Leases".
Change
Disclosure that a post balance sheet court ruling will impact pension obligations in the future.
Change
Disclosure of a new share-based payment plan.
Change
Interest and finance income & expenses presented on gross basis instead of net basis.

Brexit Disclosures

As the Brexit uncertainty continues, we look at how Brexit has been disclosed in a sample of FTSE 350 annual report and accounts.

As things currently stand, ‘exit day’ is still scheduled to be on 29 March 2019, although the likelihood of this date slipping appears to be increasing. The Government has issued the statutory instrument (SI 2019/145), Accounts and Reports (Amendment) (EU Exit) Regulations 2018, which effectively cuts the UK’s ties with the EEA (European Economic Area). The changes proposed will be made to the Companies Act 2006 and secondary legislation, making EEA states third countries under UK law. The Government has also issued another SI The Statutory Auditors and Third Country Auditors(Amendment) (EU Exit) Regulations 2019 dealing with statutory auditors and third country auditors. 

The Government has issued a number of additional pieces of guidance on how companies should operate in the event of a no-deal Brexit occurring on 29 March, on topics ranging from competition, insolvency and intellectual property, to the recognition of professional qualifications.

The Financial Reporting Council (FRC) and the Department for Business, Energy and Industrial Strategy (BEIS) have published letters for auditors and accountants to share information in case there is no deal for leaving the EU by Friday 29 March 2019.

It remains to be seen when these changes will actually come into force, and if further discussions with the European Union will change proposals that have been made. Needless to say our technical team will follow developments closely and ensure legislation and commentaries on the Croner-i Tax and Accounting platform are updated as soon as possible.

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.

Victrex plc Monitor

Victrex plc Annual Report 2016
CR Monitor Issue: 
2017/0305
Company covered: 
Victrex plc
Period End: 
30 September, 2016
Report issued on 14 March 2017 covered the following practice issues:
Change
Disclosure of estimates and judgements extended to include information in respect of provisions and contingencies.
Change
Disclosure of proposed changes to directors' remuneration policy.

Viability statements: an emerging issue in the UK

This Emerging issue report analyses the content of early viability statements issued in the annual reports of UK companies, prepared under the UK Corporate Governance Code 2014, effective for periods beginning on or after 1 October 2014.

Victrex plc Monitor

Victrex plc Annual Report 2015
CR Monitor Issue: 
2016/0204
Company covered: 
Victrex plc
Period End: 
30 September, 2015
Report issued on 12 February 2016 covered the following practice issues:
New
Possible tax rebate disclosed on acquired goodwill.
New
Impending changes in deferred tax arising from changes in tax rates disclosed.
Change
Viability statement under UK Corporate Governance Code looks ahead for five years.
Change
Graphical presentation of application of materiality in external auditor's report.

Income statement format - Victrex plc

Period End: 
30 September 2013
Period End Date: 
2013-09-30
Listing Status: 
FTSE Mid 250
ICB Industry Classification: 
1357 Specialty Chemicals
Auditor: 
KPMG