Imperial Tobacco takes £140m IFRS hit
Accounting revisions relating to FTSE 100 company's acquisitions take chunk out of the company's profits
Robert Dyrbus, Imperial Tobacco finance director
Imperial Tobacco has suffered a write-down of £140m after IFRS accounting
demands hit home.
Imperial
Tobacco said: ‘There will be a number of one-off acquisition accounting
adjustments required by IFRS which will affect adjusted profit from operations.’
The FTSE 100 company blamed changes in the fair value of stocks and the
elimination of inter-company sales-which must be addressed under the reporting
standards-for the impairments. The company said that adjustments relating to
depreciation, assets held for sale, derivatives and intangible assets also had
an effect.
The company will now take a £110m hit in the first half of the year and £30m
in the second half of 2008.
‘The adjustments will have no effect on the underlying business performance
or cash flows of the Group,’ Imperial Tobacco added.
Further reading:
Dyrbus
rakes in £2.4m at Imperial Tobacco