BHP Billiton

BHP Billiton Plc Monitor

BHP Billiton Plc Annual Report 2018
CR Monitor Issue: 
Company covered: 
BHP Billiton Plc
Period End: 
30 June, 2018
Report issued on 14 January 2019 covered the following practice issues:
Restatement of comparative income statement following classification of businesses disposed as discontinued operations.
Change in deferred tax recognised linked to reduction in US tax rate.
Presentation of a reconciliation of movements in liabilities arising from financing activities following adoption of an amendment to IAS 7 "Statement of cash flows".
Extended disclosure in respect of the impacts of new accounting standards including IFRS 9 "Financial instruments", IFRS 15 "Revenues from contracts with customers" and IFRS 16 "Leases".
Change in segmental reporting structure with restatement of comparative information.

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.

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.

Disclosure of the impacts of IFRS 16 "Leases"

IFRS 16 “Leases” will fundamentally change accounting by lessees as it requires assets previously off balance sheet under operating lease arrangements to be brought on balance sheet as is currently the case for finance leased assets. As a result on application companies will recognise both additional assets and additional liabilities. Consequently there will also be knock on effects in the income statement as operating lease charges are replaced by a depreciation charge and a finance expense. This report analyses the financial statements of a range of companies to firstly establish whether there has been any early adoption and secondly to establish what companies are disclosing in respect of IFRS 16 and its future impacts.

BHP Billiton Group. Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
Period End: 
31 December 2015
Listing Status: 
FTSE 100, Europe 350
ICB Industry Classification: 
1775 General Mining
Restatement to show results of de-merged business as discontinued operation.
Joint venture impairment reflected as exceptional item.
Exceptional items analysed by reporting segment.

Accounting for mine stripping costs: an emerging issue under IFRS

This report focuses on the accounting treatment of production stage waste removal or stripping activities in a surface mine following the implementation of IFRIC 20 “Stripping costs in the production phase of a surface mine”. It considers company disclosures in respect of the overall impacts of adoption. Areas covered are the conditions that have to be met for such costs to be capitalised and the processes undertaken by companies to determine the amounts to be capitalised and the depreciation method applied in relation to such capitalised costs. 

Joint Arrangements: An emerging issue under IFRS

This report focuses on the financial reporting by entities that have an interest in arrangements which are controlled jointly with another party, in light of the requirements of IFRS 11 “Joint arrangements”. It covers company application of the concept of joint control taking into account the guidance given by IFRS to companies to determine whether arrangements fall within the scope of IFRS 11. It further covers the review undertaken by companies based on the rights and obligations held to determine whether the joint arrangements that exist are considered joint ventures or joint operations and the subsequent accounting of such arrangements in line with the equity accounting method as per IAS 28 “Investments in associates and joint ventures” or of the entities proportionate share of assets, liabilities, revenue and expenses respectively. Finally it considers the financial and presentational impacts of IFRS 11 adoption.   

Auditor's fee disclosures

This report focuses on companies’ disclosures of the fees paid to auditors both for audit and non-audit services. It considers specifically the presentation format by which companies analyse audit services received and fees paid in their respect. 

BHP Billiton plc Monitor

BHP Billiton plc Annual Report 2012
CR Monitor Issue: 
Company covered: 
BHP Billiton plc
Period End: 
30 June 2012
Report issued on 05 December 2012 covered the following practice issues:
IFRS 10 will extend scope of full consolidation.
IFRS 11 will reduce proportionate consolidation.
Borrowings classed as current in light of Amendment to IAS 1.
Impairment loss relating to prior year acquisition recognised.
Deferred tax assets recognised to reflect change to Australian tax rules on asset recoverability.
Analysis of auditors' fees restated.