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 | A.G. BARR p.l.c |
|---|---|
| Balance Sheet Date | 28 January 2024 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | Deloitte LLP |
| Case Summary / Press Notice |
Recognition of retirement benefit asset and associated deferred tax liability We sought clarification of the basis of recognition of the defined benefit pension scheme asset. The company satisfactorily explained its unconditional right to a refund of the pension surplus and agreed to enhance the relevant accounting policy in future annual reports and accounts. We also asked the company to explain the basis for the measurement of the deferred tax liability associated with the retirement benefit asset. It explained how the values were determined in both the group and company accounts, including providing details of tax deductions that were received under the related asset-backed funding arrangements. The company agreed to enhance the disclosure of the deferred tax liability to explain more clearly the basis for recognising and measuring this balance in future annual reports and accounts. Rio acquisition We asked the company to explain the basis on which it concluded that the acquisition of Rio Tropical Limited constituted a business, as defined in IFRS 3, ‘Business Combinations’. The company provided a satisfactory response and agreed to enhance the disclosure of the inputs and processes acquired on acquisitions in future annual reports and accounts. |
| Entity | Associated British Foods plc |
| Balance Sheet Date | 14 September 2024 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | Ernst & Young LLP |
| Case Summary / Press Notice | N/A |
| Entity | BT Group plc |
| Balance Sheet Date | 30 September 2024 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | KPMG LLP |
| Case Summary / Press Notice |
Defined benefit pension scheme We requested further information about the company’s control assessment related to its interest in a co-investment vehicle held with the BT Pension Scheme (BTPS). The company satisfactorily explained that it does not have control of the vehicle as it is unable to use its power to affect the variable returns from it. The company agreed to clarify the related significant judgement disclosure in its 2025 annual report and accounts. We also asked the company to explain the basis on which it concluded that BTPS’s interest in the vehicle meets the definition of a plan asset, as set out in IAS 19, 'Employee Benefits’. The company provided an adequate response. |
| Entity | CEF Holdings Ltd |
| Balance Sheet Date | 30 April 2024 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | Crowe U.K. LLP |
| Case Summary / Press Notice |
Distributable profits and dividends paid We observed that the company had paid a dividend in the year ended 30 April 2024 which was in excess of the company’s opening and closing retained earnings position. We asked the company how it had complied with the requirements of section 836(2)(a) of the Companies Act 2006 to prepare interim accounts to support the dividend and what level of distributable profits were available to the company at the time the dividend was paid. The company provided interim accounts which supported the payment of the dividend. We also asked for further details of how the company had transferred its assets and liabilities to its parent subsequent to the year end, as referred to in its note of events after the reporting date, and if this had involved a distribution. The company provided the additional information requested and confirmed the transfer had not involved a distribution. |
| Entity | Central Asia Metals plc (3) |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | BDO LLP |
| Case Summary / Press Notice |
Silver streaming arrangement We questioned why silver purchases made in relation to a silver streaming arrangement were presented as a reduction in revenue rather than a cost of sale. As a result of our further inquiries, the company reconsidered its presentation and agreed to reclassify the silver purchases from revenue to cost of sales, and to restate the 2023 comparative amounts in the 2024 annual report and accounts. As the reclassification affected a primary statement, we asked the company to disclose the fact that the matter had come to its attention as a result of our enquiry. We asked how a statement referring to satisfying the silver streaming arrangement through own production related to the silver purchases referred to above. We also sought further explanation to support the company’s conclusion that the silver streaming agreement should not be accounted for as a derivative. The company explained its conclusion that the silver streaming arrangement meets the criteria for the ‘own use’ exemption to financial instrument accounting. The company agreed to enhance the disclosures around the silver streaming arrangement, including the basis on which it is fulfilled through third party purchases, and the significant judgements disclosure about the ’own use’ exemption in its 2024 annual report and accounts. Share-based payments’ classification We asked the company to clarify the basis for its conclusion that its share-based payment arrangements should be accounted for as equity-settled, in the light of recent cash settlements. After further inquiries, the company agreed to account for share-based payments as cash-settled from 1 January 2023, which the company considers to be the date at which it established a practice of cash settlement. It agreed to restate the 2023 comparative amounts in the 2024 annual report and accounts accordingly. As this change also affected the primary statements, we asked the company to disclose the fact that this matter had also come to its attention as a result of our enquiry. Earnings per share We requested further information about the calculation of the weighted average number of shares used to calculate basic and diluted EPS, and whether this was adjusted for shares held in an employee benefit trust (‘EBT’). We also observed an apparent inconsistency in the number of share options adjusted in the diluted EPS calculation. The company agreed to adjust the number of shares used to calculate basic EPS for shares held in the EBT. It will do this prospectively as it concluded the effect on comparative amounts was not material. The company satisfactorily explained the reason for the apparent inconsistency in the number of share options adjusted in the diluted EPS calculation. |
| Entity | Chapel Down Group PLC (3) |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | Crowe U.K. LLP |
