Concerns over FTSE 250 company's accounting policy
Brewin Dolphin told it failed to report intangible assets properly
Accountancy’s watchdog has accused a FTSE 250 company of failing to
adequately declare its intangible assets.
The Financial Reporting Review Panel has released a statement where it
expressed “concern” about the accounting policy of investment company Brewin
Dolphin Holdings PLC.
The FRRP said it was worried about the company’s practice of not separately
recognising customer related intangible assets in the purchase of investment
management businesses.
Quoting IFRS 3, the body said an acquirer needs to recognise intangible
assets separately if it wants to meet the definition of an intangible asset.
“In its pre closing trading update published today the company has announced
that it will implement a change of accounting policy in the forthcoming
financial statements of the company for the period ended 27 September 2009,” the
FRRP said.
“Intangible assets representing client relationships will now be recognised
separately from goodwill.”
Read the full FRRP statement:
FINDINGS
OF THE FINANCIAL REPORTING REVIEW PANEL IN RESPECT OF THE ACCOUNTS OF BREWIN
DOLPHIN HOLDINGS PLC FOR THE 52 WEEK PERIOD ENDED 30 SEPTEMBER 2007