Carphone Warehouse 2016 Annual Report Download - page 102

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Notes to the Group financial statements
100
t) Recent accounting developments
There were no new IFRSs or IFRIC interpretations that had to
be implemented during the year that significantly affect these
financial statements.
The following new standards, which are applicable to the
Group, have been published but are not yet effective and have
not yet been adopted by the EU:
• IFRS 9 'Financial Instruments'. This standard is the first step
in the process to replace IAS 39 'Financial Instruments:
Recognition and Measurement'. IFRS 9 introduces new
requirements for classifying and measuring financial assets
and affects the accounting for financial assets – IFRS 9 is
applicable for periods beginning on or after 1 January 2018.
• IFRS 15 'Revenue from Contracts with Customers' provides
guidance on the recognition, timing and measurement of
revenue. IFRS 15 is applicable for periods beginning on or
after 1 January 2018.
• IFRS 16 'Leases' establishes principles for the recognition,
measurement, presentation and disclosure of leases –
IFRS 16 is applicable for periods beginning on or after
1 January 2019.
It is not practicable to provide a reasonable estimate of the
effect of the adoption of the above standards until a detailed
review has been complete, however, IFRS 16 will require the
Group to recognise a lease liability and a right-of-use asset for
most of those leases previously treated as operating leases.
This will affect both non-current and current liabilities, fixed
assets and the measurement and disclosure of expense
associated with the leases which under the new standard will
be treated as depreciation and financing expense which were
previously recognised as operating expeses over the term of
the lease.
Certain other new accounting standards, amendments to
existing accounting standards and interpretations which are in
issue but not yet effective, either do not apply to the Group or
are not expected to have any material impact on the Group's
net results or net assets.
2 Segmental analysis
The Group’s operating segments reflect the segments routinely
reviewed by the Board and which are used to manage
performance and allocate resources. This information is
predominantly based on geographical areas which are either
managed separately or have similar trading characteristics
such that they can be aggregated together into one segment.
As explained in note 25, Virgin Mobile France, the Phone
House operations in Germany, the Netherlands and Portugal
have been treated as discontinued operations and are
therefore excluded from this segmental analysis.
The Group’s reportable segments have been identified
as follows:
• UK & Ireland comprises operations in the UK and Ireland
as well as operations in airports in the UK and Ireland.
• Nordics operates in Norway, Sweden, Finland, Denmark
and Iceland.
• Southern Europe comprises operations in Spain and Greece.
• Connected World Services is the Group’s B2B operation
which leverages the specialist skills, operating processes
and technology of the Group to provide managed services
to third parties looking to develop their own connected
world solutions.
UK & Ireland, Nordics and Southern Europe are involved in the
sale of consumer electronics and mobile technology products
and services, primarily through stores or online channels.
Transactions between segments are on an arm’s length basis.
00_DC 2016 Annual Report.pdf 100 11/07/2016 18:34