| Case Summary / Press Notice |
Deferred tax in respect of share-based payments We asked the company to explain the basis on which the deferred tax on share-based payments had been calculated and presented. The company confirmed that the deferred tax credit in respect of share-based payments should have been directly recognised in equity rather than as a component of other comprehensive income. The company agreed to restate the 2023 comparative amounts in its 2024 report and accounts to reflect this, and to disclose the fact that the matter had come to its attention as a result of our enquiry. Alternative performance measures We asked the company to explain how adjusted EBITDA reconciled to the equivalent IFRS measure in the accounts, and to explain the rationale for the treatment of depreciation in determining adjusted EBITDA. The company responded satisfactorily and agreed to expand its future disclosures in this area. |
| Entity | CVS Group Plc |
| Balance Sheet Date | 30 June 2024 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | Deloitte LLP |
| Case Summary / Press Notice | N/A |
| Entity | Diageo Plc |
| Balance Sheet Date | 30 June 2024 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | PricewaterhouseCoopers LLP |
| Case Summary / Press Notice | N/A |
| Entity | Drilton Limited (3) |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | RSM UK Audit LLP |
| Case Summary / Press Notice |
Consolidated statement of cash flows We questioned the treatment of term deposits, loans granted to joint ventures and purchases of tangible assets in the company’s cash flow statement. As a result, the company agreed to make the following changes in its next annual report and accounts: To restate term deposits as cash equivalents; to restate the cash flows to the joint venture from operating to investing activities; and to include additional disclosure in its future annual report and accounts should the difference between fixed asset additions and the associated investing cash flows be considered material. Future contract losses We challenged the company’s recognition of future contract losses within both accruals and deferred income, and as a deduction to amounts recoverable on contracts. The company acknowledged that this treatment was inconsistent but explained that the contract losses deducted from amounts recoverable on contracts was immaterial. The company agreed to amend its accounting policy and to consistently disclose contract losses as provisions in its future annual report and accounts. The company also identified a number of other balances that had been misclassified as accruals and agreed to restate these, and the future contract losses, as provisions in its 2024 accounts. As the above restatements affected the primary statements, we asked the company to disclose the fact that the matters had come to its attention as result of our enquiries |
| Entity | Eagle Eye Solutions Group plc |
| Balance Sheet Date | 30 June 2024 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | RSM UK Audit LLP |
| Case Summary / Press Notice |
Current and deferred income tax We asked the company to provide information and explanations relating to the basis for recognising deferred tax assets, to apparent inconsistencies in its disclosures of current and deferred income tax, and to its presentation of deferred tax in the statement of changes in equity. The company gave a satisfactory response and agreed to enhance its disclosure of the basis for recognising deferred tax assets and of reconciling items in the reconciliation of the total tax expense to accounting profit. In closing the enquiry, we encouraged the company to consider further improvements, to ensure that users understand the factors affecting the relationship between tax expense and accounting profit. |
| Entity | Electric Guitar Plc |
| Balance Sheet Date | 31 March 2024 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Limited |
| Quarter Published | June 2025 |
| Auditor (5) | Johnsons Financial Management |
| Case Summary / Press Notice | N/A |
| Entity | E.ON Next Energy Limited |
| Balance Sheet Date | 31 December 2023 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Limited |
| Quarter Published | June 2025 |
| Auditor (5) | KPMG LLP |
| Case Summary / Press Notice |
Regulatory findings and customer compensation claims We requested information about the company’s exposure to claims from customers and any settlements from the Office of Gas and Electricity Markets (Ofgem) in connection with its conduct with customers and its accounting for, and disclosure of, such matters in accordance with IAS 37, ‘Provisions, Contingent Liabilities and Contingent Assets’. The company provided a satisfactory response which included its agreement to improve the disclosure in future annual reports and accounts by presenting amounts recognised in relation to customer compensation and redress in a separate class of provision called ‘legal and regulatory’, as well as making other enhancements to relevant disclosures required by IAS 37. |
| Entity | Ernst & Young LLP |
| Balance Sheet Date | 28 June 2024 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | BDO LLP |
| Case Summary / Press Notice | N/A |
| Entity | FD Technologies plc |
| Balance Sheet Date | 29 February 2024 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | Delotte (NI) Limited |
| Case Summary / Press Notice |
Deferred tax We asked the company to explain why certain deferred tax charges were recognised in equity. The company provided a satisfactory response. In closing the matter, we encouraged the company to enhance its disclosures in this area in future annual reports and accounts. |
| Entity | Games Workshop Group PLC (3) |
| Balance Sheet Date | 2 June 2024 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | KPMG LLP |
| Case Summary / Press Notice |
Parent company cash flow statement We asked the company for further information about the classification of cash flows relating to loans to group companies in the parent company’s statement of cash flows. The company confirmed that the loan payment should have been classified within cash flows arising from investing activities as opposed to operating activities. The company agreed to restate the comparative figures presented in the parent company cash flow statement in its next report and accounts. As the changes affected primary statements, we asked the company to disclose the fact that the matters had come to its attention as result of our enquiry. |