IFRS 8 'Operating segments'

Segment disclosures and the chief operating decision maker under IFRS

This report sets out our findings in respect of a review of the IFRS segment disclosures of 25 UK listed companies, drawn from a range of different industries, as covered by IFRS 8 “Operating segments”. We consider a number of points including disclosures in respect of the chief operating decision maker, the factors used to identify reportable segments and whether there has been aggregation of operating segments and income statement and statement of financial position information reported by segment.

Givaudan SA Monitor

Givaudan SA Annual Report 2016
CR Monitor Issue: 
2017/00505
Company covered: 
Givaudan SA
Period End: 
31 December, 2016
Report issued on 09 May 2017 covered the following practice issues:
Pronouncements
Early adoption of IFRS 9 results in a profit reduction following reclassification of available for sale investments as at fair value through profit and loss.
Pronouncements
Disclosure of key audit matters in the auditors report.
Restatement
Segment information restated to show separately by segment property plant and equipment and intangible assets obtained as a result of business acquisitions.

Bayer AG Monitor

Bayer AG Annual Report 2016
CR Monitor Issue: 
2017/0502
Company covered: 
Bayer AG
Period End: 
31 December, 2016
Report issued on 2 May 2017 covered the following practice issues:
Change
Change in reporting segments following the introduction of new organisational structure.
Change
Results of discontinued operations analysed by business.
Pronouncements
Introduction of discussion of key audit matters in the auditor’s report.

Sports Direct International plc Monitor

Sports Direct International plc Annual Report 2016
CR Monitor Issue: 
2017/0412
Company covered: 
Sports Direct International plc
Period End: 
24 April, 2016
Report issued on 20 January 2017 covered the following practice issues:
Divergence
Lack of clarity as to the calculation of goodwill in a step acquisition.
Change
Improved disclosures of foreign currency contracts by type.
Change
Disclosure of non-current segment assets by geographical areas introduced.
Change
Identification of related party disclosures as a new audit risk area.
Change
Disclosures of deferred tax assets and liabilities by individual temporary difference further disaggregated.

Imagination Technologies Group plc Monitor

Imagination Technologies Group plc Annual Report 2016
CR Monitor Issue: 
2017/0410
Company covered: 
Imagination Technologies Group plc
Period End: 
30 April, 2016
Report issued on 25 April 2017 covered the following practice issues:
Change
Breach of a covenant of a borrowing facility results in re-classification of a liability as current.
Change
Discussion of going concern assumption includes reference to covenant breach.
Change
Disclosure of principal risks extended to include discussion of covenant breach.
Change
Income statement format altered with "separately disclosable items" highlighted in a separate column.
Restatement
Research and development disclosure restated following a more appropriate cost allocation.
New
Separate disclosure of movements in provisions introduced.

Stagecoach Group plc Monitor

Stagecoach Group plc Annual Report 2016
CR Monitor Issue: 
2017/0411
Company covered: 
Stagecoach Group plc
Period End: 
30 April, 2016
Report issued on 25 April 2017 covered the following practice issues:
Change
Joint venture impaired in full.
Change
Early redemption premium reflected as exceptional finance cost.
Change
Impairment of interest in joint venture, onerous contract review and exceptional items identified as areas of audit focus.
Restatement
New reporting segment identified in line with IFRS 8 quantitative thresholds.
Pronouncements
Change in Companies Act 2006 requirements results in disclosure of full list of subsidiaries.
Change
Table showing movement in franchise adjustment introduced to pensions note.

Novartis AG Monitor

Novartis AG Annual Report 2016
CR Monitor Issue: 
2017/0402
Company covered: 
Novartis AG
Period End: 
31 December, 2016
Report issued on 04 April 2017 covered the following practice issues:
Change
Change in segment disclosure to reflect changes in organisational structure.
Pronouncements
Introduction to audit report of a table disclosing key audit matters.
Change
Presentation of additional income statement, statement of changes in equity and cash flow statement comparative information.

Mitchells & Butlers plc Monitor

Mitchells & Butlers plc Annual Report 2016
CR Monitor Issue: 
2017/0310
Company covered: 
Mitchells & Butlers plc
Period End: 
24 September, 2016
Report issued on 28 March 2017 covered the following practice issues:
Change
Identification of “onerous lease provisions” as a new risk area of possible material misstatement by the auditors.
Change
Auditors' extend discussion of materiality by including a graphical presentation.
Change
Adoption of amendment to IAS 19 in respect of accounting for service linked employee contributions.
Pronouncements
Discussion of changes to IFRS 8 and IAS 24 as a result of annual IFRS improvements included.
Change
Tabular disclosure of principal risks includes "food supply chain safety" as a new principal risk.
Restatement
Financial liabilities restated to include accrued charges without explanation.

Tate & Lyle PLC Monitor

Tate & Lyle PLC Annual Report 2016
CR Monitor Issue: 
2017/03008
Company covered: 
Tate & Lyle PLC
Period End: 
31 March, 2016
Report issued on 21 March 2017 covered the following practice issues:
New
Control of previous joint venture achieved through stepped acquisition.
Restatement
Segment information restated to show joint ventures and associates on an equity accounting basis.
Change
Change in impairment valuation technique from value-in-use to fair value less cost of disposal for goodwill acquired last year.
Change
Table introduced showing cash flow impacts from individual exceptional items.
Change
Narrative description of key factors impacting the sustainability of its effective tax rate presented.
Change
Additional disclosures on accounting estimates and judgement relating to inventories and taxation presented.

Fenner PLC Monitor

Fenner PLC Annual Report 2016
CR Monitor Issue: 
2017/0309
Company covered: 
Fenner PLC
Period End: 
31 August, 2016
Report issued on 21 March 2017 covered the following practice issues:
Pronouncements
Change in accounting policy in respect of offsetting cash pooling arrangements following guidance from the IFRS Interpretations Committee.
New
Disclosure of post balance sheet disposal of a wholly owned subsidiary.
Change
Disclosure of extended information on segment assets and liabilities.
Restatement
Finalisation of provisional fair values attributed to assets and liabilities in respect of a business acquired last year.