Prudent treatment of VAT refund increases loss by 10%
UK pub company Mitchells & Butlers accounts for a £12 million VAT refund prudently and recognises a corresponding liability in the light of a guarantee to repay the amount if the tax authorities win an appeal and thus increases its pre-tax loss by 10%.
Irrecoverable element of potential future surplus increases pension deficit by 40%
UK pub company Mitchells & Butlers recognises an additional £56 million liability as part of a potential future pension surplus arising from additional contributions that will be irrecoverable.
