Alternative performance measures

Dairy Crest Group plc Monitor

Dairy Crest Group plc Annual Report 2017-18
CR Monitor Issue: 
2018/0913
Company covered: 
Dairy Crest Group plc
Period End: 
31 March, 2018
Report issued on 17 September 2018 covered the following practice issues:
Change
Discussion on a new key audit matter included in audit report.
Change
Separate sections outlining director and auditor responsibilities included in auditors' report.
Change
Change in inflation index assumption results in a reduction in pension obligations.
Change
Introduction of a separate section discussing alternative performance measures.
Change
Extended disclosure of principal risks.

Alternative Performance Measures (APMs)

In this Common Practices report we look at what APMs are; how companies are using them; and what they mean for the users of accounts when comparing them to others. This report examines the APMs that are stated within recent company and group accounts for a sample of 20 companies. Our selected sample covers year ends from 30 June 2017 to 31 March 2018. All companies report under International Financial Reporting Standards (IFRS) as adopted in the EU. Throughout this report, we look at some of the recommendations put forward by the European Securities and Markets Agency (ESMA) in their guidelines setting out best practice on APMs in 2015, which became effective from 3 July 2016, as well as the observations made by the FRC, assessing whether and how companies have implemented them. 

SSE plc Monitor

SSE plc Annual Report 2017
CR Monitor Issue: 
2018/0313
Company covered: 
SSE plc
Period End: 
31 March, 2017
Report issued on 20 March 2018 covered the following practice issues:
Change
Equity accounting applied in respect of joint venture investment following loss of control.
Pronouncements
Disclosure of impacts of future adoption of IFRS 9 "Financial instruments".
Pronouncements
Disclosure of expected future impacts of IFRS 15 "Revenues from contracts with customers" on revenue streams.
Pronouncements
Disclosure of expected impacts in respect of future adoption of IFRS 16 "Leases".
Change
Principal risk disclosures enhanced by inclusion of risk heat map.
Change
Alternative performance measures section included in annual report.

Royal Mail plc Monitor

Royal Mail plc Annual Report 2017
CR Monitor Issue: 
2018/0311
Company covered: 
Royal Mail plc
Period End: 
26 March, 2017
Report issued on 20 March 2018 covered the following practice issues:
Restatement
Change in segment disclosures to reflect management of resources.
Change
Separate disclosure of material business combination.
Change
Defined benefit pension changes including plan to close scheme to future accrual and recognition of insurance policy.
Change
Tabular disclosure of principal risks extended to include disclosure of new risk factor.
Change
Enhancements of audit report presentation include overview section and use of diagrams.
Change
Alternative performance measures section included in annual report.

Shaftesbury plc Monitor

Shaftesbury plc Annual Report 2017
CR Monitor Issue: 
2018/0301
Company covered: 
Shaftesbury plc
Period End: 
30 September, 2017
Report issued on 06 March 2018 covered the following practice issues:
Change
Profit on disposal of investment properties presented on the face of the income statement.
Change
New alternative performance measures section added to the annual report.
Pronouncements
Summarised disclosure of future impacts of new standards including quantification in respect of IFRS 16.
Restatement
Cash flow statement re-classification without full explanation.

Renishaw plc Monitor

Renishaw plc Annual report 2017
CR Monitor Issue: 
2018/0209
Company covered: 
Renishaw plc
Period End: 
30 June, 2017
Report issued on 20 February 2018 covered the following practice issues:
Restatement
Prior year restatement following discovery of accounting error in respect of hedge accounting.
Change
Results of discontinued operations highlighted in a separate line item on the face of the income statement.
Change
Auditors report enhanced by inclusion of overview of audit approach section and audit scope diagrams.
Change
Alternative performance measures note added to the financial statements.

DS Smith plc Monitor

DS Smith plc Annual Report 2017
CR Monitor Issue: 
2018/0208
Company covered: 
DS Smith plc
Period End: 
30 April, 2017
Report issued on 20 February 2018 covered the following practice issues:
Change
Disclosure of a post balance sheet business acquisition in a subsequent events note.
Pronouncements
Enhanced disclosure explaining the expected impact on adoption of IFRS 15 and IFRS 16.
Change
Enhanced tabular disclosure of principal risks.
Change
Additional disclosure in respect of non-GAAP performance measures.
Change
Audit report presentation enhanced by inclusion of diagrams illustrating audit scope and materiality.

Cranswick plc Monitor

Cranswick plc Annual Report 2017
CR Monitor Issue: 
2017/1205
Company covered: 
Cranswick plc
Period End: 
31 March, 2017
Report issued on 12 December 2017 covered the following practice issues:
Change
Results of business disposed disclosed in separate line on the face of the income statement as a discontinued operation.
Change
Detailed disclosure on "alternative performance measures" introduced within the financial statements.
Change
Disclosure of qualitative description of factors that make up business acquisition goodwill.
Change
Auditors identify acquisition accounting as an area of risk of material misstatement.