BusinessCompany NewsBP to use profits to plug FRS 17 hole

BP to use profits to plug FRS 17 hole

Energy giant BP has revealed a massive £1.35bn pensions deficit, calculated under controversial accounting rule FRS 17, as it posted a 42% rise in quarterly profits.

Link: FRS 17 special area

Strong oil prices will help the company to pay this off, allowing it to reduce its deficit quicker than most companies.

BP said reducing the pension liability would be the priority of its free cash flow for the rest of the year.

The announcement follows warnings from the CBI this week that an estimated £160bn UK-wide corporate pensions deficit will hit economic growth as companies use profits to pay liabilities.

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