CB1-15: Limitations of Accounts and Alternative Reporting PDF

CB1-15: Limitations of accounts and alternative reporting Page 1 Limitations of accounts and alternative reporting Syllabus objectives 4.1 Describe the basic construction of accounts of different types and the r...

CB1-15: Limitations of accounts and alternative reporting Page 1 Limitations of accounts and alternative reporting Syllabus objectives 4.1 Describe the basic construction of accounts of different types and the role and principal features of the accounts of a company. 2. Explain the value of financial reporting on environmental, social and economic sustainability. 3. Describe alternatives to traditional financial reporting. 4.2 Assess the accounts of a company or a group of companies and discuss the limitations of such assessment. 7. Discuss the shortcomings of historical cost accounting. 8. Discuss the limitations in the interpretation of company accounts. 9. Discuss the ways that reported figures can be manipulated to create a false impression of a company's financial position. The Actuarial Education Company © IFE: 2019 Examinations  Page 2 CB1-15: Limitations of accounts and alternative reporting 0 Introduction In the previous chapter, we learned how to interpret accounts with the help of accounting ratios. In this chapter we consider some of the difficulties of using and interpreting accounting information. We also look at some more recent alternatives to the financial reports and accounts we have been considering up until this point. © IFE: 2019 Examinations The Actuarial Education Company  CB1-15: Limitations of accounts and alternative reporting Page 3 1 The shortcomings of historical cost accounting Historical cost accounting tends to distort profits during times of inflation. 1.1 Valuation of inventories Increase in inventory values: the time lag between the purchase of an item of inventory and its eventual sale means that companies are constantly understating costs of sales. If, for example, an item is purchased for £1 and sold for £1.50 the company will record a profit of £0.50. If, however, the cost of replacing that item of inventory has increased to £1.30 then the ‘real’ profit on the transaction is only £0.20. This will tend to overstate profits. Looked at another way, part of the cost of selling a good is the reduction in the remaining inventories. This reduction will be calculated on a historical cost basis – understating the true cost of replacing the item used up ie profits will be overstated. 1.2 Depreciation The depreciation charge will be calculated using the historical cost of the assets. This will tend to overstate profits. If inflation is positive, straight line depreciation over the useful life of a machine purchased, say, seven years ago will be less than on an identical machine purchased, say, two years ago. The difference will be particularly significant when inflation is high. In both cases the amount charged will be less than 10% of the cost of replacing the asset today. 1.3 Interest payments A company may receive interest on its investments, and pay interest on its loan capital. In times of inflation, part of the interest payment is really compensation for the erosion of the real value of capital. For a company that pays out more interest than it receives, profits will tend to be understated in times of high inflation. For a company that pays out less interest than it receives, profits will tend to be overstated in times of high inflation. In inflationary times, the real value of a loan with fixed payments decreases, so the borrower pays back less in real terms. Therefore the borrower gains and the lender loses in inflationary times. 1.4 Consistency over time Profits and asset values might be increasing in money terms, but it would not be immediately obvious how much was due to a real increase in the scale of a company’s operations and how much was simply due to inflation. Comparison between years is therefore difficult when using historical cost accounts because inflation will affect different figures in the financial statements in a different way. This sort of criticism applies to many items where values have to be compared over time. The Actuarial Education Company © IFE: 2019 Examinations  Page 4 CB1-15: Limitations of accounts and alternative reporting 2 Limitations in the interpretation of accounts The limitations of accounts will, in part, depend upon the way that the accounts are to be used. Almost every number in a set of accounts may be suspect in some respect. We will discuss the main limitations under the following (to an extent overlapping) subheadings:  subjectivity – whether the numbers are correct  appropriateness – whether the numbers are ‘correct’ for their purpose  comparison between firms  some limitations of ratio analysis  accuracy of figures. 2.1 Subjectivity Although regulations give a lot of guidance as to what are acceptable accounting principles, firms still use a range of different methods to arrive at the figures to put in their accounts. For example: Inventory valuation Inventory can be valued in a number of ways, eg first-in-first-out or weighted average. It seems unlikely that every firm chooses the ‘best’ method of valuing their stock. The choice of methods for valuing inventories an example of the subjective decisions required when constructing accounts. Depreciation Firms have a large choice as to the depreciation method used. Any method will at best approximate the true pattern of the reduction in the value of a firm’s non-current assets. Revaluation of assets Some firms revalue their assets when the asset values increase, others do not. Again this is an area where there is scope for judgement, and so subjectivity. In the UK, the directors’ report does have to disclose the market value of land if this differs significantly from the balance sheet value. Arguably firms that do not revalue assets are showing the wrong figure. On the other hand, companies can claim that according to the concept of prudence, they should only take account of any revaluation when the asset is sold, so again there is subjectivity. Intangible assets Intangible assets are often particularly hard to value. © IFE: 2019 Examinations The Actuarial Education Company  CB1-15: Limitations of accounts and alternative reporting Page 5 A great deal of subjectivity is involved in putting a value on a brand name, for example. Many companies don’t even try to value intangible assets. 