PracticeAuditIFRS to hit Northern Rock profits

IFRS to hit Northern Rock profits

Newcastle-based bank Northern Rock will face up to a 10% hit on profits when it adopts international financial reporting standards next year, according to new research.

Link: IFRS to wipe $4.7bn off Shell’s balance sheet

A report by Credit Suisse First Boston said that IFRS will force the company to amortise all origination fees, incentives and costs over the expected lifetime of a product, which could hit profits by up to £20m, while a change in how application fees are recorded could mean in initial hit on income of £30m.

CSFB downgraded its outlook on the company, which saw its shares fall 20p yesterday.

However, the same report said that the introduction of IFRS could benefit some banks, with HSBC and Alliance & Leicester set to see an increase in profits by as much as 10%.

Related Articles

Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

5d Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

1w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

1m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter
Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

Audit Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

3m Alia Shoaib, Reporter