Tesco says new accounting fashionable will now not have financial impact
LONDON (Reuters) – Tesco, Britain’s largest store, stated that a brand new accounting trendy related to the remedy of rentals would trade the manner property and liabilities are presented; however, it will now not have an economic effect on the institution.
It additionally stated the creation of the brand new IFRS sixteen preferred might haven’t any bearing on the plans or financial goals Tesco exact in October 2016.
The new fashionable seeks to align the presentation of leased belongings more intently to owned belongings.
Tesco said it does not affect how the commercial enterprise is run or on the group’s coin flows. But it does have a considerable impact on how the institution’s belongings, liabilities, and income assertion are offered—the class of cash flows regarding rent contracts.
The new general is powerful for all accounting durations starting on or after January 1, 2019. That approach Tesco’s first pronounced accounting duration underneath IFRS 16 can be its 2019-20 financial 12 months, which runs from February 24, 2019, to February 29, 2020.
It said its first-half 2018-19 results reported remaining October, restated for IFRS sixteen, maybe the comparative numbers for Tesco’s first published IFRS 16 accounts in October 2019.
Tesco is because of record its full-year 2018-18 results on April 10. These outcomes prepared on an IFRS sixteen basis may be posted shortly after.