Telecom Plus

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.


Telecom Plus 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
Disclosure of proposed acquisition and associated risks.
Share incentive scheme charge disclosed on face of statement of comprehensive income.
Adjusted basic and diluted earnings per share disclosed, excluding share incentive scheme charge.

Telecom Plus PLC Monitor

Telecom Plus PLC Annual Report 2013
CR Monitor Issue: 
Company covered: 
Telecom Plus PLC
Period End: 
31 March 2013
Report issued on 27 September 2013 covered the following practice issues:
Revenue recognition policy extended to cover estimated usage of utilities.
Merger of audit firms impacts on external audit arrangements in light of impending recommendations on auditor rotation.
New justification given for absence of external evaluation of Board.