IAS 39 'Financial instruments: recognition and measurement'

Adoption of IFRS 9 Financial Instruments

IFRS 9 Financial Instruments (IFRS 9) has replaced the existing international financial instrument standard IAS 39 Financial Instruments: Recognition and Measurement (IAS 39), for periods beginning on or after 1 January 2018.

This report looks at a selection of December 2018 - March 2019 year ends where full year disclosures in relation to the actual adoption of IFRS 9 are being made for the first time. This report covers both the impact of the adoption of IFRS 9 and what disclosures have been made in relation to the adoption.

Coca-Cola HBC AG Monitor

Coca-Cola HBC AG Annual Report 2018
CR Monitor Issue: 
2019/0615
Company covered: 
Coca-Cola HBC AG
Period End: 
31 December, 2018
Report issued on 13 June 2019 covered the following practice issues:
Pronouncements
Adopted IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments from 1 January 2018.
Pronouncements
Disclosures on expected impact of IFRS 16 extended with quantification provided.
Change
Disclosure of events after the balance sheet date.
Change
Modification of performance share plan in the current year.
Change
New sections in the auditors’ report added in respect of ‘capability of the audit in detecting irregularities, including fraud’ and for ‘going concern’.

Segro plc Monitor

Segro plc Annual Report 2018
CR Monitor Issue: 
2019/0614
Company covered: 
Segro plc
Period End: 
31 December, 2018
Report issued on 14 June 2019 covered the following practice issues:
Restatement
The segmental reporting structure has been revised.
Pronouncements
Adoption of IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers from 1 January 2018.
Pronouncements
Disclosure of expected impact from adopting amendment to IFRS 3 Business combinations from 1 January 2020.
Change
The recognition of pension buy-out costs in the income statement.
Change
A new section is added to the audit report covering the detection of irregularities including fraud.

Paddy Power Betfair plc Monitor

Paddy Power Betfair plc Annual Report 2018
CR Monitor Issue: 
2019/0613
Company covered: 
Paddy Power Betfair plc
Period End: 
31 December, 2018
Report issued on 14 June 2019 covered the following practice issues:
Pronouncements
Adoption of IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers from 1 January 2018.
Pronouncements
Expected impact of adopting IFRS 16 Leases from 1 January 2019 is quantified.
Change
Disclosure of the merger of a newly acquired and existing business.
Change
£26.5 million impairment recognised against goodwill within the US business.
Change
Gain recognised on disposal of a non-controlling interest.
Change
Disclosure of events after the balance sheet date, including an acquisition for consideration of £101 million.

AstraZeneca Plc Monitor

AstraZeneca Plc Annual Report 2018
CR Monitor Issue: 
2019/0612
Company covered: 
AstraZeneca Plc
Period End: 
31 December, 2018
Report issued on 13 June 2019 covered the following practice issues:
Pronouncements
Adoption of IFRS 9 Financial Instruments, IFRS 15 Revenue from Contracts with Customers and IFRIC 22 Foreign Currency Transactions and Advance Consideration with effect from 1 January 2018.
Pronouncements
Disclosure in respect of future impacts of adoption of IFRIC 23 Uncertainty over Income Tax Treatments and IFRS 16 Leases has been provided.
Pronouncements
Disclosure in respect of Amendments to IFRS 2 Share-based Payments.
Change
Assets held for sale are disclosed separately within the statement of financial position.
Change
The equalisation of Guaranteed Minimum Pensions for men and women results in the recognition of a past service cost.
Change
Disclosures made in respect of post balance sheet events.

Reckitt Benckiser Group Plc Monitor

Reckitt Benckiser Group Plc Annual Report 2018
CR Monitor Issue: 
2019/0611
Company covered: 
Reckitt Benckiser Group Plc
Period End: 
31 December, 2018
Report issued on 13 June 2019 covered the following practice issues:
Restatement
The segmental information has been restated to reflect changes in the presentation of reportable segments.
Pronouncements
Adoption of IFRS 9 Financial instruments with effect from 1 January 2018.
Pronouncements
Adoption of IFRS 15 Revenue from Contracts with Customers with effect from 1 January 2018.
Change
Disclosure for implementation of restructuring plan RB 2.0.
Change
Disclosure is provided on the recent High Court ruling on equal guaranteed minimum pensions.
Change
Inclusion of a new key audit matter in the auditor’s report.

Essentra plc Monitor

Essentra plc Annual Report 2018
CR Monitor Issue: 
2019/0602
Company covered: 
Essentra plc
Period End: 
31 December, 2018
Report issued on 01 June 2019 covered the following practice issues:
Restatement
The segmental information is altered to reflect a change in organisational structure including restatement of the comparative year presentation.
Pronouncements
Adoption of IFRS 15 Revenue from contracts with customers from 1 January 2018.
Pronouncements
IFRS 9 Financial Instruments adoption from 1 January 2018 results in an adjustment within equity.
Pronouncements
The expected future impact of adopting IFRS 16 Leases is quantified.
Change
The impact of equalising Guaranteed Minimum Pensions for men and women is recognised as an exceptional item.
Change
The strategic report includes extended principal risk information.

Symrise AG Monitor

Symrise AG Annual Report 2018
CR Monitor Issue: 
2019/0511
Company covered: 
Symrise AG
Period End: 
31 December, 2018
Report issued on 17 May 2019 covered the following practice issues:
Pronouncements
IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers are adopted from 1 January 2018.
Pronouncements
The expected impact of adopting IFRS 16 Leases is disclosed.
Change
The auditors’ report discusses a new key audit matter identified in the current period.
Change
The impact of hyperinflationary conditions existing in two subsidiaries is disclosed.
Change
In the pension disclosures a reconciliation is presented to show the effect of the asset ceiling on plan assets.

Provident Financial plc Monitor

Provident Financial plc Annual Report 2018
CR Monitor Issue: 
2019/0508
Company covered: 
Provident Financial plc
Period End: 
31 December, 2018
Report issued on 13 May 2019 covered the following practice issues:
Restatement
Comparative year basic and diluted loss per share figures are restated to reflect the bonus element of a rights issue.
Pronouncements
IFRS 9 Financial instruments is adopted.
Pronouncements
An accounting policy discussion of IFRS 16 Leases includes quantification as to the expected impact of adoption.
Change
A discussion of Brexit is included in the financial and capital risk management note to the accounts.

Lancashire Holdings Limited Monitor

Lancashire Holdings Limited Annual Report 2018
CR Monitor Issue: 
2019/0506
Company covered: 
Lancashire Holdings Limited
Period End: 
31 December, 2018
Report issued on 10 May 2019 covered the following practice issues:
Pronouncements
The adoption of IFRS 15 Revenue from Contracts with Customers from 1 January 2018.
Pronouncements
The expected future impact of adopting IFRS 17 Insurance Contracts, IFRS 9 Financial Instruments and IFRS 16 Leases is disclosed.
Change
Additional disclosure on alternative performance measures used in the Report.
Change
‘Brexit’ is identified as a new principal risk.