Provident Financial profits lower under IFRS
New accounting rules would have reduced doorstep lender's profits by £10m.
Profits at Provident Financial, the doorstep lender, would have been five per cent lower last year had it issued its results under new International Financial Reporting Standards.
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Unveiling pre-tax profits of £216 million, the financial services group said the new rules would have knocked more than £10 million off its profit and loss account.
The new rules would have affected the timing of the group’s revenue recognition and its bad debt provisioning, it said, meaning that one of its subsidiaries, Yes Car Credit, would have seen a profit of £4.4 million under UK GAAP rules turn into a £2.7 million loss.