Accounting estimates and judgements

Euromoney Institutional Investor plc Monitor

Euromoney Institutional Investor plc Annual Report 2018
CR Monitor Issue: 
2019/0314
Company covered: 
Euromoney Institutional Investor plc
Period End: 
30 September, 2018
Report issued on 19 March 2019 covered the following practice issues:
Pronouncements
Additional disclosure in respect of the impact of new accounting standards including IFRS 9 “Financial instruments”, IFRS 15 “Revenue from contracts with customers” and IFRS 16 “leases”.
Change
Detailed discussion on the new key audit matter added in the auditor’s report.
Restatement
Change in methodology for allocation of corporate cost along with restatement of comparative figures.
Change
Deferred tax changes recognised following changes to US tax legislation.
Pronouncements
Presentation of a reconciliation of movements in liabilities arising from financing activities following adoption of an amendment to IAS 7 "Statement of cash flows".
Change
Extended disclosure in respect of contingent liabilities.

Imperial Brands Plc Monitor

Imperial Brands Plc Annual Report 2018
CR Monitor Issue: 
2019/0313
Company covered: 
Imperial Brands Plc
Period End: 
30 September, 2018
Report issued on 19 March 2019 covered the following practice issues:
Pronouncements
Additional disclosure in respect of the impact of new accounting standards including IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers” and IFRIC 23 “Uncertainty over income tax treatments”.
Change
Extended disclosure in relation to key judgement made in respect of consolidation of subsidiary.
Change
Disclosure made in respect of post balance sheet events.
Change
Detailed discussion of two new key audit matters added to the auditor’s report.
Change
Disclosure of a proposed change in the segmental reporting structure
Change
Provisional values finalised in respect of business acquired in previous year and information in respect of acquisition made during the year.

Sky Limited Monitor

Sky Limited Annual Report 2018
CR Monitor Issue: 
2019/0306
Company covered: 
Sky Limited
Period End: 
30 June, 2018
Report issued on 12 March 2019 covered the following practice issues:
Pronouncements
Extended disclosure in respect of the expected future impacts of new accounting standards including IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers" and IFRS 16 "Leases".
Change
Change in segmental reporting information with restatement of comparative information.
Change
Change in accounting estimates regarding 'sports-rights off season allocation'.
Change
Presentation of a reconciliation of movements in liabilities arising from financing activities following adoption of an amendment to IAS 7 "Statement of cash flows".
Change
Disclosure of the sensitivity analysis in respect of changes in impairment test assumptions.

Lonmin plc Monitor

Lonmin plc Annual Report 2018
CR Monitor Issue: 
2019/0303
Company covered: 
Lonmin plc
Period End: 
30 September, 2018
Report issued on 05 March 2019 covered the following practice issues:
Pronouncements
Extended disclosure in respect of the expected future impacts of new accounting standards including IFRS 9 "Financial instruments", IFRS 15 "Revenues from contracts with customers", and IFRS 16 "Leases".
Change
Calculation of goodwill linked to step acquisition takes into account fair value of previously held interests.
Change
Assets classified as held for sale disclosed separately on the face of balance sheet.
Change
Extended disclosure of accounting estimates and judgements includes a sensitivity analysis.

PZ Cussons Plc Monitor

PZ Cussons Plc Annual Report 2018
CR Monitor Issue: 
2019/0210
Company covered: 
PZ Cussons Plc
Period End: 
31 May, 2018
Report issued on 19 February 2019 covered the following practice issues:
Pronouncements
New disclosure in respect of the impact of new accounting standards including IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers” and IFRS 16 “leases”.
Change
Extended disclosure of critical accounting judgements and estimates in relation to a change in exchange rate used for translation.
Restatement
De-recognition of a retirement benefit surplus following a change in respect of whether a unconditional right to refund exists.
Change
Discussion of key audit matters included in the audit report.
Change
Adiitional disclosure in relation to provision for potential tax liability.
Change
Sensitivity analysis presented in respect of goodwill impairment tests.

