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 | 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. |
| Entity | Global Media & Entertainment Limited |
| Balance Sheet Date | 31 March 2024 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | PricewaterhouseCoopers LLP |
| Case Summary / Press Notice |
Parent company accounts: impairment of investment in subsidiaries We asked for further details of the impairment review undertaken in accordance with IAS 36, ‘Impairment of Assets’, to support the carrying value of the parent company’s investments in subsidiaries. The company provided a satisfactory response and agreed to clarify its disclosures in this area. |
| Entity | Grainger Plc |
| Balance Sheet Date | 30 September 2024 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | KPMG LLP |
| Case Summary / Press Notice | N/A |
| Entity | Imperial Brands PLC |
| Balance Sheet Date | 30 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 | John Graham Holdings Limited |
| Balance Sheet Date | 31 March 2024 |
| Exchange of Substantive Letters (1) | Yes |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | Ernst & Young LLP |
| Case Summary / Press Notice |
Joint venture We asked the company to explain the accounting treatment adopted for an interest in a joint venture. The company provided a satisfactory response and agreed to enhance the disclosure of the nature of the relationship with the joint venture, including the basis on which turnover is recognised under subcontract agreements. Turnover analysis We asked the company to clarify the basis on which disclosure of turnover by class of business was considered to be seriously prejudicial to the interests of the company. In response, the company agreed to include an analysis of turnover by class of business in future annual reports and accounts. |
| Entity | JPMorgan Global Emerging Markets Income Trust plc |
| Balance Sheet Date | 31 July 2024 |
| Exchange of Substantive Letters (1) | No |
| Scope of Review (2) | Full |
| Quarter Published | June 2025 |
| Auditor (5) | Forvis Mazars LLP |
| Case Summary / Press Notice | N/A |