Biological assets

Pernod Ricard SA Monitor

Pernod Ricard plc Annual Report 2017
CR Monitor Issue: 
Company covered: 
Pernod Ricard SA
Period End: 
30 June, 2017
Report issued on 19 December 2017 covered the following practice issues:
Audit report enhanced by inclusion of disclosure on key audit matters.
Change in accounting policy results in bearer plants being accounted for as property plant and equipment rather than biological assets.
Introduction of tabular breakdown of fees paid to auditors.

Fair value measurement information under IFRS

IFRS 13 “Fair value measurement” sets out a single consistent framework for measuring fair value within IFRS financial statements and outlines a standardised set of disclosures in respect of fair value measurements. IFRS 13 has been mandatory now for some years, with application being required for annual reporting periods beginning on or after 1 January 2013. This report sets out the results of how requirements of the standard have been put into practice, both in terms of measurement and disclosure, in the consolidated financial statements of 139 large public limited companies with year ends between 31 March 2016 and 1 April 2017. It is not an exhaustive study of all aspects of IFRS 13 application and its conclusions are limited to our findings in respect of the areas analysed within the financial statements reviewed.

Fair value measurement disclosures - other assets: an emerging issue under IFRS

This report surveys fair value measurement disclosures on assets other than financial instruments, investment property and bearer plants.  Our sample covers biological assets, land and buildings, non-financial assets held in defined benefit pension schemes and cash-generating units whose recoverable amount is calculated using fair value less costs to sell. We note a predominance of classification at Level 3, indicating use of unobservable inputs.

Bearer plants: an emerging issue under IFRS

This report analyses corporate disclosures on the expected or actual effects of Agriculture: Bearer plants (Amendments to IAS 16 and IAS 41), issued in June 2014, including one case of early adoption and four pre-adoption disclosures.

Vallourec SA Period End 31 December 2009

Vallourec SA Annual Report 2009
Illiquid debt excluded from cash balances in correction of error
French engineering company Vallourec restates its cash flow statements, increasing opening cash by €121 million, or 31.5%, to €504 million, with effects on comparative exchange differences and cash flows from financing activities.

Impending IFRS leaves open initial valuation policy on minority interests
French engineering company Vallourec adopts early two impending IFRS Standards and states that it will decide on a case by case basis its policy on the valuation of minority interests whilst adopting a ‘partial goodwill’ method for a current year acquisition.

‘Defensive synergies’ identified as an element of goodwill
French engineering company Vallourec identifies ‘defensive and commercial synergies’ as the primary element of €91.4 million goodwill recognised in the year and tells us what it understands by ‘defensive synergy’.

Holmen AB Period End 31 December 2009

Holmen AB Annual Report 2009
Liquidity disclosures significantly at odds with IFRS
Swedish paper manufacturer Holmen discloses explicitly that it includes only carrying amounts and not undiscounted cash flows in its maturity analysis of SEK5.8 billion financial liabilities, in a presentation that differs from that of other companies and conflicts with IFRS.

Svenska Cellulosa Aktiebolaget SCA (PUBL) Period End 31 December 2008

Svenska Cellulosa Aktiebolaget Annual Report 2008

Sales and employee numbers disclosed by country in accounts
Swedish paper manufacturer Svenska Cellulosa Aktiebolaget includes in its audited accounts disclosure of its activities by country, including net sales, average employee numbers, percentage of women employees and salaries.

Associated British Foods plc Period End 15 September 2007

Associated British Foods Annual Report 2007

A badly timed change in health & safety disclosures

UK food producer Associated British Foods reports six fatalities amongst its workforce in a newly acquired business, but excludes the information from its annual report.

No consensus on financial instruments disclosure formats

UK food producer Associated British Foods changes the format of its financial instruments disclosures and relocates information on the risks they are used to manage outside the audited accounts.