The City saw the results of these accounting changes yesterday, as Boots announced its interim results. It reported a 2.8% drop in profits and said it would not be selling its Pure Beauty market stores.
Chartered accountant Howard Dodd, who has been finance director since April, has re-vamped the finance department.
Since his appointment, he has changed the way the company calculates like-for-like sales, introduced a segmental breakdown of the business and changed the policies on hedging rent commitments.
Plans to adopt controversial accounting standard FRS 17 were also abandoned and the company is sticking to the old SSAP24 standard to calculate pensions.
Dodd told the Financial Times the changes would have little impact on bottom line figures but they would make the company’s figures easier to understand. Changes to hedging rent commitments did, however, lead to a £100m exceptional credit on the interest line.
Chairman John McGrath said it was normal to have accounting changes under a new finance director and admitted the way finances were reported in the past was not clear.
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