Exclusion of salary costs from research and development expenditure conflicts with IFRS
UK pharmaceutical company Sinclair Pharma excludes salary costs from its research and development expenditure in treatment that conflicts with IFRS.

Presentation of a discontinued operation not fully in accordance with IFRS

UK pharmaceutical manufacturer ECO Animal Health (ECO) classifies an operation as discontinued but fails to present it in the income statement fully in accordance with the requirements under IFRS.

Items reducing post-tax profit by 17% net classified as exceptional

UK food manufacturer Thorntons classifies as exceptional several items, including pension curtailment gain and charge on withdrawal of Industrial Buildings Allowance, which together reduce post-tax profit by 17%.

Put options held by minority interests classified as financial liability

UK distribution company Diploma recognises as a financial liability measured at £11.8 million put options held by minority interests.

Capital redemption reserve used to pay up bonus shares

UK distribution company Diploma adjusts capital redemption reserve and retained earnings for the £4.6 million increase in share capital following a bonus issue.

Sensitivity analysis indicates 39.8% reduction to net assets

UK investment trust Lowland Investment Company states that a reasonably possible 40% reduction in the value of its investments would reduce net assets by 39.8%.