PracticeAuditNew accounting standards trigger profit swings

New accounting standards trigger profit swings

A survey by investment bank UBS indicates that the profits at Europe's largest companies have swung by at least 12% under IFRS.

IFRS has caused profit swings of about 12% at Europe’s largest companies, according to research by investment bank UBS.

Link: Profits take off at Rolls-Royce under IFRS

The analysis quantifies the significant changes to the key indicators of corporate performance brought about by the new standards.

The survey of 27 companies that have restated their 2004 earnings showed that some have enjoyed a substantial boost to profits, while other have had their earnings cut, the The Financial Times reports.

According to the report, Britain’s Imperial Chemical Industries was the largest beneficiary, with a 93% increase in earnings to £474m, while Telecom Italia suffered the biggest hit to earnings, which fell 22%.

UBS excluded the impact of the scrapping of goodwill amortisation in its calculations, as the markets have always ignored this non-cash charge.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3d Emma Smith, Managing Editor
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

6d Emma Smith, Managing Editor
PwC to audit BBC pay policies following gender pay gap outrage

Accounting Firms PwC to audit BBC pay policies following gender pay gap outrage

3w Alia Shoaib, Reporter
PwC fined a record £5.1m by the FRC over RSM Tenon audit

Audit PwC fined a record £5.1m by the FRC over RSM Tenon audit

1m Alia Shoaib, Reporter
KPMG fined £4.8m over Miller Energy audit

Audit KPMG fined £4.8m over Miller Energy audit

1m Alia Shoaib, Reporter
PwC to take over from Deloitte as Diploma auditor

Accounting Firms PwC to take over from Deloitte as Diploma auditor

3w Alia Shoaib, Reporter
Deloitte rises in auditor rankings with most FTSE 250 clients

Accounting Firms Deloitte rises in auditor rankings with most FTSE 250 clients

3w Alia Shoaib, Reporter
Latest Big Four auditor changes

Audit Latest Big Four auditor changes

1m Alia Shoaib, Reporter