The company, which expected a profit, said it had deferred income of £2.2m in the year to 31 December 2001, with £14.9m in the previous year, as a direct result of a new ‘income recognition policy’ connected with PFI contracts.
Chief executive Brian Staples said: ‘In the light of developments this year in accounting best practice, most notably draft guidance from the Urgent Issues Task Force in respect of pre-contract costs, we have carefully reviewed the appropriateness of our accounting policies.
‘We have done so in recognition of the increasing involvement of the Group in large, complex, high value opportunities. Accordingly we are now fully expensing the significant pre-contract and similar in-contract costs, which are involved in securing our future workload.’
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