41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 177
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
7.3. Our consideration of climate-related risks
We have made enquiries of management to understand the processes in place to assess the potential impact of climate
change on the business and the financial statements. Management consider climate change to be a principal risk which
particularly impacts the cost of retrofitting rental accommodation to improve their sustainability credentials and comply
with future regulations. These risks are consistent with those identified through our own risk assessment process.
As part of our identification of key audit matters, as detailed in section 5.1 above, we consider there to be a risk in relation
to climate change as part of the valuation of investment properties and investment properties under development.
There is a risk that the valuation does not include the relevant assumptions around climate change, principally, capital
expenditure required to bring the properties up to a certain environmental standard, to the extent assumed by a third
party when determining fair value.
We have reviewed the disclosures in the principal risk section of the Annual Report and consider that management has
appropriately disclosed the current risk that has been identified.
8. Other information
The other information comprises the information included in the Annual Report, other than the financial statements and
our auditor’s report thereon. The Directors are responsible for the other information contained within the Annual Report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise
explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to
be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether
this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as
the Directors determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and the Parent Company’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 the Directors either intend to liquidate the Group or the Parent Company or to cease
operations, or have no realistic alternative but to do so.
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