FRS17 costs Diageo £88m
Drinks group Diageo has revealed that its adoption of new pension standard FRS17 has made an £88m hole in its operating profit.
Link: FRS17 special report
In a pre-closed period statement, the group, which owns world famous brands such as Guinness, Smirnoff, Johnnie Walker and Baileys, said that the losses attributed to FRS17 would be partially offset by a decrease in exceptional charges and increases in other finance income.
The standard, which Diageo adopted in its primary financial statements from 1 July 2003, also resulted in the reduction of shareholder funds by £1.865bn.