2.2 Appropriateness of the figures used The figures presented in the accounts may not be the most appropriate for the purposes of a user of the accounts. Going concern The value of many assets would be much lower on a wind-up basis than on the on-going basis usually assumed. It is not appropriate to prepare the accounts on a going concern basis if the company is in serious financial trouble. Present values The amounts shown for trade receivables and payables (debtors and creditors) are their face values, not their true present values. This may not be appropriate if the company will not be paid for some time or interest rates are very high. Depreciated cost not economic value Non-current (fixed) assets are shown at their (depreciated) historical cost. Arguably, the value to a firm of an asset should be the (discounted) value of the future profit stream that the asset is expected to produce. Accuracy Giving a true and fair view does not mean that the accounts are absolutely accurate. Many items in the accounts will be estimated. End-year values The statement of financial position shows end of year values, but for many purposes it is more meaningful to use average values. For example, average values may be more appropriate when looking at the level of inventory a firm holds. 2.3 Differences between firms Many users of accounts wish to compare different firms: Comparability Many of the problems above are worrying not just because the figures may be wrong, but also different firms use different methods. This makes reliable comparisons between firms very difficult. The Actuarial Education Company © IFE: 2019 Examinations  Page 6 CB1-15: Limitations of accounts and alternative reporting Creative accounting A few firms may deliberately set out to mislead by choosing the accounting policies that will maximise reported profits. Formats The choice of accounting formats can mean that different firms can produce sets of accounts which are difficult to compare. Level of aggregation Some firms show more detailed splits of items than other firms. For example, one firm might give a detailed split of profits by country and by industry sector, where another simply gives the overall profit figure. When making comparisons between firms, the least disaggregated item across all firms will be the lowest level at which the accounts can be analysed. 2.4 Some limitations of ratio analysis Ratio analysis is a very useful technique for the interpretation of financial statements. It does, however, have its limitations. Some of these are outlined below: Diverts attention It diverts attention from the figures and statements themselves. It is important to look at aspects such as the sheer size of the company under consideration. A larger company will have more bargaining power and may be able to enjoy economies of scale. It is also important to look at information in the notes which is not usually reflected in the ratios. If someone is suing the company for damages this will be disclosed in a note stating the amount claimed and possibly giving an indication of the expected outcome. There will not be any mention of the matter in the statement of financial position itself. Appropriate comparison Comparisons can be affected by different accounting policies or by other external factors. If, for example, two haulage companies use different methods for the calculation of depreciation then any ratios based on their financial statements might not be comparable. Similarly, two similar businesses could be affected to different extents by currency movements. A vehicle distributor selling Japanese cars will be exposed to movements in the value of Yen to a much greater extent than a distributor of British cars. © IFE: 2019 Examinations The Actuarial Education Company  CB1-15: Limitations of accounts and alternative reporting Page 7 Different industries There could be peculiarities of the trade which make it difficult to interpret certain ratios. A property company, say, might appear to have a very low return on capital employed. One reason for this is that the value of the properties shown in the statement of financial position will be updated on a regular basis, thus increasing capital employed. This will make it difficult to compare results with a business whose assets have not been revalued. Creative accounting The statements could have been deliberately distorted by so called creative accounting. This involves the deliberate abuse of the subjectivity inherent in accounting to select accounting policies or make assumptions which tend to bias the figures in the direction chosen by management. 