Answer
a.
At M & S, the owner must receive goods and take over the risks and rewards associated with owning particular goods before revenue is acknowledged. Therefore, the recognition of revenue ensues after the effective transfer of goods and their inherent risks and rewards to the intended owner.
b.
M & S provides the historical costs of goodwill, lands and buildings and computer software prior to amortization and impairment.
M & S provides the fair values of trading derivatives and embedded derivatives.
Regarding new accounting policies, M & S confirms under "Basis of Preparations" that in 2015, it is not affected by recent new amendments pronounced by IFRS, such as those dealing with IFRS 10 and IAS 27.
c.
Note 1 offers explicit particulars regarding the accounting principles followed by M & S in preparing its financial statements through the years. These can be used to check for consistency of the accounting principles.
d.
Historical returns are used in cases of deferred income relating to refunds and loyalty schemes. Additionally, historical redemptions are also used in such cases. The aim is to ensure that the sales, returns, deferred incomes and redemptions are allocated to their respective period. The balances are regularly inspected to ensure they reflect the best estimates, which may not be the same as the actual amounts.
Work Step by Step
a.
At M & S, the owner must receive goods and take over the risks and rewards associated with owning particular goods before revenue is acknowledged. Therefore, the recognition of revenue ensues after the effective transfer of goods and their inherent risks and rewards to the intended owner.
b.
M & S provides the historical costs of goodwill, lands and buildings and computer software prior to amortization and impairment.
M & S provides the fair values of trading derivatives and embedded derivatives.
Regarding new accounting policies, M & S confirms under "Basis of Preparations" that in 2015, it is not affected by recent new amendments pronounced by IFRS, such as those dealing with IFRS 10 and IAS 27.
c.
Note 1 offers explicit particulars regarding the accounting principles followed by M & S in preparing its financial statements through the years. These can be used to check for consistency of the accounting principles.
d.
Historical returns are used in cases of deferred income relating to refunds and loyalty schemes. Additionally, historical redemptions are also used in such cases. The aim is to ensure that the sales, returns, deferred incomes and redemptions are allocated to their respective period. The balances are regularly inspected to ensure they reflect the best estimates, which may not be the same as the actual amounts.
