FRS 17 puts dent in BAA profits
Annual results put out by airport owner BAA revealed healthy profits of £616m, but were dented by a significant charge due to FRS 17.
Link: The great FRS 17 debate
The controversial pension accounting standard, combined with what BAA called ‘significant investment’ in its operation base, reduced profits by £54m for the year ending 31 March 2004.
Under FRS 17, pension assets and liabilities must be accounted for on the balance sheet.
The standard will become a mandatory in 2005, but many companies have already begun to phase it in.
BAA also announced that Tony Ball, the former chief executive of BSkyB, has been appointed as a non-executive director.
BAA will open Terminal 5 at Heathrow in 2008 increasing capacity at the UK’s biggest airport by 50%.