CRR Case Summaries and Entity-specific Press Notices
The FRC publishes, on a quarterly basis, summaries of its findings from recently closed reviews that resulted in a substantive question to a company (‘Case Summaries’). In addition, it publishes the names of companies whose reviews were closed in the previous quarter without the need for a substantive question. No Case Summary is prepared for such reviews.
Case Summaries, which are available for cases closed in the quarter ending March 2021 onwards, are included in the table below. As, currently, the FRC is subject to existing legal restrictions on disclosing confidential information received from a company, the Case Summaries can only be disclosed with the company's consent. Where consent has been withheld by the company, that fact is disclosed in the table.
From March 2018 until March 2021, the FRC published the names of companies whose reviews were closed in the previous quarter but did not prepare Case Summaries. However, on an exceptional basis, specific cases may be publicised through entity-specific Press Notices, which can also be found in the table below.
The FRC’s reviews are based solely on the company’s annual report and accounts (or interim reports) and do not benefit from detailed knowledge of the company’s business or an understanding of the underlying transactions entered into. They are, however, conducted by staff of the FRC who have an understanding of the relevant legal and accounting framework. The FRC’s correspondence with the company provides no assurance that the annual report and accounts (or interim reports) are correct in all material respects; the FRC’s role is not to verify the information provided but to consider compliance with reporting requirements. The FRC’s correspondence is written on the basis that the FRC (which includes the FRC’s officers, employees and agents) accepts no liability for reliance on its letters or Case Summaries by the company or any third party, including but not limited to investors and shareholders.
Key
- Only a certain number of CRR’s reviews result in substantive questioning of the Board. Matters raised may cover questions of recognition, measurement and/or disclosure.
- CRR’s routine reviews of companies’ annual reports and accounts generally cover all parts over which the FRC has statutory powers (that is, strategic reports, directors’ reports and financial statements). Similarly, CRR’s routine reviews of companies’ interim reports will generally cover all information in that document. Limited scope reviews arise for a number of reasons, including those conducted when a company’s annual report and accounts or interim report are selected for thematic review or reviews that have been prompted by a complaint. In accordance with the FRC's Operating Procedures, for Corporate Reporting Review, CRR does not identify those companies whose reviews were prompted by a complaint.
- The FRC may ask a company to refer to its exchanges with CRR when the company makes a change to a significant aspect of its annual report and accounts or interim report in response to a review.
- Case closed after 1 January 2021 but performed under operating procedures that did not allow for the publication of Case Summaries.
- From the quarter ended June 2023, the FRC started identifying the auditor of the annual report and accounts, or the audit firm that issued a review report on the interim report, that was the subject of the CRR review. This information was also back-dated for closed cases publicised from the quarter ended September 2022. Cases marked N/A relate to those published prior to September 2022 or interim reviews that did not have a review opinion.’
Case Summaries
CRR Case Summaries and Entity-specific Press Notices (Excel version)
| Entity | Pension Insurance Corporation Group Limited |
|---|---|
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Limited |
| Quarter Published | December 2024 |
| Auditor (5) | KPMG LLP |
| Case Summary / Press Notice | N/A |
| Entity | Prudential Plc |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | Ernst & Young LLP |
| Case Summary / Press Notice | N/A |
| Entity | Quilter plc |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | PricewaterhouseCoopers LLP |
| Case Summary / Press Notice |
Parent company investments in subsidiary undertakings We sought further information about the specific factors considered to support management’s critical judgement that an aggregation of cash flows from certain investments represented the lowest level at which largely independent cash inflows were generated, when testing those investments for impairment. The company provided a satisfactory response. |
| Entity | Reach plc |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | PricewaterhouseCoopers LLP |
| Case Summary / Press Notice | N/A |
| Entity | Relx PLC |
| Balance Sheet Date | 30 June 2024 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | Ernst & Young LLP |
| Case Summary / Press Notice | N/A |
| Entity | Ricardo plc (3) |
| Balance Sheet Date | 30 June 2023 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | KPMG LLP |
| Case Summary / Press Notice |
Derivatives We asked the company to clarify whether hedging accounting was applied. The company explained that hedge accounting was not applied in the current period and agreed to review the accounting policies to make this clear. We also asked for further information about a cash outflow of £4.2m in respect of settlement of derivatives shown as financing in the cash flow statement, as we were unable to reconcile the movement in derivatives in the year, and the basis for presenting this amount within financing activities was not clear. The company provided a reconciliation of the carrying value of derivatives and explained that the amount presented in the cash flow statement was actually a non-cash movement which had been incorrectly included as a financing cash outflow. The company agreed to restate the comparative figures included in its next annual report and accounts by removing the item from financing cash flows, with an offsetting adjustment to operating cash flows. As the restatements affected a primary statement, we asked the company to disclose that the matter had come to its attention as a result of our enquiries. Impairment of non-financial assets We asked the company for further information about an impairment of non-financial assets recognised in respect of buildings. The company provided a satisfactory answer to our question. |
| Entity | Rightmove plc |
| Balance Sheet Date | 30 June 2024 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | Ernst & Young LLP |
| Case Summary / Press Notice | N/A |
| Entity | Robert Walters plc |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | BDO LLP |
| Case Summary / Press Notice | N/A |
| Entity | Rothesay Limited |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Limited |
| Quarter Published | December 2024 |
| Auditor (5) | PricewaterhouseCoopers LLP |
| Case Summary / Press Notice | N/A |
| Entity | Sabre Insurance Group plc |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | PricewaterhouseCoopers LLP |
| Case Summary / Press Notice | N/A |
| Entity | SEGRO plc |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | PricewaterhouseCoopers LLP |
| Case Summary / Press Notice | N/A |
| Entity | Serco Group plc |
| Balance Sheet Date | 30 June 2024 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | KPMG LLP |
| Case Summary / Press Notice | N/A |
| Entity | Serica Energy plc |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | Ernst & Young LLP |
| Case Summary / Press Notice |
Share premium reserve We asked the company for an explanation for the difference between the amount of share premium reserves reported by the group and parent company. The company explained that, when a new parent company was formed in 2005, there was a difference between the share capital of the new parent company and the previous parent company, which, in the group accounts, was recorded as a credit to share premium. We closed our enquiry on the basis that the company confirmed that the share capital in the parent company accounts was stated correctly. |
| Entity | Smart Metering Systems plc (3) |
| Balance Sheet Date | 31 December 2022 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | Ernst & Young LLP |
| Case Summary / Press Notice |
Uninstalled meter assets We asked the company for further information in relation to the balance sheet classification of uninstalled meter assets and the presentation of related cash flows. After further enquiries, the company agreed to account for these assets and other significant meter components as property, plant and equipment rather than as inventories, and to classify the related cash flows as investing activities. The company agreed to restate the comparative amounts in its 2023 annual report and accounts, including consequential changes to the consolidated income statement. As the change affected the primary statements, we asked the company to disclose that the matter had come to its attention as a result of our enquiry. Other cash flow presentation matters We asked the company to explain certain differences between amounts shown in the consolidated statement of cash flows and amounts reported elsewhere in the accounts. The company provided satisfactory explanations. |
| Entity | Temple Bar Investment Trust Plc |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | December 2024 |
| Auditor (5) | BDO LLP |
| Case Summary / Press Notice | N/A |