BT 2015 Annual Report Download - page 104

102 BT Group plc
Annual Report 2015
e noted the new UK orporate overnance ode and uidance
on is anaeent nternal ontrol and elated inancial and
usiness eportin which the  issued in epteber 01 and
noted the proposed prorae of activit around chanes to ris
anaeent ethodolo aterial controls ris culture and oard-
level overnance and review which will enhance our current processes.
ewillreport aainst these new disclosure reuireents in 01.
n addition soe of the other ore sinificant atters we discussed
durin the ear are set out below.
Financial reporting
e
 reviewed the nnual eport  or 0- toether with annual
half-ear and uarterl results announceents for recoendation
to the oard
 considered the appropriateness of the roups accountin policies and
critical accountin estiates and e udeents and
 considered the nnual eport in the contet of advisin the oard
that the nnual eport presents a fair balanced and understandable
view of the business and its perforance. rocesses and procedures
that underpin our consideration include appropriate senior anaers
across the business provide the content havin been full briefed
on the fair balanced and understandable reuireent a dedicated
core tea of senior anaers is responsible for overall co-ordination
consistenc and detailed review and challene of content subissions
the internal auditors test the verification of all facts the line of
business s s and e functional heads confir that the
consider the content in respect of their area of responsibilit to be
fair balanced and understandable and the isclosure oittee
reviews and assesses the nnual eport as a whole. e also received
an earl draft of the report to enable us to provide a tiel review
and considered coent. ll of this allowed us to provide positive
assurance to the oard.
he sinificant issues we considered in relation to the financial
stateents for the ear ended 1 arch 01 are set out below.
ediscussed these issues as well as the areas of particular audit focus
as described in the Independent auditors’ report on paes 1 to 1
with the eternal auditors durin the ear.
Group accounting policies, critical accounting estimates and key
judgements
e reviewed the accountin policies includin a paper fro
anaeent and the disclosures in note  to the consolidated
financial stateents that relate to critical accountin estiates and e
udeents and re-confired the reained appropriate for the roup.
Going concern
e considered anaeents forecasts of roup cash ows and net
debt as well as the financin facilities available to the roup. ollowin
this review and a discussion of the sensitivities we confired that
it continues to be appropriate to follow the oin concern basis of
accountin in the financial stateents. urther detail on the basis of
theoin concern assessent b the directors is set out on pae 10.
Goodwill impairment
e reviewed anaeents process and ethodolo for assessin the
carrin value of oodwill. his included consideration of the ipact of
the re-oranisation of  onferencin and  ecurit into  lobal
ervices. e also considered the cash ow forecasts for the roups cash
eneratin units Us that hold oodwill bein  lobal ervices
usiness and  onsuer. e considered the e assuptions
resultin headroo and the sensitivities applied b anaeent in
forin its assessent that no oodwill ipairent chares were
reuired. e areed with anaeents assessent that there was no
ipairent of oodwill this ear. e also discussed and areed with
anaeents disclosures in respect of the headroo in  lobal
ervices in note 1 to the financial stateents.
BT Pension Scheme (BTPS)
e reviewed the assuptions underlin the  19 accountin
valuation of the pension liabilities in the financial stateents and
considered the financial assuptions includin the discount rate
future ination salar increase epectations and pension increases as
suarised in note 19 to the financial stateents. e also considered
sensitivities around the assuptions and reviewed the accountin
ipacts as well as the ipact of the assuptions on the 011
liabilities and 011 incoe stateent and the related disclosures.
e were satisfied that these were appropriate.
Revenue, including major contracts
n addition to our review of the appropriateness of accountin
policies anaeent provided reular updates on the perforance
of aor contracts in  lobal ervices. his included an overview of
the tradin and operational perforance of the contracts assessin
the recoverabilit of dedicated contract assets assessin the future
perforance of the contracts and an reuireent for loss provisions.
e areed with anaeents assessent that no sinificant
additional provision for loss or ipairent of assets was reuired this
ear. he business continues to focus on iprovin the overnance
risanaeent and assurance of aor contracts and we considered
a report fro anaeent on wor undertaen to put in place earlier
ris identification reportin and tracin whilst aintainin a level of
assurance via independent reviews and audits.
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e considered the results of anaeents annual review of asset lives
verification of assets and full depreciated assets. e considered the
udeents taen in relation to asset lives and the ethodolo applied
to consider asset verification and we were satisfied that an proposed
revisions were appropriate.
Other matters
ach uarter as part of our review of the uarterl results we are
provided with a suar of specific ites and anaeents view
of the ualit of earnins and of the eective ta rate. e considered
whether specific ites are appropriatel cateorised. t the half-ear
and full-ear a detailed assessent of provisions is also provided and
discussed. n each uarter and for the full ear the coittee was
satisfied with the inforation analsis and eplanations provided in
relation to the results.
Regulatory reporting
e reviewed the eulator inancial tateents for the ear ended
1 arch 01 includin e financial results iplications and riss
ofreulator action and related financial reportin issues.