IAS 14 'Segment reporting'

Segment Reporting

The requirement to disclose information on operating segments has been around for a number of years, firstly under IAS 14 Segment Reporting, and currently under IFRS 8 Operating Segments which has been applicable for entities with publicly traded debt or equity instruments (or those which are about to publicly trade) since 2009.
This report looks at the operating segment disclosures in the consolidated financial statements of 20 UK listed companies selected at random.

Mediobanca - Banca di Credito Finanziario SpA Period End 30 June 2010

Mediobanca - Banca di Credito Finanziario SpA Annual Report 2010
Restatements without explanation and discrepancies in amounts compromise reliability
Italian bank Mediobanca – Banca di Credito Finanziario restates several prior year comparatives without any explanation and inconsistencies between amounts shown in the balance sheet and the notes lead to an overall lack of transparency.

Safran SA Period End 31 December 2009

Safran SA Annual Report 2009
Put option recognised as financial liability at lowest Level of fair value hierarchy
French engineering company Safran recognises as a financial liability a €125 million put option granted to the holders of a 19% minority interest, increasing total goodwill by 3.8% in a policy that will no longer be permitted under IFRS, and discloses that it is measured at Level 3 of the fair value hierarchy.

Mediobanca - Banca di Credito Finanziario SpA Period End 30 June 2009

Upbeat equity accounting muffles significant unrecognised market value losses

Italian bank Mediobanca – Banca di Credito Finanziario reclassifies two more investments under 20% as associates, increasing to €646 million unrecognised losses relative to market price that amount to 11% of closing equity.

Kier Group plc Period End 30 June 2009

Kier Group plc Annual Report 2009

Pension curtailment gain represents almost the entire profit

UK construction company Kier restricts pensionable salary increases with a resultant £24.3 million gain representing almost the entire profit.

3i Infrastructure plc Period End 31 March 2009

3i Infrastructure plc Annual Report 2009

Restatement increases comparative net operating cash outflows by 5.5%

Jersey investment company 3i Infrastructure restates without explanation its prior year cash flow statement to reclassify £31.9 million cash in transit to purchases of investments and distribution to minority interests, with net cash outflow from operating activities increasing by 5.5%.

Repsol YPF SA Period End 31 December 2008

Repsol YPF Annual Report 2008

Increasing significance of emission allowances foreseen
Spanish energy company Repsol YPF increases disclosure of emission allowances and attaches significance to approval by the European Parliament of changes to the European Emissions Trading Directive.