2.5 Accuracy of the figures Out of date The figures reported will necessarily be out of date by the time they come to be published and read. Window dressing Some firms have been known to delay transactions so that they occur just after the year end, or to advance other transactions so that they are included in the end-year accounts. This then means that the company’s accounts can give an accurate view of the underlying figures, yet still mislead when compared with other firms or over different periods. Forecasting The accounts are intended primarily as a historical record. However, in practice they are not used solely for reviewing past performance. Accounts are widely used as a means of predicting the future. But past performance is unlikely to be an accurate guide to the future. Interpreting accounts for this purpose is full of problems. For example:  no indication is given of the firm’s plans for the future  no real idea is given of how sustainable the existing profit figures are. The Actuarial Education Company © IFE: 2019 Examinations  Page 8 CB1-15: Limitations of accounts and alternative reporting 3 Manipulation of reported figures Accounting methods can be used to enhance the image of a firm and make it look better than it is. Such practice will make the current reported profitability a poor indicator of future profitability. The manipulation may involve  inflating current operating income (via an increase in booked sales or a decrease in expenses) or  reducing current operating income (in order to increase future earnings). The latter may be encouraged by the use of executive incentives linked to future performance. In theory, one of the reasons why the audit process is in place is to prevent such manipulation occurring. However, given the level of subjectivity permitted in accounts, sometimes manipulation of figures can take place whilst still complying with accounting policies and standards. Accounting practices that can lead to such misstatements include:  inappropriate depreciation of tangible assets  inappropriate amortisation of intangible assets  inappropriate valuation of inventories  inappropriate valuation of future liabilities (including pension provisions)  unwarranted revaluation of tangible assets  creating intangible assets of questionable true worth  omitting contingent liabilities  ‘prebooking’ of anticipated sales revenues. Scrutiny of the trends shown by items in the accounts may assist to identify manipulation, as will consideration of the status of the company (and, therefore, the need to manipulate the reported financial position). It must be stressed that such manipulation of reported figures may be illegal and certainly would be contrary to the professional standards expected of accountants and auditors. Question Comment on the following statement: ‘The use of company accounts in investment decision making is fundamentally flawed. In particular, the market value of the company’s assets may bear no relationship to the historical balance sheet values. Therefore there is little useful information to be gained from either the accounts or the ratios derived from them.’ © IFE: 2019 Examinations The Actuarial Education Company CB1-15: Limitations of accounts and alternative reporting Page 9 Solution Historical cost accounting vs market value The statement is correct in that company accounts are prepared on a historical cost basis, and so take no account of inflation. Companies may from time to time revalue their assets, and show the new values in their balance sheets, but they are not usually obliged to do so. Similarly, companies’ depreciation charges will be based on the historical cost of their assets. These charges are likely to underestimate the true cost of using non-current assets. Useful information from the accounts However, company accounts contain (at least) the following items:  statement of financial position  statement of comprehensive income  cashflow statement  directors’ report  auditors’ report. Each of these items can be useful in generating a picture of the company. Useful information from accounting ratios Accounting ratios are useful for making comparisons:  of the company over time  with other companies. Because of the variations in accounts from one company to another, ratios cannot be expected to give definitive answers. They do, however, give valuable indicators as to aspects which may need further investigation. Finally, it is worth asking whether there is any better source of quantitative information, however imperfect the accounts may be. An exam question on the limitations of accounts might be asked at the end of a long ratio analysis question. Here, the subjectivity in the accounts, the difficulties of making comparisons between companies, and the important matters that are not revealed in the accounts may need to be discussed. Exam questions may also ask for a discussion of the potential for producing misleading accounts, along with the regulatory, legal and ethical issues that would serve to safeguard the accounts. The Actuarial Education Company © IFE: 2019 Examinations  Page 10 CB1-15: Limitations of accounts and alternative reporting 4 Reporting on environmental, social and economic sustainability The accounts and reports we have considered up until this point have been financial reports, focused on profitability, capital, liquidity and associated financial measures. Financial reporting is long-established. More recent developments are sustainability reporting and integrated reporting (ie taking a holistic view of both financial and non-financial aspects of a company’s performance in reporting). 