Financial instruments Reclassifications

Running head: CORPORATE REPORTING 1
Corporate reporting 1
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1CORPORATE REPORTING 1
Table of Contents
Introduction......................................................................................................................................2
1. Compliance with IFRS.............................................................................................................2
2. Comment on financial performance and financial health........................................................5
3. Accounting standards for financial reporting...........................................................................8
4. Significance of segmental analysis...........................................................................................9
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

2CORPORATE REPORTING 1
Introduction
Travis Perkins is largest distributor in UK for building materials for construction of
building as well as home improvement market. It operates through various segments namely
plumbing and heating, general merchanting, consumers and contracts. Various items the entity
deals with are timber, doors, joinery and windows, building materials, plumbing, gardens and
landscaping, heating, tool hire, clearance, electrical and lighting and trade offers. Purpose of the
task is conducting detailed analysis that focuses on how financial statement of the entity
demonstrates the compliance with IFRSs (Travis Perkins | Builders Merchants, Building
Supplies & Material 2020). The report will further use the analytical techniques and tools for
providing comments on the financial health as well as financial performance of the entity as
against the previous year. In addition, it will critically discuss the requirement and role for
national as well as IAS while preparing the corporate financial reporting. Finally, the report will
discuss significance of data delivered under segmental analysis of financial report and the reason
why the same disclosure is required for the entity.
1. Compliance with IFRS
IFRS 9 – Financial instruments
Reclassifications as well as adjustments on account of new impairment rules are not
reported under restated balance sheet as at 31st December 2017. However, the same has been
reported under closing balance sheet dated 31st December 2018 for the alterations in the financial
assets of the group for impairment required by IFRS 9 have been reported under opening balance
sheet as at 1st January 2018. IFRS 9 substituted provision of IAS 39 that is associated with
measurement, classification and recognition of financial asset as well as financial liabilities,

3CORPORATE REPORTING 1
impairment of the financial assets, de-recognition of the financial assets as well as hedge
accounting. Adoption of the IFRS 9 since 1st January 2018 led to changes in the accounting
policies as well as adjustments for the amounts reported under financial statements. However, for
the transitional provision of IFRS 9 the entity did no restate the comparative figures (Travis
Perkins | Builders Merchants, Building Supplies & Material 2020).
IFRS 15 – Revenue from the contracts with customers
The entity adopted IFRS 15 since 1st January 2018that resulted in alterations in the
accounting policies as well as reclassification of the recognised amounts under financial
statements. However, none of the adjustments had its effect on retained earnings of the group
and this standard does not have notable impact on the entity. Further, previously the provisions
for the customers returns were used to be presented on the net basis as the part of deferred and
accrual income. Since the adoption of IFRS 15 the same are presented on gross basis whereas the
liabilities for entire amount likely to be repaid are added under trade and other receivables
(Travis Perkins | Builders Merchants, Building Supplies & Material 2020).
IFRS 16 – Leases
IFRS 16 was released by IASB in January and the same was endorsed by EU in 2017
October. It has material impact on the entity as value for operating lease entered by the entity
will be reported in the balance sheet in future period. The entity has one project team that works
for implementing procedures as well as systems required for complying with the requirements.
Effect of adopting standard on 1st January 2019 may alter the present estimates as the lease
portfolio of the entity is changing frequently and new accounting policies are tend to alter until
the entity presents the 1st financial statement that involve date for initial application. Exemption