FRC backs off RBS after accounting switch
Bank bows to pressure over treatment of Tesco Personal Finance
The Financial Reporting Review Panel has said that it has closed its enquiry into to accounts of the Royal Bank of Scotland.
The panel, part of the Financial Reporting Council, said it has been reviewing the past five years’ accounts of RBS in relation to its treatment of Tesco Personal Finance Group.
RBS had fully consolidated the company into its group accounts as a subsidiary, but the FRRP maintained that despite RBS owning the majority of the voting shares, the company should have been treated as a joint venture and use proportionate consolidation in future.
Following an announcement by RBS that accounting for TPFG would come under the gross equity method and proportionate consolidation, the panel has concluded its investigations.