Media companies suffer FRS17 swings
Media companies could see their earnings distorted by up to a fifth due to new accounting rules for pension funds.
Link: FRS17 special report
UBS Warburg warned that FRS17 could severely influence reported earnings following the publishing of a report on how 18 leading British media companies accounted for pensions under the new regime.
The report took 2003 forecast earnings figures for each company and applied various assumed pension deficit figures and found that the results varied wildly from those previously stated. Carlton for instance saw its adjusted earnings move from -12% to +10% while EMI’s earning were understated by 8%.