MITIE

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.

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.

Mitie Group plc Monitor

Mitie Group plc Annual Report 2016
CR Monitor Issue: 
2016/1004
Company covered: 
Mitie Group plc
Period End: 
31 March, 2016
Report issued on 10 October 2016 covered the following practice issues:
Change
New table published disclosing the impact of principal risks on its strategic aims.
New
Recognition of impairment loss due to discontinuance of contracts.
Pronouncements
Viability statement published looking ahead for three years.
Inconsistent
No reference to restatement of prior year segmental information following change in segmental reporting structure.