St James's reveals IFRS assets impact
Operating profits up 43% at St James's place as assets prepare to fall under new standards.
St James’s Place, the financial services group, has revealed group net assets could be reduced by as much as £10m when it reports its results using international accounting standards.
The company said today (Tuesday) that despite the reduction in assets there would be no significant difference in reported statutory profits. Group operating profits up are up 43% to £82.2m.
St James said it estimates that IFRS2 will reduced future profitability of the group by £1.5m per annum.
IFRS will also produce ‘some significant presentational changes to both the revenue statements and balance sheet’, it said.
This is because a combination of standards will produce a deferral of costs and income resulting from new business.