Experian 2016 Annual Report Download - page 80

Significant issues
The table below summarises the significant matters considered by the Committee in relation to the Group and Company financial
statements and the manner in which they were concluded. These matters, together with any other significant considerations of the
Committee, are reported to the Board. The minutes of each Audit Committee meeting are also circulated to all members of the Board.
Matter considered Conclusion
Tax
The Committee received a regular update from management
on the adequacy of provisions in respect of significant
open tax matters. The review included details of ongoing
correspondence with tax authorities in the UK, the USA
and Brazil and the principal areas of tax challenge.
The Committee agreed that the assessment of the uncertain
tax positions was appropriate and that the judgment taken
in respect of the year-end provision in the Group financial
statements was reasonable.
The Committee noted the evolving and complex tax laws
that applied to the Group, and the uncertainty that these
might bring. It concluded that the Group tax risk disclosures
were appropriate.
Data security incident
The Committee received a thorough full briefing on the
background to the incident, which occurred in September
2015, and the management actions taken as a result
including those in connection with ongoing litigation.
In addition the Committee received an analysis of the
insurance cover, accounting impact and the proposed
disclosures in the Annual Report.
The Committee concluded that this matter had been
appropriately provided for at 31 March 2016 and
appropriately reported in the Group financial statements.
Impairment review
A summary of the impairment analysis and underlying
process was provided to the Committee. The Committee
scrutinised the methodology applied by management and
reviewed the cost allocation policies utilised. The analysis
indicated that all segments continued to have sufficient
headroom, and the headroom within the Asia Pacific cash
generating unit (‘CGU’) had increased during the year
whilst the EMEA headroom had decreased.
The Committee concurred with management’s conclusion
that no impairment of goodwill was required.
The Committee noted the headroom and the sensitivity
to changes in assumptions and concurred with the
proposed disclosure of these in note 19 to the Group
financial statements.
Business disposals
The Committee received an update on reporting aspects
of disposal transactions during the year. None of these
was required to be reported as a discontinued operation
for the purposes of IFRS 5.
The Committee noted the position and the recommended
disclosures.
Brazil
An update was provided to the Committee on the litigation
in Brazil relating to the use of credit scores, and the related
administrative effort to clear the backlog of the individual
claims following the earlier positive ruling.
The Committee noted the progress made in resolving the
open matters and agreed the contingency disclosure
proposed in note 40(b) to the Group financial statements.
Other litigation and regulatory matters
The Committee received an analysis of the open litigation
and regulatory matters affecting the Group, and the
associated financial reporting considerations.
The Committee concluded that these matters had been
appropriately provided for at 31 March 2016.
The Committee considered and concurred with the
proposed contingent liability disclosures included in
the notes to the Group financial statements.
Corporate governance report continued
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78 Governance •Corporate governance report