This way of presenting amortisation

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Marek Muc
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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
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Re: This way of presenting amortisation

Post by Leo »

Seems like they distinguish depreciation with amortisation.
JRSB
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Re: This way of presenting amortisation

Post by JRSB »

not sure what that achieves since ebitda is already there etc.
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Marek Muc
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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
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Re: This way of presenting amortisation

Post by JRSB »

seems like it since the prior year is the same figure but includes exceptionals too
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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
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Marek Muc
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Re: This way of presenting amortisation

Post by Marek Muc »

Planning to make an offer? ;)
JRSB
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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.
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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.
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