Senior

Disclosure of the impact of IFRS 16

This report reviews the IFRS 16 Leases disclosures for the annual reports of 20 listed companies, selected at random, with 31 December 2018 year ends. Two of the reports had early adopted IFRS 16 and for the other reports we evaluated the extent to which detailed quantification as to the expected impact of the standard was disclosed, in order to address points raised by the Financial Reporting Council (FRC) in its Annual Review of Corporate Governance and Reporting 2017/2018

This report builds on the findings from our equivalent report in May 2018 for a sample of 20 listed companies with 31 December 2017 year ends (New standard disclosure – IFRS 16 Leases). No early adopters were found in the sample at that time. Only two companies quantified the expected impact and there was great variety in the level of detail provided, with many not meeting FRC expectations.

Segment Reporting

The requirement to disclose information on operating segments has been around for a number of years, firstly under IAS 14 Segment Reporting, and currently under IFRS 8 Operating Segments which has been applicable for entities with publicly traded debt or equity instruments (or those which are about to publicly trade) since 2009.
 
This report looks at the operating segment disclosures in the consolidated financial statements of 20 UK listed companies selected at random.
 

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.

Senior plc Monitor

Senior plc Annual Report 2017
CR Monitor Issue: 
2018/0416
Company covered: 
Senior plc
Period End: 
31 December, 2017
Report issued on 22 April 2018 covered the following practice issues:
Change
Change in allocation of assets to reporting segments.
Change
Extension of risk disclosures including identification of two new principal risks.
Change
Defined benefit pension risks disclosed.
Change
Extended disclosure of key audit matters including identification of two new areas.
Change
Disclosure of proposed changes to directors remuneration policy.

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.

Senior plc Monitor

Senior plc Annual Report 2016
CR Monitor Issue: 
2017/0512
Company covered: 
Senior plc
Period End: 
31 December, 2016
Report issued on 23 May 2017 covered the following practice issues:
Change
Tabular disclosure of principal risks includes new risk factors in respect of "Geopolitical impact" and "cyber/information security".
Pronouncements
Discussion of impacts of new standards added to accounting policies note.
Pronouncements
Quantified disclosure of the impacts of IFRS 16 "Leases"
Change
Property reclassified as asset held for sale.
Change
New summary section included in audit report.

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.

Senior plc Monitor

Senior plc Annual Report 2015
CR Monitor Issue: 
2016/0702
Company covered: 
Senior plc
Period End: 
31 December, 2015
Report issued on 26 July 2016 covered the following practice issues:
New
Business unit classified as held for sale following the signing a sale agreement.
New
Two non-quantified contigencies are disclosed.
Change
Separate line item introduced for current tax recievables on the face of the balance sheet.
Change
Extended disclosure of goodwill impairment test long-term growth rate assumptions.
Change
Intangible asset category "Intangible assets from acquisition" includes customer relationships previously presented separately.
New
Introduction of a new vision for sustainability.