Marks and Spencer 2015 Annual Report Download - page 85

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GOVERNANCEFINANCIAL STATEMENTS OUR PERFORMANCE OUR BUSINESS
83
ANNUAL REPORT AND FINANCIAL STATEMENTS 2015
FINANCIAL STATEMENTS
The key risks we identifi ed are:
1 Presentation of non-GAAP measures
2 Impairment of store assets
3 Inventory valuation and provisions
4 Revenue recognition – gift cards,
loyalty schemes, returns and
franchise arrangements
5 Supplier rebates
6 Retirement benefi ts
The assessed risks of material misstatement
are those that had the greatest e ect on
our audit strategy, the allocation of
resources in the audit and directing the
e or ts of the engagement team.
The Audit Committee has requested that,
while not required under International
Standards on Auditing (UK and Ireland),
we include in our report any signifi cant
fi ndings in respect of these assessed
risks of material misstatement.
The description of risks below should be
read in conjunction with the signifi cant
issues considered by the Audit Committee
discussed on pages 48 and 49.
Our audit procedures relating to these
matters were designed in the context of
our audit of the fi nancial statements as a
whole, and not to express an opinion on
individual accounts or disclosures. Our
opinion on the fi nancial statements is not
modifi ed with respect to any of the risks
described below, and we do not express an
opinion on these individual matters.
See tables on p84-87 for more detail.
As required by the Listing Rules we have
reviewed the directors’ statement contained
within the ‘Other disclosures’ section on
page 82 that the Group is a going concern.
We confi rm that:
> We have concluded that the directors’ use
of the going concern basis of accounting
in the preparation of the fi nancial
statements is appropriate.
> We have not identifi ed any material
uncertainties that may cast signifi cant
doubt on the Group’s ability to continue
as a going concern.
However, because not all future events or
conditions can be predicted, this statement
is not a guarantee as to the Group’s ability to
continue as a going concern.
In our opinion:
The fi nancial statements give a true
and fair view of the state of the Group’s
and of the parent company’s a airs
as at 28 March 2015 and of the Group’s
profi t for the 52 weeks then ended.
The Group fi nancial statements have
been properly prepared in accordance
with International Financial Reporting
Standards (IFRSs) as adopted by the
European Union.
The parent company fi nancial statements
have been properly prepared in
accordance with IFRSs as adopted by
the European Union and as applied
in accordance with the provisions
of the Companies Act 2006.
The fi nancial statements have been
prepared in accordance with the
requirements of the Companies
Act 2006 and, as regards the Group
fi nancial statements, Article 4 of
the IAS Regulation.
The fi nancial statements comprise the
Consolidated Income Statement, the
Consolidated Statement of Comprehensive
Income, the Consolidated and Company
Statements of Financial Position, the
Consolidated and Company Statements
of Changes in Equity, the Consolidated
and Company Statements of Cash Flows,
the reconciliation of net cash fl ow to
movement in net debt note, and the related
notes 1 to 28 and C1 to C7. The fi nancial
reporting framework that has been applied
in their preparation is applicable law and
IFRS as adopted by the European Union and,
as regards the parent company fi nancial
statements, as applied in accordance with
the provisions of the Companies Act 2006.
OUR ASSESSMENT OF RISKS OF MATERIAL MISSTATEMENT
OPINION ON FINANCIAL STATEMENTS OF MARKS AND SPENCER GROUP PLC
GOING CONCERN
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF MARKS AND SPENCER GROUP PLC