Domino's Pizza

Alternative Performance Measures (APMs)

In this Common Practices report we look at what APMs are; how companies are using them; and what they mean for the users of accounts when comparing them to others. This report examines the APMs that are stated within recent company and group accounts for a sample of 20 companies. Our selected sample covers year ends from 30 June 2017 to 31 March 2018. All companies report under International Financial Reporting Standards (IFRS) as adopted in the EU. Throughout this report, we look at some of the recommendations put forward by the European Securities and Markets Agency (ESMA) in their guidelines setting out best practice on APMs in 2015, which became effective from 3 July 2016, as well as the observations made by the FRC, assessing whether and how companies have implemented them. 

New standard disclosure - IFRS 16 "Leases"

This report revisits the findings of the CR Emerging Issues Report "Disclosure of the impacts of IFRS 16 "Leases", and assesses 20 companies with 31 December 2017 year ends, to understand if some of the trends of the previous report are repeated. After the last report, we expected to see more companies early adopting, as well as more providing qualitative commentary on their expected materiality position post-implementation. We will assess whether this is the case. 16 of the 20 companies reviewed were in the original sample.

New standard disclosure - IFRS 15

IFRS 15 Revenue from Contracts with Customers (IFRS 15) is one of two major new standards being applied from financial periods beginning on or after 1 January 2018 (the other being IFRS 9 Financial Instruments). In the years leading up to this, there has been an increased focus by the Financial Reporting Council (FRC) on the disclosures setting out the impact of forthcoming accounting standards in the financial statements, as required by IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8).

The FRC commented on these disclosures in its Annual Review of Corporate Reporting for the 2016-17 year-ends (annual review), and noted in its year-end advice letter to audit committee chairs and finance directors (FRC advice letter) (attached as an appendix to the report), that it expected to see a ‘step change’ in the quality of the disclosures assessing the impact of new accounting standards in the 2017-18 financial statements.

This report analyses the disclosures assessing the impact of IFRS 15 which have been included in the consolidated financial statements of 20 UK listed companies selected at random with a focus on industries where IFRS 15 has most impact.

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.

Domino’s Pizza Group plc Monitor

Domino’s Pizza Group plc Annual Report 2014
CR Monitor Issue: 
2015/0807
Company covered: 
Domino’s Pizza Group plc
Period End: 
28 December, 2014
Report issued on 10 August 2015 covered the following practice issues:
Restatement
Comparative revenue restated for internal sales.
Change
Non-GAAP measures presented on face of income statement.
Change
Cross references added to external auditor's report.

Domino’s Pizza Group plc Monitor

Domino’s Pizza Group plc Annual Report 2013
CR Monitor Issue: 
2014/0617
Company covered: 
Domino’s Pizza Group plc
Period End: 
31 December 2013
Report issued on 27 June 2014 covered the following practice issues:
Change
Exceptional impairments go beyond what was considered reasonably possible last year.
Pronouncements
New format adopted for Directors' remuneration report.
Pronouncements
Extended format adopted for external auditor's report.

Domino’s Pizza Group plc Monitor

Domino’s Pizza Group plc Annual Report 2012
CR Monitor Issue: 
2013/0418
Company covered: 
Domino’s Pizza Group plc
Period End: 
30 December 2012
Report issued on 29 April 2013 covered the following practice issues:
Change
Profits of held for sale businesses contributed to joint ventures included in joint venture results.
Change
Share of joint venture losses in excess of initial investment not recognised.

The classification of acquisition transaction costs, an emerging issue under IFRS

This report focuses on companies’ presentation of acquisition-related costs both in the income and cash flow statements. More specifically it considers where such costs are reflected in the income statement and whether they are identified as operating or investing in nature within the cash flow statement.