Management commentary

Cranswick plc Monitor

Cranswick plc Annual Report 2016
CR Monitor Issue: 
Company covered: 
Cranswick plc
Period End: 
31 March, 2016
Report issued on 21 November 2016 covered the following practice issues:
Post balance sheet date acquisition disclosed.
Goodwill impairment calculated based on value in use of cash-generating unit.
Enhanced auditors’ report presentation as a result of the inclusion of tables and graphs
Clarity of corporate governance disclosures enhanced through the use of graphs showing director length of tenure, expertise and sexual diversity balance.
Presentation of strategic report is changed to include identification of strategic pillars.

Eurozone: risk disclosures

This report focuses on companies’ disclosures of risks specifically considering information presented relating to the ramifications of the ongoing financial problems faced by the Eurozone as a whole and of a number of individual states within. This report focuses on the nature of the risks arising and the format of company disclosures.   

Randstad Holding NV Period End 31 December 2010

Randstad Holding NV Annual Report 2010
Choice of classification of local value-added tax charge increases pre-tax profit
Dutch recruitment agency Randstad classifies as income tax a €39.2 million tax charge arising from a component of French business tax calculated on value-added, in a treatment that leads to 12.3% increase in profit before tax and illustrates lack of comparability in the absence of specific IFRS guidance.

Euromoney Institutional Investor plc Period End 30 September 2010

Euromoney Institutional Investor Annual Report 2010
High currency sensitivity results from derivatives forward contracts with high nominal value
UK financial publisher Euromoney Institutional Investor reduces the comparative amounts of monetary assets and liabilities denominated in US dollars and increases the comparative effect on equity of a 10% change in the US dollar against sterling to almost half of the net monetary assets, but only inquiry to the company elicits an explanation.

Sportingbet plc Period End 31 July 2010

Sportingbet plc Annual Report 2010
Legal settlement costs reduce profit by 85% and amounts disclosed are in disagreement
UK online bookmaker Sportingbet recognises £22.8 million of legal settlement costs as exceptional reducing profit for the year by 85% and amounts disclosed in management commentary conflict with those disclosed in the notes.

Dechra Pharmaceuticals plc Period End 30 June 2010

Dechra Pharmaceuticals plc Annual Report 2010
Exceptional charges reduce profit by some 7%
UK veterinary products company Dechra Pharmaceuticals classifies as exceptional integration costs and impairment of intangible assets totalling £1.3 million that reduce profit by some 7%.

Wolseley plc Period End 31 July 2010

Wolseley plc Annual Report 2010
Inventory expensed corrected to include deliveries between third parties
UK building materials supplier Wolseley has changed its accounting policy to include £901 million arising from deliveries between its suppliers and customers in inventory expensed, increasing the comparative total by 9.5%, with no effect on cost of sales or profit.

Associate impaired below net asset value
UK building materials supplier Wolseley writes off the £41 million net asset value of an interest in an associate as it considers the amount may be irrecoverable, reducing profit before tax by 14%.

Smiths Group plc Period End 31 July 2010

Smiths Group plc Annual Report 2010
Amounts drawn on standby letters of credit classified as contingent liability
UK technology company Smiths reclassifies as contingent liabilities £40.6 million supported by letters of credit utilised by its pension scheme, representing 28% of the current year total and tells us how a contingent liability is involved.

Another company restates key personnel remuneration
UK technology company Smiths increases comparative short-term remuneration of key management personnel by £1 million, or 16%, to £7.2 million, and tells us why it has restated the figure.