QinetiQ

Brexit Disclosures

As the Brexit uncertainty continues, we look at how Brexit has been disclosed in a sample of FTSE 350 annual report and accounts.

As things currently stand, ‘exit day’ is still scheduled to be on 29 March 2019, although the likelihood of this date slipping appears to be increasing. The Government has issued the statutory instrument (SI 2019/145), Accounts and Reports (Amendment) (EU Exit) Regulations 2018, which effectively cuts the UK’s ties with the EEA (European Economic Area). The changes proposed will be made to the Companies Act 2006 and secondary legislation, making EEA states third countries under UK law. The Government has also issued another SI The Statutory Auditors and Third Country Auditors(Amendment) (EU Exit) Regulations 2019 dealing with statutory auditors and third country auditors. 

The Government has issued a number of additional pieces of guidance on how companies should operate in the event of a no-deal Brexit occurring on 29 March, on topics ranging from competition, insolvency and intellectual property, to the recognition of professional qualifications.

The Financial Reporting Council (FRC) and the Department for Business, Energy and Industrial Strategy (BEIS) have published letters for auditors and accountants to share information in case there is no deal for leaving the EU by Friday 29 March 2019.

It remains to be seen when these changes will actually come into force, and if further discussions with the European Union will change proposals that have been made. Needless to say our technical team will follow developments closely and ensure legislation and commentaries on the Croner-i Tax and Accounting platform are updated as soon as possible.

QinetiQ Group plc Monitor

QinetiQ Group plc Annual Report 2017
CR Monitor Issue: 
2018/0110
Company covered: 
QinetiQ Group plc
Period End: 
31 March, 2017
Report issued on 23 January 2018 covered the following practice issues:
Change
Recognition of additional intangible assets following business acquisitions.
Change
Additional pension disclosures linked to IFRIC 14 introduced.
Change
Auditors report presentation enhanced by the inclusion of new information.
New
Annual report section added discussing alternative performance measures.

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.

QinetiQ Group plc Monitor

QinetiQ Group plc Annual Report 2016
CR Monitor Issue: 
2017/0209
Company covered: 
QinetiQ Group plc
Period End: 
31 March, 2016
Report issued on 20 February 2017 covered the following practice issues:
Pronouncements
Explanation of transitional methods in respect of new revenue standard.
Change
Change in policy in respect of research and development tax credit.
Change
Auditors identify other payables, provisions and contingent liabilities as an area of risk of material misstatement.
Change
‘Business transformation’ identified as a principal risk.

QinetiQ Group plc Monitor

QinetiQ Group plc  Annual Report 2014
CR Monitor Issue: 
2014/1007
Company covered: 
QinetiQ Group plc
Period End: 
31 March 2014
Report issued on 14 October 2014 covered the following practice issues:
Change
Decision to sell business leads to change in valuation method and impairment, but not to classification as held for sale.
Change
Impact of use of UK gilts based discount rate on triennial funding valuation indicated, without quantification.
Pronouncements
Strategic report replaces business review in management commentary.

IAS 19 Revised "Employee Benefits", an emerging issue under IFRS

This report focuses on the early adoption of amendments to IAS 19 “Employee benefits”. It considers three main areas: the recognition of actuarial gains and losses in other comprehensive income rather than partial recognition through profit or loss; the replacement of interest cost and expected return on plan assets with a net interest amount that is calculated by applying a discount rate to the net defined benefit obligation / asset; and the recognition of past service costs.

QinetiQ Group plc Monitor

QinetiQ Group plc Annual Report 2013
CR Monitor Issue: 
2013/1005
Company covered: 
QinetiQ Group plc
Period End: 
31 March 2013
Report issued on 14 October 2013 covered the following practice issues:
Change
Sensitivities disclosed for major impairment leading to loss for year.
Pronouncements
Early adoption of new pension rules reduces comparative profit.
Pronouncements
Implications of developments in UK GAAP for subsidiaries considered.
Pronouncements
Auditors' remuneration restated in line with UK requirements.
Change
Other comprehensive income analysed.
Change
Board diversity policy addresses gender balance.

QinetiQ Group plc Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
2013/0502
Period End: 
30 September 2012
Listing Status: 
FTSE Mid 250
ICB Industry Classification: 
2717 Defense
Auditor: 
KPMG
Change
Early adoption of IAS 19 reduces comparative profit.
Change
Going concern statement added to interim accounts.