Taxation

Prudential plc Monitor

Prudential plc Annual Report 2016
CR Monitor Issue: 
2017/0912
Company covered: 
Prudential plc
Period End: 
31 December, 2016
Report issued on 26 September 2017 covered the following practice issues:
Pronouncements
Narrative disclosure of impacts of new standards not yet adopted includes IFRS 16 "Leases" and amendments to IFRS 4 "Insurance contracts" and IAS 12 "Income taxes"
Change
Format of statement of financial position altered by exclusion of sub-totals and headings.
Change
Disclosure of critical accounting policies, estimates and judgements enhanced by use of a tabular format.
Change
Provision recognised in respect of sale of annuities following agreement with Financial Conduct Authority.
Change
Disclosure of relationship between tax expense and accounting profit enhanced by inclusion of additional narrative explanation in addition to the presentation of a reconciliation.
Change
Accruals and deferred income included in financial liability contractual maturity analysis.

Aggreko Plc Monitor

Aggreko Plc Annual Report 2016
CR Monitor Issue: 
2017/0909
Company covered: 
Aggreko Plc
Period End: 
31 December, 2016
Report issued on 19 September 2017 covered the following practice issues:
Restatement
Change in contract organisational management structure leads to restatement of segment disclosures.
Change
Segment disclosures expanded to include geographic breakdown of revenue and non-current assets.
Change
Change in depreciation life of tangible fixed asset accounted for prospectively.
Pronouncements
Expanded disclosure of future impending impacts of new standard IFRS 15 "Revenue from contracts with customers" without quantification.
Change
Auditors discussion of audit scope enhanced by inclusion of pie charts.
Change
Sensitivity analysis included in discussion of area of significant judgement and estimate in relation to taxation.

Spirax-Sarco Engineering plc Monitor

Spirax-Sarco Engineering plc Annual Report 2016
CR Monitor Issue: 
2017/0604
Company covered: 
Spirax-Sarco Engineering plc
Period End: 
31 December, 2016
Report issued on 13 June 2017 covered the following practice issues:
New
Introduction of a new note to the financial statements on “Alternative Performance Measures”.
Change
Proposed changes to directors remuneration policy outlined
Change
Measure of profit used in reconciliation of accounting profit to tax expense altered.

Unite Group plc Monitor

Unite Group plc Annual Report 2016
CR Monitor Issue: 
2017/0601
Company covered: 
Unite Group plc
Period End: 
31 December, 2016
Report issued on 6 June 2017 covered the following practice issues:
Change
Reversal of deferred tax liability following decision to convert into a Real Estate Investment Trust.
New
Brexit identified as principal risk.
Change
Separate disclosures of tax for each line item of other comprehensive income.

Diageo plc Monitor

Diageo plc Annual Report 2016
CR Monitor Issue: 
2016/0515
Company covered: 
Diageo plc
Period End: 
30 June, 2016
Report issued on 30 December 2016 covered the following practice issues:
Change
Risks of material misstatement now described as areas of audit focus.
Change
Tabular disclosure of principal risks extended to include new risk factors in respect of International tax and Data privacy.
Change
Presentation of reconciliation of accounting profit to tax expense enhanced through extra dis-aggregation.
Change
Tabular presentation of sensitivity of carrying value of CGU’s to changes in key assumptions.
Change
Change in accounting policy in respect of cash pooling balances in line with IFRIC guidance.

Smith & Nephew plc Monitor

Smith & Nephew plc Annual Report 2017
CR Monitor Issue: 
2017/0509
Company covered: 
Smith & Nephew plc
Period End: 
31 December, 2016
Report issued on 15 May 2017 covered the following practice issues:
Change
Format of reconciliation showing relationship between tax expense and accounting profit altered.
Change
Proposed changes in remuneration policy including introduction of new performance measure and shareholding requirements.

Beazley plc Monitor

Beazley plc Annual Report 2016
CR Monitor Issue: 
2017/0506
Company covered: 
Beazley plc
Period End: 
31 December, 2016
Report issued on 9 May 2017 covered the following practice issues:
Change
Application of reverse acquisition accounting principles when establishing new holding company.
Change
Presentation of the auditors’ report enhanced by the introducing of an overview and graphical representations.
Change
Format of reconciliation showing relationship between tax expense and accounting profit altered.

BT Group plc Monitor

BT Group plc Annual Report 2016
CR Monitor Issue: 
2017/0403
Company covered: 
BT Group plc
Period End: 
31 March, 2016
Report issued on 04 April 2017 covered the following practice issues:
Change
Business combination disclosures include detailed goodwill explanation and fair value information.
Change
New mobile reporting segment identified following business combination.
Change
Commissions paid to dealers identified as an area of audit focus.
Change
Disclosure of critical accounting estimates and judgements extended.
Pronouncements
Detailed disclosure on the future impacts of IFRS 15.
Change
Extended disclosure of inventory information including disaggregation.

QinetiQ Group plc Monitor

QinetiQ Group plc Annual Report 2016
CR Monitor Issue: 
2017/0209
Company covered: 
QinetiQ Group plc
Period End: 
31 March, 2016
Report issued on 20 February 2017 covered the following practice issues:
Pronouncements
Explanation of transitional methods in respect of new revenue standard.
Change
Change in policy in respect of research and development tax credit.
Change
Auditors identify other payables, provisions and contingent liabilities as an area of risk of material misstatement.
Change
‘Business transformation’ identified as a principal risk.

Informa PLC Monitor

Informa PLC Annual Report 2015
CR Monitor Issue: 
2016/1208
Company covered: 
Informa PLC
Period End: 
31 December, 2015
Report issued on 19 December 2016 covered the following practice issues:
Restatement
Finalisation of provisional acquisition accounting results in recognition of separate intangible assets.
New
Risk management framework disclosed.
Change
Operating profit/loss before and after share of results of joint venture disclosed separately on the face of the income statement.
Restatement
Cash flow statement restated following the reclassification of borrowing fees paid from operating activities to financing activities.
Change
Additional disclosure of intangible asset useful lives and capitalisation criteria of product development expenditure.
Change
Current tax charge analysed by geographic location.