Guardian Media : 24 Mar 2023 – Guardian Media Limited – Audited Consolidated Financial Statements for the year ended December 31st, 2022 (Full)

GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2022
C O N T E N T S	Page
Independent Auditor's Report	2 - 6
Consolidated Statement of Financial Position	7 & 8
Consolidated Statement of Comprehensive (Loss)/Income	9
Consolidated Statement of Changes in Equity	10
Consolidated Statement of Cash Flows	11 & 12
Notes to the Consolidated Financial Statements	13 - 82
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Ernst & Young Services Limited	Tel: [phone]
P.O. Box 158	Fax: [phone]
5/7 Sweet Briar Road	www.ey.com
St. Clair, Port of Spain
Trinidad

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF GUARDIAN MEDIA LIMITED

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of Guardian Media Limited and its subsidiaries ("the Group"), which comprise the consolidated statement of financial position as at 31 December 2022, and the consolidated statement of comprehensive (loss)/income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Group as at 31 December 2022 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards ("IFRSs").

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing ("ISAs"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' ("IESBA") International Code of Ethics for Professional Accountants (including International Independence Standards) ("IESBA Code"), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated financial statements.

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The signature "EY" in this report represents only Ernst & Young Services Limited, a limited liability company established under the laws of Trinidad and Tobago. The contents of this document are provided solely by Ernst & Young Services Limited and any liability arising therefrom is limited to Ernst & Young Services Limited.

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF GUARDIAN MEDIA LIMITED

Report on the Audit of the Consolidated Financial Statements (continued)

Key Audit Matters (continued)

Key Audit Matters	How our audit addressed the key audit matter

Estimation uncertainty involved in impairment testing of goodwill and other intangibles with indefinite lives

Refer to related disclosures in notes 3 and 6, and

Our audit procedures focused on the assessment of

accounting policy note 2 (xxii) to the

the key assumptions utilized by management

consolidated financial statements. As described

including the cash-flow projections and the discount

in these notes, impairment tests are performed

rate. We also evaluated whether the value in use

annually on goodwill and certain indefinite life

impairment test model met the requirements of IAS

licences.

36.

As required by IAS 36: "Impairment of Assets",

To this end our procedures included, amongst others,

evaluating

and

testing

the

assumptions,

management performed an impairment test on

methodologies,

Cash

Generating

Unit

(CGU)

these assets. Based on

the impairment

test

determination, discount rate and other key data used

performed during the year, no impairment was

by management. We also assessed the assumptions

recorded in 2022.

by comparing to historical performance of the entity,

Impairment

tests

on

goodwill and

other

local

economic

conditions and other alternative

independent sources of information. In so doing we

intangibles involve significant estimation and

evaluated the sensitivity of the key assumptions to

the application of a high level of judgement

reasonable

possible

changes,

especially with

the

relative

to

key

assumptions such

as

the

added estimation uncertainty

brought on

by

the

applicable discount rate and future cash-flows.

pandemic which could cause the carrying amount of

In determining future cash-flow projections,

the CGU to exceed its recoverable amount.

management uses assumptions and estimates in

We involved our EY valuation specialist to assist

respect

of

future

market conditions,

future

with

our

audit

of

the

impairment

test

model,

economic growth, expected market share and

including the cash flows, discount rate and long-term

gross margins including

the possible

current

growth rates.

and future negative effects of the pandemic. The

outcome of the impairment testing is sensitive

We

also

assessed

the appropriateness

of

the

to these assumptions and estimates, such that

disclosures in the notes to the consolidated financial

changes

in

these

assumptions/estimates

may

statements,

with

reference to

that prescribed

by

result in different impairment test conclusions.

IFRSs.

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The signature "EY" in this report represents only Ernst & Young Services Limited, a limited liability company established under the laws of Trinidad and Tobago. The contents of this document are provided solely by Ernst & Young Services Limited and any liability arising therefrom is limited to Ernst & Young Services Limited.

INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDERS OF GUARDIAN MEDIA LIMITED

Report on the Audit of the Consolidated Financial Statements (continued)

Other information included in the Group's 2022 Annual Report

Other information consists of the information included in the Group's 2022 Annual Report, other than the consolidated financial statements and our auditor's report thereon. Management is responsible for the other information. The Group's 2022 Annual Report is expected to be made available to us after the date of this auditor's report.

Our opinion on the consolidated financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

Responsibilities of Management and the Audit Committee for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The Audit Committee is responsible for overseeing the Group's financial reporting process.

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The signature "EY" in this report represents only Ernst & Young Services Limited, a limited liability company established under the laws of Trinidad and Tobago. The contents of this document are provided solely by Ernst & Young Services Limited and any liability arising therefrom is limited to Ernst & Young Services Limited.