4.1 Sustainability reporting Description Most definitions of sustainability are based on the following definition used in the 1987 Brundtland Report by the UN: Sustainable development is development that meets the needs of the present, without compromising the ability of future generations to meet their own needs. This definition recognises the interdependence of economic, social and environmental factors, and the importance of intergenerational timescales. Sustainability reporting enables organisations to measure, understand and communicate the economic, social and environmental effects of their activities. A sustainability report also presents the organisation's goals, values and model of governance. A sustainability report can be produced:  as a non-financial report (other reports under this category would include corporate responsibility reports, environmental reports, social reports and strategic reports), or  as an intrinsic element of integrated reporting, a more recent development that combines the analysis of financial and non-financial performance. (See Section 4.2 for more details.) There is a wide variety of potential content for a sustainability report. Exactly which aspects are relevant varies between companies. Some examples of aspects that might be reported on are:  environmental eg energy supplies, water supplies, emissions, effluents and waste disposal  social eg workforce health and safety, workforce diversity, workforce training, product marketing and labelling, customer privacy  economic eg procurement policies, anti-corruption, anti-competitive behaviour. © IFE: 2019 Examinations The Actuarial Education Company CB1-15: Limitations of accounts and alternative reporting Page 11 Advantages and disadvantages of sustainability reporting Sustainability reporting is advocated because it:  compels organisations to recognise that actions taken now have implications for the future  helps organisations to consider and communicate their sustainability vision and strategy in the context of their overall goals  recognises the variety of stakeholders that are involved in the organisation and encourages businesses to consider the overall public interest in the decision-making process  demands greater transparency, which then enables and empowers businesses, governments, consumers and citizens to make informed decisions. The major contributor to the development of international standards is the Global Reporting Initiative (GRI), an international independent organisation, which provides the world’s most widely used standards on sustainability reporting. Its guidelines, first reported in 2000, are broken down into three categories  economic  social  environmental with various ‘aspects’ under each category. For example, under the environmental category, different aspects are related to emissions; water; and effluents and waste. Some companies have been producing sustainability reports for many years – in fact, according to the Global Reporting Initiative 2017, 92% of the world’s largest 250 corporations currently report on their sustainability performance. Companies do so because it:  enhances the company’s image and reputation  attracts and retains employees  encourages stakeholder involvement  creates competition within the industry. However, there are many potential problems of sustainability reporting, including:  The difficulties of measurement and projection, eg estimating the effect of water pollution and projecting these effects into the future.  There is a danger that companies report the good news and hide the bad. Such behaviour leads to a lack of credibility in the reports. Question Suggest ways in which the potential problem of companies reporting only good news may be addressed. The Actuarial Education Company © IFE: 2019 Examinations  Page 12 CB1-15: Limitations of accounts and alternative reporting Solution Possibilities include:  companies reporting comparisons with any external benchmarks or industry standards, not just their own internal performance measures  consistency over time in what information companies report  companies always including areas requiring improvement in their reports. The accountancy profession believes that, although sustainability reporting is challenging, it is a challenge that provides opportunities to develop the strengths of the profession in an important area. 4.2 Alternatives to traditional financial reporting There are two main alternatives: non-financial reporting and integrated reporting. Non-financial reporting developed first. Non-financial reports are supplementary to existing financial reports. Integrated reporting is a more recent development and aims to combine financial and non-financial aspects. Non-financial reporting Non-financial reports, such as sustainability reports, are sometimes required in addition to financial statements. There is an increasing trend for companies to produce such additional voluntary reports relating to matters of significant public interest. For example:  in the UK, companies are now required by law to publish a directors’ report and a strategic report  international accounting standards offer guidance on the preparation of a management discussion and analysis (MDA) report. Currently the UK strategic report requires companies to explain their strategic plans, business models and the main business risks they face, as well as provide information on policies and practices on prescribed matters, such as the environment and employment. Integrated reporting The aim of integrated reporting is to communicate a rounded picture of an organisation’s performance and prospects, so in an integrated report, the organisation needs to present not only its financial numbers but to place those numbers in a more holistic context. © IFE: 2019 Examinations The Actuarial Education Company CB1-15: Limitations of accounts and alternative reporting Page 13 As the name suggests, integrated reporting is not about financial reporting supplemented by non-financial reporting; it aims to produce a snapshot of the company that reflects how the company is affected by and manages the full range of influences on its performance