IAS 20 'Accounting for government grants and disclosure of government assistance'

Severn Trent Plc Monitor

Severn Trent Plc Annual Report 2016
CR Monitor Issue: 
2016/1005
Company covered: 
Severn Trent Plc
Period End: 
31 March, 2016
Report issued on 10 October 2016 covered the following practice issues:
Restatement
Grant contributions received in respect of infrastructure assets treated as deferred income rather than deducted from value of asset.
Change
Reporting segments redefined but prior year comparative information is not available.
Change
Maturity analysis of gross obligation under finance lease is disclosed separately.

Ricardo plc Period End 30 June 2007

Ricardo Annual Report 2007

Government grants excluded from revenue

UK automotive consultancy Ricardo relocates £1.1 million income from government grants, representing 9% of profit, from revenue to cost of sales. This brings to light non-compliance with IFRS disclosure requirements in the previous year.


Little to fear from updated mortality tables

UK automotive consultancy Ricardo discloses that it has changed the mortality tables it uses to quantify its pension deficit to 2000 tables, but with little effect.

International Power plc Period End 31 December 2005

Hybrid policy for recognising emission allowances
UK utilities company International Power recognises emission allowances as intangible assets and deducts a corresponding grant resulting in a net nil balance. However it recognises the allowances and grant in income in a way that does not follow IAS 20.