BusinessCorporate FinanceEnterprise Inns departs from accounting rule

Enterprise Inns departs from accounting rule

Enterprise Inns, one of the biggest pub operators in the country, has revealed that it felt compelled to depart from the rule on accounting for subsidiaries in order to reach a true and fair view.

Link: Kroll to investigate at Regent Inns

The company’s interims, which today show operating profit up 37% to £402.7m, reveal Enterprise believed FRS2 would characterise its share of retained profits from Unique, an associated company, as goodwill.

Consequently, Enterprise has included £40.5m of retained profits and revaluation surplus within the total costs of acquisition for Unique when calculating goodwill.

The company, which operates more than 5,000 pubs across the country, notes this is a ‘departure from the statutory method’.

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