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

The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

5d Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

6d Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2m Alia Shoaib, Reporter