Interim reporting

In early 2025, major cyberattacks on UK retailers underscored the necessity of addressing cyber risks in interim financial statements and interim reports.

Companies may need to disclose cyber risks in their interim financial statements, revising their principal risks and uncertainties for the remainder of the fiscal year. Clear communication regarding the management of cyber risks is essential. If these risks affect financial statements, comprehensive explanations will aid in stakeholder understanding. For an in-depth look at reporting cyber risk, check out our article.

In April 2025, the US government imposed global tariffs, while ongoing negotiations are reshaping international trade agreements.

Stay updated on developments and sector-specific insights through our Tariff Hub.

With the announcement of the UK's Economic Prosperity Agreement with the US in May 2025, significant elements of future trade relations were outlined. However, many sectors relying on US markets still face uncertainty.

Changes in tariffs and new international trade agreements could impact interim financial statements in several ways:

• Non-financial assets may require further impairment assessments under IAS 36 Impairment of Assets, as any goodwill impairment losses recorded during the interim are irreversible.
• Contracts should be evaluated for potentially onerous conditions in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
• Heightened uncertainty may necessitate recalibration of expected credit loss models under IFRS 9 Financial Instruments, as tariff changes could signal increased credit risk. For additional insights, refer to our article.
• Enhanced disclosures under IAS 1 Presentation of Financial Statements may be required for balances now subject to increased estimation uncertainty, with sensitivity analyses covering a broader range of potential changes to key inputs.
• In accordance with IAS 10 Events after the Reporting Period, companies must monitor trade developments from the end of the interim reporting period until the issuance date of the interim financial report, assessing the need for disclosures or adjustments.
• Significant changes in tariffs and trade developments could require a reassessment of the going concern assumption, leading to extra disclosures in interim financial reports.
• Entities should evaluate their compliance with loan covenants, as the classification of loans may be affected. Breaching covenants before the end of the interim reporting period could necessitate additional disclosures under IAS 1.
• Management reports should detail exposure to US markets, adjusting discussions on principal risks and uncertainties to incorporate US-related risks and new opportunities.

The UK Court of Appeal's decision regarding motor finance lending is currently under appeal, with a ruling from the UK Supreme Court anticipated in July 2025.

This ongoing legal issue creates uncertainty for year-end reporting in 2024, requiring judgments about the likelihood of claims and potential liabilities. Following the Supreme Court's ruling later this year, companies may need to revise their prior estimates and enhance their disclosures.

While this legal matter pertains specifically to motor finance, other sectors should also evaluate the implications for their commission arrangements.

The Financial Conduct Authority (FCA) is preparing for a potential redress scheme, having issued a request for feedback in June 2025. Entities affected by this scheme should incorporate its implications into their interim reporting.

In 2024, the UK High Court and UK Court of Appeal issued judgments on the case of Virgin Media Ltd vs. NTL Pension Trustees II Ltd. The judgments relate to defined benefit pension schemes that were contracted out of the state pension scheme (SERPS - the State Earnings-Related Pension Scheme, and S2P - State Second Pension) at any time between 1997 and 2016. The Courts ruled, that without the required actuarial confirmation, amendments to the schemes are void. In June 2025, the Government announced that it intends to introduce legislation which would allow pension schemes to obtain the necessary actuarial confirmations retrospectively.

Although the uncertainty over the impact on pension scheme liabilities of any missing actuarial confirmations is not entirely removed until the legislation has been passed and required actuarial confirmation is obtained, this development is still relevant when considering the impact of the ruling on scheme liabilities. Disclosures relating to affected pension schemes should explain the impact of this development.