Save content
Have you found this content useful? Use the button above to save it to your profile.
AIA

FRC exposes WH Smith accounting error

by
15th Oct 2013
Save content
Have you found this content useful? Use the button above to save it to your profile.

The Financial Reporting Council (FRC) has announced the findings of a review into WH Smith’s accounts, revealing that it did not correctly recognise some of its pension scheme contributions.

The Financial Reporting Review Panel (FRRP) of the FRC’s Conduct Committee reviewed the annual report and accounts of WH Smith for the year ended 31 August 2012.

The principal issue arising from that review related to the retailer’s decision not to recognise as a liability in its accounts a schedule of contributions prepared under section 227 of the Pension Act 2004 between a subsidiary of the company and the company’s pension trustee.

According to the review it did not view the schedule of contributions as a minimum funding requirement to be accounted for in accordance with IFRIC 14 IAS 19 – the Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction.

WH Smith has accepted that the schedule of contributions is a minimum funding requirement within the meaning of IFRIC 14 and should have been accounted for as a liability in its accounts for the year ended 31 August 2012.

As a result it has re-stated the comparative amounts to the results reported in its 2013 preliminary announcement, published last week, showing the total group profit before tax up 6% to £108m.

Profit after tax for the year ended 31 August 2012 has now been reduced by £4m.

Following the corrective action the conduct committee said its investigation is now closed.

Tags:

Replies (1)

Please login or register to join the discussion.

By itp3asso
18th Oct 2013 16:03

lagopav
could i have chips and two "wallies " with mine please ?

Thanks (0)