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Chief executive Brian Staples said: ‘In the light of developments this year in accounting best practice, most notably draft guidance from the Urgent Issues Task Force in respect of pre-contract costs, we have carefully reviewed the appropriateness of our accounting policies.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.’
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.