Gaining at employees’ expense as Christmas bonus scheme cancelled

UK engineering group Smiths recognises in the income statement past service and curtailment gains, to which it owes 19.1% of its current year profit, following reductions in its employees’ pension and post-retirement healthcare entitlements in the US and USA.

Losses on investment in an associate reduce profit by 57%
UK packaging company DS Smith recognises £22.6 million losses on its investment in an associate arising from currency impacts that reduce its pre-tax profit by 57%.