IAS 23 'Borrowing costs'

SES SA Monitor

SES SA Annual Report 2017
CR Monitor Issue: 
2018/1019
Company covered: 
SES SA Annual Report 2017
Period End: 
31 December, 2017
Report issued on 23 October 2018 covered the following practice issues:
Pronouncements
Extended disclosure in respect of the future impacts of IFRS 9 "Financial instruments", IFRS 15 "Revenue from contracts with customers" and IFRS 16 "Leases".
Change
Discussion of key audit matters included in audit report.
Restatement
Recognition of prior year adjustment to correct accounting error.
Change
Change in segmental reporting
Change
Detailed disclosure of post balance sheet events.
Change
Change in deferred tax recognised linked to reduction in US tax rate.

Novozymes A/S Monitor

Novozymes A/S Annual Report 2016
CR Monitor Issue: 
2017/0709
Company covered: 
Novozymes A/S
Period End: 
31 December, 2016
Report issued on 18 July 2017 covered the following practice issues:
Pronouncements
Introduction of new section "key audit matters" in auditors' report as a result of change in audit standards.
Change
Allocation of goodwill to cash generating units for impairment test purposes changed.
Change
Breakdown of key management remuneration includes "severance costs"
Change
New principal risk factor added in respect of "Delay of BioAg commercialisation"
Pronouncements
Extended discussion on the impacts of new standards including IFRS 9 and IFRS 16.
Change
Goodwill on acquisition of business attributed to synergy benefits.

Vestas Wind Systems A/S Period End 31 December 2010

Vestas Wind Systems A/S Annual Report 2010
Change in revenue recognition policy significantly reduces prior year profit and equity
Danish wind turbine manufacturer Vestas Wind Systems changes its policies to delay the timing of recognising revenue from supply-and-installation projects and to record warranty provisions at an earlier time and the resultant restatements of prior year comparatives reduce pre-tax profit by 75% and equity by 24%.

Restructuring costs reduce profit by 40%
Danish wind turbine manufacturer Vestas Wind Systems records €158 million costs on a restructuring, mainly relating to impairments and staff costs, and reports them as a separate line item titled “one-off costs”.

BT Group plc Period End 31 March 2010

BT Group plc Annual Report 2010
Third party concerns revealed, as pensions deficit drives company into negative equity
UK telecoms company BT’s pensions deficit before deferred tax has increased to £7.9 billion in the year, as the company publishes additional detail on the calculation of liabilities and notes the “substantial” concerns of the Pensions Regulator as it moves into a £2.6 billion net liabilities position.

Non-executives included in key management personnel in correction of error
UK telecoms company BT restates its accounts to include its Chairman and non-executive directors in its disclosures on key management personnel, increasing comparative salaries and short-term benefits of these personnel by £1.6 million, or 23.5%, to £8.4 million.

Casino, Guichard-Perrachon SA Period End 31 December 2009

Casino, Guichard-Perrachon SA Annual Report 2009
Recognition of gain on dividend in specie increases profit by 20.2%
French retailer Casino, Guichard-Perrachon distributes shares in a subsidiary without losing control and recognises a €139 million gain in the income statement that increases pre-tax profit by 20.2%, noting that impending revisions to IFRS will not permit the current treatment.

Gap emerges in IFRS over accounting treatment of new French tax regime
French retailer Casino, Guichard-Perrachon discloses that it intends to account for elements of a new tax based on value added under IAS 12 “Income taxes” with effects on the income statement and deferred tax, as guidance by the French Accounting Standards Authority permits varying treatments.

Swedbank AB Period End 31 December 2009

Swedbank AB Annual Report 2009
Large restatement of liquidity disclosures lacks explanation
Swedish bank Swedbank changes the maturities of SEK1.3 trillion comparative loans to the public, leading to a more than fourfold increase in comparative financial assets with maturities over ten years, but offers no explanation whilst misleadingly describing the carrying amounts of financial liabilities as “undiscounted cash flows”.