4.07 The segment assets in the results announcement differ from the audited report, although the market was told nothing had changed

UK Company C · an AIM-quoted scientific instruments group · Regulator-style question

QuestionLowEstablishedStrategic report, APMs and the Listing Rules
Area of the report
Results announcements of [date] and [date] against segment note 3 (pp.75-76)
Year
Both years
Status
Established: Established from the company’s own documents; the requirement is clear.
Who acts
Chief Financial Officer, Audit Committee
When
Next results announcement (preliminary results for 2026)

In brief

The unaudited preliminary results announcement of [date] gave segment assets of [amount] ([segment]), [amount] ([segment]) and [amount] (Head office). The audited report approved on [date] gives [amounts] for the same date, and its 2024 comparatives differ from the announcement too. The confirmation announcement of [date] told the market 'There [wording masked] [date]'. Totals are the same, so the question is which split is right and why the change was not mentioned.

The evidence, as filed

Masked extract from the Annual Report 2025, page 75
Annual Report 2025, page 75 · Audited 2025 segment assets
Masked extract from the Annual Report 2024, page 76
Annual Report 2024, page 76 · The 2024 report as published: the same split as the 2025 report, not the announcement's
Masked extract from the Annual Report 2025, page 76
Annual Report 2025, page 76 · Audited 2024 comparative segment assets

Names, figures, dates, logos and any wording that could be searched back to the company are boxed out in grey; the point is highlighted in yellow.

What the report shows, and what the rule requires

What the annual report showsWhat the rule requires
What the annual report shows

Announcement, [date] segment assets: [n] / [n] / [n] (total [n]); audited report: [n] / [n] / [n] (total [n]). Announcement 2024 comparatives [n] / [n] / [n] against [n] / [n] / [n] in both the 2025 report and the 2024 report as published. Confirmation: no changes to the results.

What the rule requires

The announcement's segment table agreeing with the audited note (and with the 2024 report for comparatives), or the confirmation announcement stating which figures changed after the audit and why.

The rule

IFRS 8 Operating Segments paragraph 23 (measure of segment assets reported to the chief operating decision maker)

Version relied on: UK-adopted international accounting standards (UK Endorsement Board), as in force for financial years beginning in or after January 2025

Summary; IFRS text is copyrighted

A measure of profit or loss must be reported for each reportable segment, and segment assets and liabilities where they are regularly given to the chief operating decision maker.

Why it applies here: the statements of profit, the balance sheet totals and the earnings per share did not change, so 'results' in the narrow sense did not change; but the announcement's segment table, which included restated-looking 2024 comparatives that the audited report does not use, was replaced after the audit without the market being told.

Why it matters

Investors who used the announcement's segment balance sheet (for example to judge capital employed by segment) held figures the audited report does not support, after being told nothing had changed; the totals and profits were unaffected.

Exposure

A question on the accuracy of a market announcement; the audited report is not affected. A correcting statement in the next results announcement would answer it.

Our workings

Fact

the preliminary results announcement of [date] (unaudited) prints a segment assets and liabilities table: 2025 assets [n]; net assets [n]; 2024 assets [n]. Segment note 3 of the audited 2025 report (pp.75-76) prints 2025 assets [n], net assets [n], ([n]) and [n], and 2024 assets [n], the last agreeing with the 2024 report as published. The [date] announcement says the full financial statements were approved on [date] and 'There [wording masked] [date]'.

Our computation

the segment allocation moved by up to [n] (Head office net assets [n] to ([n])) while every total stayed the same (workings).

Segment assets, [date] (£m)AnnouncementAudited reportDifference
[segment][n][n][n] - [n] = [n]
[segment][n][n][n] - [n] = [n]
Head office[n][n][n] - [n] = -[n]
Head office net assets[n]([n])-[n] - [n] = -[n]
Segment assets, [date]: [segment][n][n][n] - [n] = -[n]
Segment assets, [date]: [segment][n][n][n] - [n] = [n]
Segment assets, [date]: Head office[n][n][n] - [n] = [n]

Management’s best defence, and our reply

The company can say that the 'results' are the income statement, earnings per share and the balance sheet totals, none of which changed, and that segment assets are a secondary allocation of head-office items (goodwill, borrowings, deferred tax) that was refined during the audit. It can add that the preliminary announcement was clearly labelled unaudited and that the audited note is the authoritative figure. That is a fair reading of 'results', which is why this is a question; however, the announcement printed a full segment balance sheet, its 2024 column did not match the company's own published 2024 note, and a sentence in the confirmation would have cost nothing.

The fix

  1. Tie the announcement's notes to the audited note before release; where the audit changes any table, say so in the confirmation (for example: 'The segment analysis of assets and liabilities in note 3 has been updated; the totals and the results are unchanged').

Question for the company

Which segment split of assets and liabilities at [date] and 2024 is correct, why did the preliminary results announcement give different figures (including 2024 comparatives that differ from the 2024 report), and why did the confirmation announcement not mention the change?

Evidence relied on

#What it showsTypeWhere
1Announcement: 2025 segment assetsDocument
2Announcement: 2025 segment net assetsDocument
3Announcement: 2024 segment assetsDocument
4The market was told the audited accounts changed nothingDocument
5Audited 2025 segment assetsDocumentAnnual Report 2025, page 75
6Audited 2025 segment net assetsDocumentAnnual Report 2025, page 75
7Audited 2024 comparative segment assetsDocumentAnnual Report 2025, page 76
8The 2024 report as published: the same split as the 2025 report, not the announcement'sDocumentAnnual Report 2024, page 76

Prepared by Pramanex from the company’s published annual reports, without the company’s involvement, to show how an annual report review reads. The company is not named, and nothing on this page is a statement about any identifiable company. Observations are not an audit, review or other assurance engagement, and not legal advice. A regulator-style question is a question, not a conclusion.

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