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This way of presenting amortisation
Posted: 07 Mar 2022, 10:22
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):
https://www.ashtead-group.com/files/dow ... s_2021.pdf
They don't explain why they do this
Re: This way of presenting amortisation
Posted: 09 Mar 2022, 11:55
by Leo
Seems like they distinguish depreciation with amortisation.
Re: This way of presenting amortisation
Posted: 10 Mar 2022, 20:25
by JRSB
not sure what that achieves since ebitda is already there etc.
Re: This way of presenting amortisation
Posted: 11 Mar 2022, 13:04
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
Re: This way of presenting amortisation
Posted: 12 Mar 2022, 15:06
by JRSB
seems like it since the prior year is the same figure but includes exceptionals too
Re: This way of presenting amortisation
Posted: 13 Mar 2022, 18:46
by JRSB
I just saw that Chelsea FC (not IFRS) do the same with the player intangibles amortisation in own column
Re: This way of presenting amortisation
Posted: 13 Mar 2022, 18:59
by Marek Muc
Planning to make an offer?
Re: This way of presenting amortisation
Posted: 14 Mar 2022, 15:05
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.
Re: This way of presenting amortisation
Posted: 30 Jun 2022, 01:30
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.