Group plc Monitor Group plc Annual Report 2018
CR Monitor Issue: 
Company covered: Group plc
Period End: 
31 December, 2018
Report issued on 01 June 2019 covered the following practice issues:
The segmental information has been restated to reflect changes in the presentation of reportable segments.
IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers have been adopted from 1 January 2018.
Extended disclosure for the expected future impacts of IFRS 16 Leases.
Auditor’s report includes a new key audit matter and an additional statement on the going concern assumption.
A detailed discussion is presented for a business acquired during the year.
Discussion on reallocation of goodwill to the cash-generating units and on additional goodwill recognised after acquisition.

Adoption of IFRS 15 Revenue from Contracts with Customers

IFRS 15 Revenue from Contracts with Customers (IFRS 15) has replaced existing international revenue standards IAS 18 Revenue and IAS 11 Construction Contracts, as well as revenue related IFRIC and SIC interpretations, for periods beginning on or after 1 January 2018.

Croner-i has been tracking the disclosures made in relation to the forthcoming adoption of IFRS 15 through these Common Practice reports. Firstly in March 2018 looking at the disclosure of the impacts of the forthcoming standard in annual reports, and then again in September 2018 when the report focussed on the software and telecommunications industries which were expected to be most impacted.

This report looks at a selection of December 2018 and January 2019 year ends where full year disclosures in relation to the actual adoption of IFRS 15 are being made for the first time. This report covers both the impact of the adoption of IFRS 15, and what disclosures have been made in relation to the adoption.

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.

Contingent business combination payments to employees, an emerging issue under IFRS

This report focuses on companies’ treatment and disclosure of contingent business combination payments to selling parties which are linked to their employment subsequent to the transfer of control to the new owners. More specifically it considers whether companies describe such payments as consideration including them as part of the business combination or alternatively as a separate transaction. Company disclosures and the terminology used is also examined.