Inappropriate recognition of goodwill UK financial broking company ICAP inappropriately increases goodwill by £12 million corresponding to deferred tax liabilities on revaluing its previous interest in a company that it acquired in full this year.
Loss from discontinued operations reduces profit by approximately 30% UK financial broking company ICAP reports a £48 million loss from its discontinued European and Asia Pacific cash equities business which reduces profit for the year by some 30%.
Vehicle company used to create distributable reserves on a share issue UK retailer J Sainsbury uses a vehicle company in a share issue and applies merger relief under the Companies Act 2006 to create £102 million distributable reserves, bypassing its requirement for application of share premium to a non-distributable reserve.
Impairments reduce profit by 5.8% UK metal products company Johnson Matthey records £14 million impairments, most of which relate to a US fine chemicals facility, that reduce pre-tax profit by 5.8%.
Earnings per share hurdle eliminated from long-term incentive plans UK property company British Land changes focus from eps to like-for-like rental growth as a performance measure for directors’ schemes.
Life expectancy assumptions reduced following change of tables used London Stock Exchange changes the tables used for mortality assumptions resulting in lower life expectancies.
Third party concerns revealed, as pensions deficit drives company into negative equity UK telecoms company BT’s pensions deficit before deferred tax has increased to £7.9 billion in the year, as the company publishes additional detail on the calculation of liabilities and notes the “substantial” concerns of the Pensions Regulator as it moves into a £2.6 billion net liabilities position.
Non-executives included in key management personnel in correction of error UK telecoms company BT restates its accounts to include its Chairman and non-executive directors in its disclosures on key management personnel, increasing comparative salaries and short-term benefits of these personnel by £1.6 million, or 23.5%, to £8.4 million.
Explanation for balance sheet restatements not compelling UK retailer Tesco attributes derecognition of prior year £588 million financial assets and liabilities to a change in policy arising from “emerging industry practice” but we consider it involves an accounting error.