FRRP findings in respect of strategic report and operating segments

  • FRC Image

08 Dec, 2016

The Financial Reporting Council (FRC) has issued a press release of the findings of the Financial Reporting Review Panel (FRRP) stemming from its review of the annual report and accounts of Sports Direct International plc for the year ended 26 April 2015.

The principal issue arising related to whether the 2015 strategic report complied with the Companies Act 2006 requirement to be balanced and comprehensive.

The FRC noted several issues relating to the lack of discussion provided by Sports Direct in relation to international stores in its Sports Retail division, particularly those in Austria and the Baltic states in the 2015 report. It also noted a continuing lack of discussion about international stores in the 2016 strategic report. Additionally the FRC considered whether the level of aggregation provided in the company's segmental reporting disclosures was compliant with the requirements of IFRS 8 Operating Segments.

Following discussion with the FRC, the directors of Sports Direct have provided additional commentary about Sports Retail's international stores in the 2016 interim results and separately presented segmental information about these stores rather than aggregating them with UK stores. These changes will also be reflected in the company's 2017 annual report.

The full press notice can be obtained from the FRC website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.