RE: This mornings RNS16 Jul 2019 10:58
The Coy should have taken account of pending changes included in IFRS15 but didn’t. The changes became mandatory in Jan 19. The CFO had not taken the necessary steps so the Auditor would not accept the figures – so she stepped down.
In olden days accountants were conservative –write down value of stock but not write up est asset value increase. Exception – land and buildings where increase in value posted to revaluation reserve – not retined profit because the increased value had not been realised – i.e. sold.
2019 – transparency – and the Board currently estimates this to be in the order of approximately £1.1 million reduction in EBITDA and corresponding increase to balance sheet reserves and £8.1 million reduction in turnover and cost of sales.
So + and - , - and plus and
As stated above, there is no change to the Group's underlying performance or cash resources