Associated British Foods

Risk and viability in the strategic report

In light of recent high-profile collapses such as Carillion, the reporting by companies of risks and long-term viability is once again in the spotlight. Investors and other stakeholders expect detailed, specific information in the annual report which clearly sets out the key risks facing the company and the potential impact of these risks on the company’s longer-term viability. This report analyses the consolidated financial statements of 20 UK listed companies to assess the quality of risk and viability reporting in the annual report.

Associated British Foods plc Monitor

Associated British Foods plc Annual Report 2017
CR Monitor Issue: 
Company covered: 
Associated British Foods plc
Period End: 
16 September, 2017
Report issued on 23 January 2018 covered the following practice issues:
Change in length of reporting period results in lack of comparability.
Aggregate information disclosed in respect of business combinations.
Disposal gain on sale of two businesses previously classified as held for sale separately highlighted on the face of the income statement.
Tabular disclosure of principal risks includes new risk factor in respect of "Socio-political uncertainty".
Key audit matters section included in the auditors' report.

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.

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.

Share-based payments under IFRS disclosure of the extent of arrangements and valuation

This report examines company disclosures in respect of share-based payment arrangements. It considers specifically disclosures in relation to the extent of such arrangements and the valuation of instruments granted. In relation to the valuation of share options the report considers the valuation methods applied by the sample companies.  

Share-based Payment Arrangements under IFRS disclosure of nature and impact

This report examines company disclosures in respect of share-based payment arrangements. It considers specifically disclosures in relation to the nature of such arrangements and the impacts on profit or loss during the period. The report will also look at the overall significance of share-based payments by considering total share-based payment expense as a percentage of profit after tax, the length of disclosure in the financial statements and the number of share-based payment schemes that companies have.

Associated British Foods plc Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
Period End: 
01 March 2014
ICB Industry Classification: 
3577 Food Products
Elimination of reserve for retirement benefit scheme costs reduces net scheme liability.
Increase to provision for compensation after building collapse.

Other comprehensive income under IFRS

This report, based on an examination of the IFRS financial statements of 30 large global listed companies, analyses the presentation of components of other comprehensive income. Included is an examination of whether companies disclose each component classified by nature. Considered also is the disclosure of related tax impacts, reclassifications to profit or loss and the impact of other comprehensive income items on equity components.