IAS 11 'Construction contracts'

Kier group plc Monitor

Kier group plc Annual Report 2018
CR Monitor Issue: 
2018/1206
Company covered: 
Kier group plc
Period End: 
30 June, 2018
Report issued on 11 December 2018 covered the following practice issues:
Change
Detailed disclosure in respect of business acquisitions made during the year.
Pronouncements
Extended disclosure in respect of the impact of the new accounting standards including IFRS 9 “Financial instruments”, IFRS 15 “Revenue from contracts with customers” and IFRS 16 "leases".
Restatement
Restatement of prior year cash flow and income statement to correct prior year error.
Change
Discussion of new key audit matter included in the audit report.
Change
Reclassification of amounts in respect of cash flow hedging instruments.
Change
Extended disclosure of principal risks including identification of new risk factors.

Clarkson Plc Monitor

Clarkson Plc Annual report 2017
CR Monitor Issue: 
2018/1104
Company covered: 
Clarkson Plc
Period End: 
31 December, 2017
Report issued on 06 November 2018 covered the following practice issues:
Pronouncements
Impact disclosure added in respect of IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers" and IFRS 16 "Leases".
Change
Disclosure added in respect of Key Audit Matter.
Change
Disclosure added in respect of pension scheme surplus.

John Wood Group PLC Monitor

John Wood Group PLC Annual Report 2017
CR Monitor Issue: 
2018/1016
Company covered: 
John Wood Group PLC
Period End: 
31 December, 2017
Report issued on 23 October 2018 covered the following practice issues:
Change
Discussion of key audit matters included in audit report.
Change
Separate sections outlining director and auditor responsibilities included in auditors' report.
Change
Extended disclosure on revenue recognition.
Pronouncements
Extended disclosure in respect of the impacts of new accounting standards including IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers", and IFRS 16 "Leases".
Restatement
Changes made to internal segmental reporting structure.
Change
Detailed disclosure in respect of intangible assets and goodwill recognised in respect of businesses acquired.

SIG plc Monitor

SIG plc Annual Report 2017
CR Monitor Issue: 
2018/1017
Company covered: 
SIG plc
Period End: 
31 December, 2017
Report issued on 23 October 2018 covered the following practice issues:
Change
Discussion of key audit matters included in audit report.
Change
Separate sections outlining director and auditor responsibilities included in auditors' report.
Pronouncements
Extended disclosure in respect of the impacts of new accounting standards including IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers", and IFRS 16 "Leases".
Restatement
Recognition of prior year adjustment to correct historical overstatement of profits.
Change
Reclassification of exchange difference to profit or loss linked to disposal of foreign operations.
Change
Extended disclosure of non-IFRS performance measures.

Balfour Beatty plc Monitor

Balfour Beatty plc Annual Report 2017
CR Monitor Issue: 
2018/1011
Company covered: 
Balfour Beatty plc
Period End: 
31 December, 2017
Report issued on 16 October 2018 covered the following practice issues:
Change
Discussion of key audit matters included in audit report.
Change
Separate sections outlining director and auditor responsibilities included in auditors' report.
Pronouncements
Extended disclosure in respect of the impacts of new accounting standards including IFRS 9 "Financial instruments" and IFRS 15 "Revenue from contracts with customers".
Restatement
Restatement of comparative income statement following classification of businesses disposed as discontinued operations.
Change
Changes in pensions discount rate calculation methodology results in recognition of actuarial gain.
Change
Recognition of adjusting post-balance sheet event linked to liquidation of Carillion.

Bovis Homes Group plc Monitor

Bovis Homes Group plc Annual Report 2017
CR Monitor Issue: 
2018/1007
Company covered: 
Bovis Homes Group plc
Period End: 
31 December, 2017
Report issued on 09 October 2018 covered the following practice issues:
Change
Discussion of key audit matters included in audit report.
Change
Separate sections outlining director and auditor responsibilities included in auditors' report.
Pronouncements
Extended disclosure in respect of the impacts of new accounting standards including IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers", and IFRS 16 "Leases".
Restatement
Change in classification of costs leads to prior year adjustment to comparatives.
Change
Exceptional items highlighted within a separate line item on the face of the income statement.
Change
Inclusion of a table disclosing a maturity analysis of operating lease payment commitments.

Computacenter Plc Monitor

Computacenter Plc Annual Report 2017
CR Monitor Issue: 
2018/1008
Company covered: 
Computacenter Plc
Period End: 
31 December, 2017
Report issued on 09 October 2018 covered the following practice issues:
Pronouncements
Extended disclosure in respect of the impacts of IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers" and IFRS 16 "Leases".
Change
Changes made in internal segmental reporting structure.
Change
Discussion of key audit matters included within auditors report.

Hikma Pharmaceuticals PLC Monitor

Hikma Pharmaceuticals PLC Annual Report 2017
CR Monitor Issue: 
2018/0918
Company covered: 
Hikma Pharmaceuticals PLC
Period End: 
31 December, 2017
Report issued on 24 September 2018 covered the following practice issues:
Change
Discussion of key audit matters included in audit report.
Change
Separate director and auditor responsibility sections included in audit report.
Pronouncements
Extended disclosure regarding the future impacts of IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers”.
Change
Adoption of new disclosure format in respect of the other comprehensive income statement
Change
Recognition of significant impairment following testing of goodwill for impairment.
Change
Disclosure of impact of changes in US tax laws.

IFRS 15 impact disclosures - focus on telecommunications

In our last report on IFRS 15, we looked at the disclosure of the expected impact of the standard in a randomly selected group of 20 UK listed company accounts for periods ending 31 December 2017. None of the sample of companies had early adopted IFRS 15 and only 25% of the sample anticipated the adoption to have a material impact on their next set of financial statements. 

When selecting the sample of ten for this report, we included some 31 March 2018 year-end accounts and we have only included companies in the software and mobile telecommunications industry for which the adoption of IFRS 15 is expected to have a greater impact.  The new standard sets out five core principles that preparers should following when judging how to recognise revenue from longer-term contracts. In these two industries, companies often offer customers multi-year service contracts with equipment offered for no or a low fee. Under previous rules, there were a greater number of options available to companies, whereas IFRS 15 is considerably more prescriptive, and requires companies to split the revenue from these contracts based on the performance of the contract.

This report also includes some discussion of Capita Plc, which has early adopted the standard.

 

Croda International Plc Monitor

Croda International Plc Annual Report 2017
CR Monitor Issue: 
2018/0908
Company covered: 
Croda International Plc
Period End: 
31 December, 2017
Report issued on 10 September 2018 covered the following practice issues:
Pronouncements
Extended disclosure in respect of the impacts of new accounting standards including IFRS 9 "Financial instruments", IFRS 15 "Revenues from contracts with customers" and IFRS 16 "Leases".
Change
Detailed disclosure in respect of business combination during the year.
Change
Change in segmental disclosure following reclassification between segments.