Go-Ahead Group plc Monitor

Go-Ahead Group plc Annual Report 2018
CR Monitor Issue: 
2019/0116
Company covered: 
Go-Ahead Group plc
Period End: 
30 June, 2018
Report issued on 29 January 2019 covered the following practice issues:
Pronouncements
Extended disclosure in respect of the expected impact of IFRS 9 "Financial instruments".
Change
Extended disclosure in respect of reporting segments
Change
Recognition of a defined benefit pension gain following an inflation index change.
Change
Recognition of goodwill and tangible asset impairments.
Pronouncements
Adoption of a multi-column income statement format highlighting exceptional items.
Change
Extended disclosure in relation to key sources of estimation linked to contract and franchise accounting.

Bellway plc Monitor

Bellway plc Annual Report 2018
CR Monitor Issue: 
2019/0106
Company covered: 
Bellway plc
Period End: 
31 July, 2018
Report issued on 14 January 2019 covered the following practice issues:
Pronouncements
Extended disclosure in respect of the impact of the new accounting standards including IFRS 15 “Revenue from contracts with customers” and IFRS 16 "leases".
Pronouncements
Presentation of a reconciliation of movements in liabilities arising from financing activities following adoption of an amendment to IAS 7 "Statement of cash flows".
Change
Extended disclosure of accounting estimates and judgements includes a sensitivity analysis.

Disclosure of judgements and estimates

At the end of 2017, the FRC published a thematic review which focused on the disclosure of critical judgements and sources of estimation uncertainty, a requirement of IAS 1 Presentation of Financial Statements. This review was carried out in part because, in its 2016-17 corporate reporting review, the FRC found that companies were not making sufficiently clear disclosures in this area.

Unfortunately, despite this, judgements and estimates still represent an area of difficulty for companies, remaining the area most commonly raised by the Corporate Reporting Review Panel in reviewing company accounts during 2017–18. Common issues include poor explanations, a failure to separate judgements and estimates clearly and discussion of judgements and estimates that were not considered by the company to be significant or material. In some cases the FRC noted that disclosures elsewhere in the accounts suggested that significant judgements were made but these were not included in or referred to in the IAS 1 disclosures.

As a result of this, the FRC can be expected to continue its scrutiny of these disclosures and to challenge companies that do not provide clear, specific disclosures that meet the requirements of IAS 1.

This report analyses the disclosures about judgements and estimates which have been included in the consolidated annual reports of 20 UK listed companies selected at random from the FTSE 350.

Ashmore plc Monitor

Ashmore plc Annual Report Year 2018
CR Monitor Issue: 
2018/1214
Company covered: 
Ashmore plc
Period End: 
30 June, 2018
Report issued on 18 December 2018 covered the following practice issues:
Change
Disclosure of new key audit matter included.
Pronouncements
Disclosure of the impact of new standards issued or amended but not yet adopted including IFRS 15 “Revenue from Contracts with Customers”, IFRS 9 “Financial Instruments” and IFRS 16 “Leases”.
Change
Disclosure of post balance sheet acquisition.
Change
Disclosure on rebates on management fees and performance fees as an area of critical accounting judgement and estimate.
New
Disclosure of valuation techniques used for calculating the fair value of Level 3 investments.

Hays plc Monitor

Hays plc Annual Report 2018
CR Monitor Issue: 
2018/1202
Company covered: 
Hays plc
Period End: 
30 June, 2018
Report issued on 04 December 2018 covered the following practice issues:
Pronouncements
Extended disclosure in respct of new standards issued but not adopted including IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts and Customer.
Change
Chnage in segmental reporting structure.
Change
Disclosure of post balance sheet change to the funding of defined benefit pension obligations.
Change
Extended disclsoure of critical accounting judgements and estimates to include uncertain tax positions.
Change
Offsetting of deferred tax assets and liabilities.