FTSE100 takes £1bn share option hit
IFRS2 to reduce profits of top UK companies by £10m each
IFRS2 to reduce profits of top UK companies by £10m each
The requirement for companies to expense share options under international
financial reporting standards could hit profits at the UK’s top 100 listed
companies by more than £1bn.
Estimates by actuarial firm Lane Clarke & Peacock show that the average
hit to a FTSE100 company from the introduction of IFRS2 on share-based payments
would be about £10m.
The firm predicted that publishing companies Pearson and Reed Elsevier would
be hit hardest by the standard, with reported pre-tax profit being reduced by
12% and 8% respectively.
Lane Clark & Peacock warned that the hits could have been much larger if
they had been introduced during the share price boom, when share option awards
were much more commonplace, and if the International Accounting Standards Board
had decided not to value the options at the time of issue.
The numbers you crunch tell a story. Your expertis...
19yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe IESBA emphasizes the importance of timely and global adoption of their standards. For corporate accountants, this means staying updated with chang...
View articleKPMG's faces record fine for a widespread exam cheating scandal, implicating senior staff and highlighting systemic ethical issues in the professional...
View articlePwC's Australia tax scandal has led to significant changes, including over 300 job cuts and the refusal to share a crucial report with Australian parl...
View articleAccountants and accounting firms play a crucial role in maintaining financial integrity, facing ethical dilemmas and regulatory challenges. Adherence ...
View articleThe creation of an effective sustainability standards infrastructure requires not only high-quality sustainability reporting and assurance standards, ...
View articleChanges will help to make accounting profession more attractive, ICAEW boss says Read More...
View article38% of firms required significant improvements, prompting the council to state Tier 2 and Tier 3 firms must "prioritise audit quality improvements and...
View articleFaber has been outspoken about the EU's approach and reinforces the ISSB's approach of a climate transitioning on the "necessary scale" Read More...
View article