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. Group plc Group plc Annual Report 2011
CR Monitor Issue: 
Company covered: Group plc
Period End: 
31 December 2011
Report issued on 30 July 2012 did not identify any changes with significant impacts on the financial statements but covered the following practice issues:
Remuneration contingent on future employment treated as separate transaction, but still described as consideration.
Downward revaluation of contingent consideration treated as indicator of impairment.
New VAT recovery method leads to contingent asset.

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.