This way of presenting amortisation

Topics related to local GAAP, audit, laws and regulations affecting financial reporting, non-GAAP measures, investor relations, internal control over financial reporting, XBRL, pro-forma information and other similar topics.
Post Reply
User avatar
Marek Muc
Site Admin
Posts: 2129
Joined: 15 Oct 2018, 17:21
Location: Warsaw, Poland
Contact:

This way of presenting amortisation

Post by Marek Muc »

I was stunned when I saw this - amortisation of intangible assets is presented as a separate column on the face of P&L (Ashtead Group, a FTSE 100 company):
Asthead.PNG
https://www.ashtead-group.com/files/dow ... s_2021.pdf

They don't explain why they do this
Leo
Posts: 546
Joined: 05 Apr 2020, 22:31

Re: This way of presenting amortisation

Post by Leo »

Seems like they distinguish depreciation with amortisation.
JRSB
Trusted Expert
Posts: 868
Joined: 01 Mar 2020, 01:10
Location: UK

Re: This way of presenting amortisation

Post by JRSB »

not sure what that achieves since ebitda is already there etc.
User avatar
Marek Muc
Site Admin
Posts: 2129
Joined: 15 Oct 2018, 17:21
Location: Warsaw, Poland
Contact:

Re: This way of presenting amortisation

Post by Marek Muc »

my bet is that they recognised some intangible assets through business combination accounting (e.g. customer relationships) and the management doesn't like the amortisation charge that comes with it
JRSB
Trusted Expert
Posts: 868
Joined: 01 Mar 2020, 01:10
Location: UK

Re: This way of presenting amortisation

Post by JRSB »

seems like it since the prior year is the same figure but includes exceptionals too
JRSB
Trusted Expert
Posts: 868
Joined: 01 Mar 2020, 01:10
Location: UK

Re: This way of presenting amortisation

Post by JRSB »

I just saw that Chelsea FC (not IFRS) do the same with the player intangibles amortisation in own column
User avatar
Marek Muc
Site Admin
Posts: 2129
Joined: 15 Oct 2018, 17:21
Location: Warsaw, Poland
Contact:

Re: This way of presenting amortisation

Post by Marek Muc »

Planning to make an offer? ;)
JRSB
Trusted Expert
Posts: 868
Joined: 01 Mar 2020, 01:10
Location: UK

Re: This way of presenting amortisation

Post by JRSB »

bit out of my range, although other clubs in debt are known to have been sold for £1 so those might be in reach, albeit you're actually buying a multi million pound black hole.
pub_acco
Trusted Expert
Posts: 309
Joined: 19 Mar 2020, 16:40

Re: This way of presenting amortisation

Post by pub_acco »

Just learned this way of presentation was about to be banned.

https://www.ifrs.org/news-and-events/up ... ne-2022/#4
to withdraw the proposal to specifically prohibit the use of columns for presenting management performance measures in the statement(s) of financial performance. Nine of 10 IASB members agreed with this decision.
Post Reply