St James’s reveals IFRS assets impact

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.

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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.

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