Accounting hit for BPP Holdings
Group's assets fall by £5.2m as accounting policy changes.
Professional education provider BPP Holdings’ fixed assets and shareholders’ funds have both dipped by £5.2m because of the group’s adoption of new accounting standards for its employee stock option plans.
The new standard – UITF38 – changes the way the company reflects its own shares held in an ESOP trust. Shares used to be held as assets and will now be deducted to calculate shareholders’ funds. The company now has fixed assets valued at £94m. Shareholders’ funds total £40.3m.
BPP Holdings revealed the effects of the UITF38 at the announcement of its final results for the 2004 financial year. The group reported pre-tax profits of £8.2m, 8% down on the £8.9m reported for 2003.