Ocado

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.

Ocado Group plc Monitor

Ocado Group plc Annual Report 2016
CR Monitor Issue: 
2017/0612
Company covered: 
Ocado Group plc
Period End: 
27 November, 2016
Report issued on 27 June 2017 covered the following practice issues:
Restatement
Restatement of statement of other comprehensive income brings presentation into line with IFRS.
New
Disclosure of the external-audit tender process.
Change
Tabular disclosure of principal risks extended to identify Brexit as a new principal risk factor.
Change
Disclosure of proposed changes in remuneration policy and the rationale behind the changes.

Segment disclosures and the chief operating decision maker under IFRS

This report sets out our findings in respect of a review of the IFRS segment disclosures of 25 UK listed companies, drawn from a range of different industries, as covered by IFRS 8 “Operating segments”. We consider a number of points including disclosures in respect of the chief operating decision maker, the factors used to identify reportable segments and whether there has been aggregation of operating segments and income statement and statement of financial position information reported by segment.

Ocado Group plc Monitor

Ocado Group plc Annual Report 2015
CR Monitor Issue: 
2016/0306
Company covered: 
Ocado Group plc
Period End: 
29 November, 2015
Report issued on 18 March 2016 covered the following practice issues:
Pronouncements
Impending leases Standard said to apply irrespective of "substance over form" principle.
Change
Terms of lease transaction and dividend received from joint venture disclosed.
Change
Judgements and estimates to determine recognition of tax benefit considered as key area of focus.

Ocado Group plc Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
2014/0102
Period End: 
19 May 2013
Listing Status: 
FTSE Mid 250
ICB Industry Classification: 
5337 Food Retailers & Wholesalers
Auditor: 
PricewaterhouseCoopers
Change
Shareholders' approval requirement disclosed for licensing agreement for online sales.
Change
No gain or loss recognised on sale and leaseback transaction resulting in operating lease.

Ocado Group plc

Ocado Group plc Annual Report 2011
CR Monitor Issue: 
2012/0804
Company covered: 
Ocado Group plc
Period End: 
27 November 2011
Report issued on 10 August 2012 did not identify any changes with significant impacts on the financial statements but covered the following practice issues:
Change
Specific accounting policies distributed across related notes to the accounts.
Change
Method of arriving at market value of the company’s share changes following listing.
Restatement
Comparative inputs to option pricing model restated without explanation.
Change
Indirect transactions added to related party disclosures.
Change
Presentation of EBITDA calculation changed.
Restatement
Net exposure to currency risk restated.