Financial Statements For the year ended
Relevant disclosures in the Consolidated
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- Accuracy of defined benefit pension scheme liabilities
| Relevant disclosures in the Consolidated Financial Statements • Financial statements Note 1 New and amended standards during the year and changes in accounting policies Note 2 (c) Critical accounting estimates and judgements i) Intangible assets Note 15 Intangible assets Audit committee report Significant issues related to the financial statements, Existence and valuation of intangible assets. Our results We have not identified any material misstatements from the testing performed. 65 Key audit matter How our scope addressed the matter Accuracy of defined benefit pension scheme liabilities We identified the accuracy of defined benefit pension scheme liabilities as one of the most significant assessed risks of material misstatement due to error. As at 31 March 2022 the UK pension scheme has recorded a surplus of k and the Irish scheme has liabilities of £592k. The accuracy achieved by estimating the liabilities of the pension scheme is inherently judgemental and sensitive to the selection and alteration of key inputs and therefore susceptible to management bias. Given the material size of the pension schemes, even small movements in the inputs and assumptions could cause the obligation to be materially misstated in the group financial statements. In responding to the key audit matter, we performed the following audit procedures We assessed the professional qualifications of the management’s expert and engaged internal actuaries to challenge the inputs, assumptions and calculations used in valuing the obligation disclosed in the financial statements, namely the discount rates and life expectancy factors applied We reconciled the overall liability, consolidated income statement charge and OCI charge to the trial balance and IAS 19 reports provided by the actuary Performed substantive analytical procedures by comparing pension member numbers year on year to identify unusual movements and assess reasonableness of inputs used in calculating the estimated liability and We assessed the relevant disclosures to ensure they conform with the requirements of International Accounting Standard (‘IAS’) 19 Employee Benefits’. Download 0.68 Mb. Share with your friends:
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