Goodwill

Just Eat plc Monitor

Just Eat Plc Annual Report 2018
CR Monitor Issue: 
2019/0610
Company covered: 
Just Eat plc
Period End: 
31 December 2018
Report issued on 10 June 2019 covered the following practice issues:
Restatement
Changes in the income statement presentation of the share of results of associates results in a restatement of comparative figures.
Restatement
The segmental reporting structure has been revised.
Pronouncements
Adoption of IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments from 1 January 2018.
Pronouncements
Disclosure on the expected future impact of IFRIC 23 Uncertainty over Income Tax Treatments and IFRS 16 Leases.
Change
Change in cash-generating units results in the reallocation of goodwill.
Change
Detailed discussion on two new businesses acquired.

Moneysupermarket.com Group plc Monitor

Moneysupermarket.com Group plc Annual Report 2018
CR Monitor Issue: 
2019/0603
Company covered: 
Moneysupermarket.com Group plc
Period End: 
31 December, 2018
Report issued on 01 June 2019 covered the following practice issues:
Restatement
The segmental information has been restated to reflect changes in the presentation of reportable segments.
Pronouncements
IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers have been adopted from 1 January 2018.
Pronouncements
Extended disclosure for the expected future impacts of IFRS 16 Leases.
Change
Auditor’s report includes a new key audit matter and an additional statement on the going concern assumption.
Change
A detailed discussion is presented for a business acquired during the year.
Change
Discussion on reallocation of goodwill to the cash-generating units and on additional goodwill recognised after acquisition.

Bunzl plc Monitor

Bunzl plc Annual Report 2018
CR Monitor Issue: 
2019/0517
Company covered: 
Bunzl plc
Period End: 
31 December, 2018
Report issued on 27 May 2019 covered the following practice issues:
Pronouncements
IFRS 15 Revenue from Contracts with Customers is adopted on a retrospective basis from 1 January 2018.
Pronouncements
IFRS 9 Financial Instruments is adopted with effect from 1 January 2018.
Pronouncements
Adoption of an IFRIC agenda decision related to the treatment of interest and penalties linked to taxation.
Pronouncements
The expected future impact of IFRS 16 Leases is disclosed.
Change
The financial statement impact of business disposals is disclosed.
Change
The impact of equalising Guaranteed Minimum Pensions for men and women is recognised.

Koninklijke Philips NV Monitor

Koninklijke Philips NV Annual Report 2018
CR Monitor Issue: 
2019/0412
Company covered: 
Koninklijke Philips NV
Period End: 
31 December, 2018
Report issued on 16 April 2019 covered the following practice issues:
Restatement
Recognition of a change in the segmental reporting structure including restatement of the prior year comparatives.
Pronouncements
Adopted IFRS 9 Financial Instruments (IFRS 9) and IFRS 15 Revenue from contracts with customers (IFRS 15) from 1st January 2018.
Pronouncements
Disclosures included in respect of the future impact of IFRS 16 Leases effective for accounting periods starting on or after 1 January 2019.
Change
Change in allocation of goodwill to cash generating units for impairment purpose.
Change
A quantified sensitivity analysis regarding accounting estimates and judgements in respect of the fair value of contingent consideration payable has been included in the Report this year.
Change
Disclosure in respect of post-balance sheet events has been included in the report.

Intangible assets - disclosure of impairments

Businesses are currently facing a number of challenges, such as uncertainty surrounding Brexit and a sluggish economy. The retail sector in particular is experiencing a higher level of impairments (and, for some, going concern issues) as they contend with slow sales, high business rates and plenty of competition. Tougher economic conditions generally lead to increased risks of impairment, particularly for intangible assets such as goodwill. 

In the technical findings from the Financial Reporting Committee’s 2017/18 Corporate Reporting Review, published in October 2018 (FRC technical findings 2018), impairment was one area highlighted where additional information was often requested and disclosures did not always contain all the required information.

When writing this report the latest 2017 and 2018 financial statements of 20 UK listed companies were selected at random for review of the impairment-related disclosures, focussing on intangible assets. It was ensured that a variety of industries such as retail, IT services and tourism and leisure were included.

Ashtead Group plc Monitor

Ashtead Group plc Annual Report 2018
CR Monitor Issue: 
2019/0215
Company covered: 
Ashtead Group plc
Period End: 
30 April, 2018
Report issued on 26 February 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".
Restatement
Change in segmental reporting structure with restatement of comparative information.
Change
Deferred tax changes recognised following changes to US tax legislation.
Restatement
Change in allocation of goodwill to cash generating units.
Change
Extended disclosure in respect of contingent liabilities.
New
Disclosure of level of fair value hierarchy for each non-derivative financial asset or liability and key inputs employed in the valuation of Level 3 financial instruments.

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.

Renewi Plc Monitor

Renewi Plc Annual Report 2019
CR Monitor Issue: 
2019/0123
Company covered: 
Renewi Plc
Period End: 
31 March, 2018
Report issued on 31 January 2019 covered the following practice issues:
Pronouncements
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”.
Restatement
Finalisation of provisional fair values in respect of a prior year business acquisition.
Restatement
Restatement of non-controlling interest disclosures.
Change
Changes made to segmental reporting structure following integration of acquired entity.
Change
Exceptional tax credit recognised following change in Belgian tax rate.
Change
Change in allocation of goodwill to cash generating units for impairment test purposes.

DS Smith Plc Monitor

 DS Smith Plc Annual Report 2018
CR Monitor Issue: 
2019/0117
Company covered: 
DS Smith Plc
Period End: 
30 April, 2018
Report issued on 29 January 2019 covered the following practice issues:
Change
Detailed disclosure in respect of business acquisitions made during the year.
New
Recognition of biological assets linked to business acquisitions.
Change
Acquisition accounting identified as key audit matter.
Change
Alteration to reporting segments.
Pronouncements
Additional disclosure in respect of the expected impacts of new accounting standards including IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers, IFRS 16 “leases”, and IFRIC 23 “Uncertainty over income tax treatment”.
Change
Change in allocation of goodwill to cash generating units for impairment test purposes.

Dechra Pharmaceuticals plc Monitor

Dechra Pharmaceuticals plc Annual Report 2018
CR Monitor Issue: 
2019/0115
Company covered: 
Dechra Pharmaceuticals plc
Period End: 
30 June, 2018
Report issued on 22 January 2019 covered the following practice issues:
Pronouncements
Disclosure in respect of the expected impact of new accounting standards including IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers” and IFRS 16 “Leases”.
Change
Discussion of key audit matters included in the audit report including identification of a new key audit matter.
Change
Deferred tax changes recognised following changes to US tax legislation.
Change
Change in allocation of goodwill to cash generating units for impairment test purposes.
Change
Disclosure regarding remeasurement of contingent consideration.