Topic wise KAMs extracted from Annual Reports of Power and Energy Companies of other Jurisdictions where the model similar to the new Auditors Report has already been adopted is given as follows:
- Pensions
- Impairment assessment
- Onerous contracts
- Valuation of derivative transactions in commodity trading
- Presentation of exceptional items and certain re-measurements
- Downstream revenue recognition
- Accounting for net pension obligations
- US financial controls
- Valuation of environmental provisions
- Accuracy and valuation of treasury derivative transactions
- Accuracy of capital expenditures
- Potential disposal of UK gas distribution business
- Revenue recognition
- Retirement benefit surplus
- Derivative financial instrument valuations
- Revenue recognition and provision for customer debts
- Capital expenditure
- The determination of the liabilities, contingent liabilities and disclosures arising from the significant uncertainties related to the Gulf of Mexico oil spill
- The current macroeconomic environment has the potential to materially impact the carrying value of the group’s upstream non-current assets
- The estimate of oil and gas reserves and resources has a significant impact on the financial statements, particularly impairment testing and Depreciation, Depletion and Amortization (‘DD&A’) charges
- Unauthorized trading activity within the integrated supply and trading function has the potential to impact revenue and profits