BAE Systems holds off on full IFRS restatement

BAE Systems will wait until the second quarter before releasing a reconciliation of its 2004 UK GAAP accounts with IFRS.

Link: The eigth annual FTSE350 audit fees survey

After announcing profits of £1.01bn before goodwill amortisation and interest, the group revealed a detailed analysis of how IFRS would impact on its financial accounts without going a step further and providing a full restatement of its 2004 figures.

According to BAE Systems, IFRS is going to affect several of its accounting policies.

The company is going to have to change the way it accounts for post retirement benefit schemes and alter its accounting for long term contracts. The group's derivative financial instruments are also going to have to be accounted for differently and it will be required to include how it handles guarantees on certain commercial aircraft in its consolidated accounts for the first time