Yet last week international airport group BAA reported an operating profit of Pounds 355m under the new controversial accounting standard.
BAA is one of the few companies that has opted for early adoption of the new accounting rule, which takes effect in stages until 2003.
Admittedly that same result would have been some Pounds 19m higher pre-FRS 17. But that’s hardly the volatility we were warned about. And that came in a depressed market.
But is there anything wrong with the fundamental principle of using market valuations? Who knows, perhaps we will hear fewer warnings of ‘volatility’ once the stock market recovers.
Mark McMullen joins the private client services team from Smith & Williamson
Merger between Clear & Lane Chartered Accountants and Magma Chartered Accountants was finalised on 3 February
BDO has taken its new partner intake to 23 during the first half of its financial year, including the appointment of five partners in five weeks
The firm reports 7.6% global fee income growth for the year ending 31 December 2016