and prospects. The report will therefore cover issues such as:  stakeholder relationships  quality of governance  use of natural resources  quality of risk management. In this holistic picture, the financials are still an important element but they are not the sole measure of performance. A holistic picture of a company is one that tries to capture the whole of a company’s impacts, both financial and non-financial rather than seeing it as a series of unconnected parts. As well as financial capital, a company’s integrated report will evaluate other areas too, eg human capital, social capital, intellectual capital. Performing well against non-financial measures may also help a company to ultimately improve its financial performance. Integrated reporting is being led by the International Integrated Reporting Council (IIRC). Its mission is to establish integrated reporting and thinking within mainstream business practice as the norm. The Actuarial Education Company © IFE: 2019 Examinations Page 14 CB1-15: Limitations of accounts and alternative reporting The chapter summary starts on the next page so that you can keep all the chapter summaries together for revision purposes. © IFE: 2019 Examinations The Actuarial Education Company CB1-15: Limitations of accounts and alternative reporting Page 15 Chapter 15 Summary Limitations of accounts Historical cost accounting  Time lag between purchase and sale means firms underestimate their cost of sales.  Depreciation charges calculated using historical cost tend to overstate profits.  For a company that pays more (less) interest than it receives, profits will be under (over)stated in times of high inflation.  Comparison between years is difficult because inflation will affect different figures in the accounts in different ways. Subjectivity  Inventories can be valued in a number of ways.  There is a wide choice of methods of calculating depreciation.  Some firms revalue their non-current assets periodically; others do not.  Intangible assets may or may not be included in a company’s accounts and their true value is difficult to determine. Appropriateness of the figures  Whether the assets are valued on a going-concern or a wind-up basis.  The amounts shown for trade receivables and payables are their face values, not their true present values.  Whether the assets should be shown at historical cost or at their long-term economic value to the company.  Some items in the accounts will be estimated.  Average values are more appropriate than end-year values for some purposes. Comparisons between firms  It is difficult to compare between firms when they use different calculation methods.  Creative accounting may be a problem with some firms.  Choice of accounting formats makes it difficult to compare companies’ accounts.  Different companies will show different levels of detail. The Actuarial Education Company © IFE: 2019 Examinations Page 16 CB1-15: Limitations of accounts and alternative reporting Ratio analysis  Diverts attention from the figures and statements themselves.  Comparisons can be affected by policies or other external factors.  May be peculiarities of the industry which make it difficult to interpret certain ratios.  Statements could have been deliberately distorted by creative accounting. Accuracy of figures  The figures in the accounts will be out of date by the time they are published.  Firms can delay or advance transactions to ‘window dress’ the accounts.  Accounts are often used for forecasting even though are an historical record. Manipulation Accounting practices that can lead to manipulation include:  inappropriate depreciation of tangible assets  inappropriate amortisation of intangible assets  inappropriate valuation of inventories  inappropriate valuation of future liabilities (including pension provisions)  unwarranted revaluation of tangible assets  creating intangible assets of questionable true worth  omitting contingent liabilities  ‘prebooking’ of anticipated sales revenues. Alternatives to financial reporting Sustainability reporting enables organisations to measure, understand and communicate the economic, social and environmental effects of their activities. A sustainability report also presents the organisation's goals, values and model of governance. It is advocated because it:  compels organisations to recognise that current actions have implications for the future`  helps organisations to communicate their sustainability vision and strategy  recognises the variety of stakeholders involved and encourages businesses to consider the overall public interest in the decision-making process  demands greater transparency, enabling informed decisions. Potential problems include difficulties of measurement and projection and that companies may report only good news and hide the bad. Non-financial reports, such as sustainability reports, are sometimes in addition to financial statements. An alternative approach is ‘integrated reporting’. © IFE: 2019 Examinations The Actuarial Education Company  CB1-15: Limitations of accounts and alternative reporting Page 17 Chapter 15 Practice Questions Exam style All of the questions that follow are exam style. 15.1 Which of the following is NOT a category in the Global Reporting Initiative (GRI) international standards on sustainability reporting? A economic B social C environmental D governance. 15.2 Explain the main weaknesses of historical cost accounts in times of high inflation. 15.3 Discuss the main limitations of ratio analysis. 15.4 Explain why the net asset value per share ratio and the current ratio might be misleading or meaningless as far as shareholders are concerned. 