Experian 2013 Annual Report Download - page 73
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Please find page 73 of the 2013 Experian annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.•Received a compliance update at
each meeting including details of
UK Bribery Act 2010 compliance and
US regulatory issues.
The significant issues in relation
to the Group financial statements
considered in respect of the year ended
31 March 2013, and the manner in
which these issues were addressed,
can be summarised as follows:
•The Committee reviewed a
summary of the treatment of the
acquisition of the further interest
in Serasa and, in particular, the
accounting for the put option,
concluding that it was appropriate to
recognise the change in the fair value
of the put option from 1 April 2012 to
the date of the acquisition
in the Group income statement.
•The Committee considered the
accounting treatment of the
disposal of the comparison shopping
and lead generation businesses in
the light of the transaction that was
completed during the year. It accepted
the recognition of the loan note and
the determination that the inclusion
of the results and cash flows of
these businesses and the disposal
transaction within discontinued
operations was appropriate.
•The Committee considered the
recognition of the costs of the Group’s
efficiency programme and concluded
that both the charge recognised in the
year and the provision at the balance
sheet date were appropriately stated.
•The Committee considered
management’s impairment
analysis and concurred with the
conclusion that no impairment
charges needed to be recognised
in the year. It was noted that the
headroom within the Asia Pacific
region had declined during the
year due to continued pressure on
the performance of the Group’s
businesses within that region.
•Based on the outcome of the
performance evaluation in respect of
the year ended 31 March 2012, and
having concluded that the external
auditors and Experian had complied
with the guidance set out in the
UK Financial Reporting Council’s
Guidance on Audit Committees,
made a recommendation to the
Board (for shareholder approval) in
relation to the re-appointment of the
external auditors and considered their
engagement terms.
•At each meeting, received an update
from the internal audit function,
including updates on work performed,
progress against the annual plan and
staffing, as well as details of actions
required by the Committee. During
the year, the Committee also received
presentations from management in
respect of matters raised by internal
audit, and approved the annual
internal audit plan.
•Reviewed a variety of reports on
risk – as more fully described in the
protecting our business section of the
annual report.
•Received a fraud and whistleblowing
update.
•Reviewed the effectiveness
of the Group’s system of risk
management and internal control,
including financial, operational,
compliance and risk management on
an ongoing basis.
•Reviewed and approved the Group’s
treasury policy, approved the annual
meeting schedule of the Committee
and evaluated its own performance
and concluded that its terms of
reference remained appropriate.
•Reviewed the key points of the UK
Financial Reporting Council’s Update
for Directors of Listed Companies in
relation to country and currency risk,
and noted the relevant updates to
the UK Financial Reporting Council’s
Corporate Governance Code and
Guidance on Audit Committees.
•The Committee considered three
specific tax issues. First, and in
the light of the further reduction in
the main rate of UK corporation tax,
it considered management’s analysis
of the carrying value of deferred tax
recognised in respect of tax losses.
The treatment of the asset, and
resultant impact on the tax charge
for the year, were considered
to be appropriate. Secondly, the
Committee considered an update
on the claim by the Brazilian
tax authorities in respect of the
deduction for tax purposes of
goodwill amortisation arising from
the acquisition of the majority
stake in Serasa in 2007. In the
light of developments during the
year, it concluded that it remained
appropriate to regard this claim
as remote. Thirdly, the Committee
considered management’s
assessment of the recognition of
deferred tax assets arising in Serasa
and Computec and the recognition
of those assets through equity
and the Group income statement
respectively. It concluded that the
accounting for and recognition of
these assets was appropriate.
Business overview Business review Governance Financial statements
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