The new rules will require Barclays to account for its assets and liabilities using fair value and bring some conduit vehicles on balance sheet, which are currently off balance sheet.
In a statement on Tuesday the UK’s third largest bank said: ‘It is expected that the change to IFRS will have a minimal overall impact on both profit before tax and earnings per share.’
Cathy Turner, head of investor relations, told Accountancy Age that under IFRS profit before tax would be reduced by £125m. Barclays profit before tax for 2003 was £3.85bn.
Barclays is the first of the UK’s commercial banks to outline its approach to IFRS and the impact the new rules will have on its business. The bank said there would be ‘no change’ to the economics of the business or risk and that its capital position remains strong.
It will publish its first set of half year results under IFRS in August 2005. An IFRS transistion document including some figures will be published in spring next year.
The bank said it would apply in full IAS39, the controversial rule on accounting for financial instruments, rather than the EU carve out.
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.