BusinessCompany NewsBAE shareholders agree to IFRS carve outs

BAE shareholders agree to IFRS carve outs

BAE Systems investors agree to scrap three international accounting standards from borrowing rules

BAE Systems’ shareholders have voted overwhelmingly in favour of amending their borrowing rules to strip out the effects of certain international accounting standards.

Link: BAE prepares to acquire US rival

In an EGM held earlier today, 99.35% of the votes supported BAE’s proposal to ignore the impacts of IAS19, IAS32 and IAS39 when determining whether the company has exceeded the borrowing threshold prescribed in article 104 of its articles of association.

Under IFRS, BAE’s shareholder funds fell from £4.7bn to £3.1bn, which would have hindered attempts to raise capital as the group’s previous articles of association only allowed loans equivalent to one-and-a-half times the company’s adjusted capital and reserves.

The result of today’s EGM has opened the way for BAE to go forward with its £2.1bn bid for US competitor United Defence Industries, which may have been cast into doubt had shareholders not approved the amendments to BAE’s borrowing rules.

Shareholders have also given their blessing for the UDI takeover, which has received the approval of regulatory authorities in the US, Sweden, Turkey, Germany and Norway.

The US justice department, however, is reviewing the transaction because of legislative requirments in the US.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor