IAS 34 para 15B (g), disclosure of accounting misstatement, restatement of prior periods

Ibstock PLC – Half year report – 30 June 2016

Industry: manufacturing

Notes to the condensed consolidated financial statements (extract)

  1. Basis of preparation (extract)

Management has identified a misstatement related to information presented within the 2015 Annual report and accounts and has restated the comparative amounts for the prior period presented. The misstatement related to the non-recognition of a deferred taxation liability in respect of mineral land held by the Group due to the incorrect determination of the related tax base.

The restatement results in the recognition of an additional deferred taxation liability of £8,453,000 at the date of acquisition (26 February 2015) in the comparative period and a reduction to negative goodwill of the same amount. In the comparative interim period, the taxation credit is unaffected and at 30 June 2015, the deferred taxation balance has been restated to £60,049,000. Negative goodwill and statutory profit for the six months ended 30 June 2015 are reduced by £8,453,000. Basic and diluted earnings per share are reduced by 3.21 pence per share to 31.78 pence per share in the comparative period, although the previously reported adjusted EBITDA and EPS measures are unaffected by this restatement. The deferred tax liability as at 31 December 2015 is increased by £7,607,000 with a related taxation credit recognised in the income statement in the accounting period to 31 December 2015 of £846,000.