Accounting

Tesco says new accounting fashionable will now not have financial impact

LONDON (Reuters) – Tesco, Britain’s largest store, stated on Friday a brand new accounting trendy related to the remedy of rentals, will trade the manner property and liabilities are presented however will now not have an financial effect at 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 has no effect on how the commercial enterprise is run, nor on coins flows for the group.

But it does have a considerable impact on the way the belongings, liabilities and the income assertion of the institution are offered, as well as the class of cash flows regarding rent contracts.

The new general is powerful for all accounting durations starting on or after Jan. 1 2019.

That approach Tesco’s first pronounced accounting duration underneath IFRS 16 can be its 2019-20 financial 12 months, which runs from Feb. 24, 2019, to Feb. 29 2020.

It said its first half 2018-19 results reported remaining October, restated for IFRS sixteen, may be 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.

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