Investments

Fair value measurement information under IFRS

IFRS 13 “Fair value measurement” sets out a single consistent framework for measuring fair value within IFRS financial statements and outlines a standardised set of disclosures in respect of fair value measurements. IFRS 13 has been mandatory now for some years, with application being required for annual reporting periods beginning on or after 1 January 2013. This report sets out the results of how requirements of the standard have been put into practice, both in terms of measurement and disclosure, in the consolidated financial statements of 139 large public limited companies with year ends between 31 March 2016 and 1 April 2017. It is not an exhaustive study of all aspects of IFRS 13 application and its conclusions are limited to our findings in respect of the areas analysed within the financial statements reviewed.

Investment entities exemption to consolidation: an emerging issue under IFRS

This report looks at the application of the Investment entities exemption to the consolidation requirements of IFRS 10 "Consolidated financial statements". We examine the scope of the exemption, related disclosures and the principal effects on the primary statements.

JPMorgan Emerging Markets Investment Trust plc Period End 30 June 2010

JPMorgan Emerging Markets Investment Trust plc Annual Report 2010
Diluted earnings per share measure presented following issue of Subscription shares
UK investment trust JPMorgan Emerging Markets shows earning per share diluted by 2% following issue of Subscription shares last year. 

Intesa Sanpaolo SpA Period End 31 December 2009

Intesa Sanpaolo SpA Annual Report 2009
Fair valuing residual interests in previous associate and joint venture following partial disposals boosts profit
Italian bank Intesa Sanpaolo makes partial disposals of investments in companies previously accounted for as an associate and joint venture that result in loss of significant influence and joint control and fair values the residual interests thus increasing profit from continuing operations by 5.5%.

Prior year change to criteria for impairing investments reversed
Italian bank Intesa Sanpaolo reverses a prior year change to its procedure for impairing financial assets and redefines a “prolonged” decline in fair value as 24 rather than 12 months thus demonstrating a lack of consistency.

Snam Rete Gas SpA Period End 31 December 2009

Snam Rete Gas SpA Annual Report 2009
Purchase method not applied to acquisitions
Italian gas provider Snam Rete Gas does not apply the purchase method to acquisition of two companies from its parent Eni as it falls out of the scope of IFRS and accounts for the excess of consideration over book values of net assets acquired as a reduction in equity which reduces by 24%.

3i Group plc Period End 31 March 2009

3i Group plc Annual Report 2009

Change in fair value measurement basis contributes 30% of loss

UK financial company 3i changes its method of measuring the fair value of recently acquired unquoted investments from cost less provisions to a market adjustment basis that leads to a £584 million reduction in value that contributes 30% of loss before tax.


Volatility associated with newly issued bonds mitigated by hedge arrangements

UK financial company 3i uses call spread overlays to reduce volatility associated with a £430 million issue of cash-settled bonds.

3i Group plc Period End 31 March 2009

3i Group plc Annual Report 2009

Change in fair value measurement basis contributes 30% of loss

UK financial company 3i changes its method of measuring the fair value of recently acquired unquoted investments from cost less provisions to a market adjustment basis that leads to a £584 million reduction in value that contributes 30% of loss before tax.


Volatility associated with newly issued bonds mitigated by hedge arrangements

UK financial company 3i uses call spread overlays to reduce volatility associated with a £430 million issue of cash-settled bonds.