15.5 Explain why the profit margin ratio and the return on capital employed ratio might be misleading or meaningless as far as shareholders are concerned. The Actuarial Education Company © IFE: 2019 Examinations Page 18 CB1-15: Limitations of accounts and alternative reporting The solutions start on the next page so that you can separate the questions and solutions. © IFE: 2019 Examinations The Actuarial Education Company  CB1-15: Limitations of accounts and alternative reporting Page 19 Chapter 15 Solutions 15.1 Answer = D 15.2 The main weaknesses of historical cost accounts in times of high inflation are:  The cost of sales is underestimated and therefore profit is overstated.  If, for example, an item is purchased for £10 and sold for £15 the company will record a profit of £5. If, however, the cost of replacing that item of inventory has increased to £12 then the ‘real’ profit on the transaction is only £3.  If depreciation is calculated using the historical cost of the assets, the depreciation charge will be inadequate and thus again, profit will be overstated.  A company that pays out more interest than it receives will find that its profits will tend to be understated in times of high inflation because interest rates tend to be linked to the level of inflation.  Accounting figures are not comparable between years, so profits and asset values might increase in money terms but it is not clear how much of the increase is a real increase and how much is simply due to inflation. [Total 5] 15.3 The main limitations of ratio analysis are:  It diverts attention from the figures themselves. The scale of the figures is lost when looking at ratios and scale is important when analysing a company’s performance, eg a large company can benefit from economies of scale.  Ratio analysis also diverts attention from the notes to the accounts. It is important to look at information in the notes to the accounts and the Directors’ Report to gain a fuller view of the conditions in which the company is operating and its overall performance.  Ratios are calculated from the figures in the financial statements and can therefore be affected by the accounting policies used to calculate the basic accounting figures.  If, for example, two companies use different policies for depreciation or revaluation then any ratios based on their financial statements might not be comparable.  The financial statements on which the ratios are based could have been deliberately distorted by so-called creative accounting. Management could select accounting policies and assumptions that tend to bias the figures.  Ratios alone should not be to compare businesses, as for example companies might use different policies or be exposed to different market conditions.  When using ratios to make comparisons between businesses it is important to take into account any special conditions that occur in a particular trade. For example, stock turnover would be expected to be lower for an antique shop than a supermarket. [Maximum 5] The Actuarial Education Company © IFE: 2019 Examinations  Page 20 CB1-15: Limitations of accounts and alternative reporting 15.4 The net asset value per share ratio may be misleading or meaningless:  where values in the statement of financial position have not been revalued recently  if the assets contain a large proportion of worthless items (eg half-made widgets)  if the property market is in steep decline  if the assets are not marketable  where the value of the company is not related to the assets (eg ‘people’ businesses). The current ratio may be misleading or meaningless:  in isolation, eg it is hard to differentiate between the ‘efficient’ 0.8 from a stable company and the worrying 0.8 from a company with severe liquidity problems  because current assets and current liabilities can change rapidly over time, and the accounts only show a snapshot as at one particular date  because no indication is given of the company’s ability to borrow more if it needs to. [Maximum 5] 15.5 The profit margin ratio may be misleading or meaningless:  for banks or insurance companies where the idea of ‘profit’ is not clear cut.  for businesses with large contracts that spread over several years (eg construction). The ratio for return on capital employed may be misleading or meaningless:  where the capital employed is low (or not a major factor of production)  where profits are volatile (one year’s results should not be used)  where the entries in the statement of financial position do not produce a realistic value of the actual capital being used (eg when asset values are out of date, or capital has been raised during the year). [Total 5] © IFE: 2019 Examinations The Actuarial Education Company CB1-15: Limitations of accounts and alternative reporting Page 21 End of Part 2 What next? 1. Briefly review the key areas of Part 2 and/or re-read the summaries at the end of Chapters 9 to 15. 2. Ensure you have attempted some of the Practice Questions at the end of each chapter in Part 2. If you don’t have time to do them all, you could save the remainder for use as part of your revision. 3. Attempt Assignment X2. Time to consider … … ‘revision’ and ‘revision and rehearsal’ products Flashcards – These are available in both paper and eBook format. One student said: ‘The Flashcards were useful for highlighting what we needed to memorise and for revision on-the-go.’ Revision Notes – Each booklet covers one main theme of the course and includes integrated questions testing Core Reading, relevant past exam questions and other useful revision aids. One student said: ‘Revision books are the most useful ActEd resource.’ You can find lots more information, including samples, on our website at www.ActEd.co.uk. 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