Revenue recognition change for Signet
Signet, the owner of US jewellery chains Kay Jewellers and Jared, has announced a change in the way it books sales, after revisions to UK accounting rules.
Link: ASB to issue guidance on revenue recognition
The British Jewellers reported in its interim results that it now spreads revenue from sales over the anticipated period of claims, instead of booking revenue at the date of sale. As a result, the group has restated previous years’ results to reflect the change.
The previously-reported profit before tax for the year ended 31 January 2004 incurred a non cash reduction of £7.2m to £204.7m. For the 13 and 39 weeks ended 1 November 2003, profit before tax increased by £2.6m and £2.2m respectively.
The effect on reserves is a reduction of £35.1m net of deferred tax, with shareholders’ funds at 31 January 2004 restated to £692.5m.
For the 13 weeks to 30 October, the jeweller reported pre-tax profits of £8.4m, up 9%, with group sales reaching £292.1m.
Terry Burman, group chief executive, said: ‘We are pleased with the group’s performance for the first nine months of the year. Further progress was made in the third quarter against the background of challenging trading conditions.’