Computacenter

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.

Computacenter Plc Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
2019/0310
Period End: 
30 June 2018
Listing Status: 
Europe 350
ICB Industry Classification: 
9533 Computer Services
Auditor: 
KPMG
Pronouncements
Adoption of IFRS 9 "Financial instruments".
Pronouncements
Adoption of IFRS 15 "Revenue from contracts with customers".
Pronouncements
Extended disclosure of the future expected impacts of IFRS 16 "Leases".
Change
Disclosure made in respect of change in segment reporting structure.

Computacenter Plc Monitor

Computacenter Plc Annual Report 2017
CR Monitor Issue: 
2018/1008
Company covered: 
Computacenter Plc
Period End: 
31 December, 2017
Report issued on 09 October 2018 covered the following practice issues:
Pronouncements
Extended disclosure in respect of the impacts of IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers" and IFRS 16 "Leases".
Change
Changes made in internal segmental reporting structure.
Change
Discussion of key audit matters included within auditors report.

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.

Computacenter Plc Monitor

Computacenter Plc Annual Report 2014
CR Monitor Issue: 
2015/0803
Company covered: 
Computacenter Plc
Period End: 
31 December 2014
Report issued on 03 August 2015 covered the following practice issues:
Restatement
Statement of cash flows restated for errors in presentation of amortisation and treasury shares.
Divergence
Prior period error on treasury shares corrected in current period.
Change
Business disposed of at short notice not classified as held for sale.

Computacenter plc

Computacenter plc Annual Report 2011
CR Monitor Issue: 
2012/0905
Company covered: 
Computacenter plc
Period End: 
31 December 2011
Report issued on 17 September 2012 did not identify any changes with significant impacts on the financial statements but covered the following practice issues:
Change
Distribution costs now included in cost of sales.
Change
Implementation of ERP system results in changes in classification of departmental costs.
Change
Luxembourg businesses transferred from Belgium segment to Germany.
Inconsistent
Full disclosures not made for business combinations.
Change
Items including acquisition-related costs classified as exceptional.