KCOM Group

IFRS 15 impact disclosures - focus on telecommunications

In our last report on IFRS 15, we looked at the disclosure of the expected impact of the standard in a randomly selected group of 20 UK listed company accounts for periods ending 31 December 2017. None of the sample of companies had early adopted IFRS 15 and only 25% of the sample anticipated the adoption to have a material impact on their next set of financial statements. 

When selecting the sample of ten for this report, we included some 31 March 2018 year-end accounts and we have only included companies in the software and mobile telecommunications industry for which the adoption of IFRS 15 is expected to have a greater impact.  The new standard sets out five core principles that preparers should following when judging how to recognise revenue from longer-term contracts. In these two industries, companies often offer customers multi-year service contracts with equipment offered for no or a low fee. Under previous rules, there were a greater number of options available to companies, whereas IFRS 15 is considerably more prescriptive, and requires companies to split the revenue from these contracts based on the performance of the contract.

This report also includes some discussion of Capita Plc, which has early adopted the standard.


KCOM Group plc Interims Monitor

Interim Financial Report
CR Interim Monitor Issue: 
Period End: 
30 September 2013
Listing Status: 
FTSE Mid 250
ICB Industry Classification: 
6535 Fixed Line Telecommunications
Revised pension accounting rules reduce profit.
Increased information on financial instruments on application of fair value disclosure rules.
Termination of contract impacts profit before tax by 7.9%.

KCOM Group plc Monitor

KCOM Group plc Annual Report 2013
CR Monitor Issue: 
Company covered: 
KCOM Group plc
Period End: 
31 March 2013
Report issued on 29 August 2013 covered the following practice issues:
Impact of impending pension rules change quantified.
Location of pension costs under impending rules disclosed.