Financial Rep.Review

Review Panel Finding

RNS Number : 0304A
Financial Reporting Review Panel
01 October 2009
 



Financial Reporting Review Panel

Aldwych House, 71-91 Aldwych, London WC2B 4HN

Telephone: 020 7492 2300 Fax: 020 7492 2479

www.frc.org.uk/frrp 


FRRP PN 121                                                                              1 October 2009

PRESS NOTICE


FINDINGS OF THE FINANCIAL REPORTING REVIEW PANEL IN RESPECT OF THE ACCOUNTS OF BREWIN DOLPHIN HOLDINGS PLC FOR THE 52 WEEK PERIOD ENDED 30 SEPTEMBER 2007



The Financial Reporting Review Panel ('the Panel') has had under review the report and accounts of Brewin Dolphin Holdings PLC ('the company') for the 52 week period ended 30 September 2007.


The Panel's principal concern related to the company's practice of not separately recognising customer related intangible assets in the purchase of investment management businesses. IFRS 3 (2004) 'Business Combinations' requires an acquirer to recognise intangible assets separately if they meet the definition of an intangible asset in IAS 38 'Intangible Assets' and their fair value can be measured reliably.


In its Pre Closing Trading Update published today the company has announced that it will implement a change of accounting policy in the forthcoming financial statements of the company for the period ended 27 September 2009.  Intangible assets representing client relationships will now be recognised separately from goodwill. 


As a result, opening reserves at 1 October 2007 will be adjusted to reflect the accumulated amortisation that would have been recognised from the date of transition to IFRS of 25 September 2004 to 30 September 2007. Net assets at 1 October 2007 will be reduced by £2.2m to £113.1m. In the 2009 financial statements, the comparative figures for 2008 will be amended to include a total amortisation charge on intangible assets of £4.2m.


The Panel notes the actions announced by the directors today and, on the basis that the required changes are made in the company's preliminary results and full published accounts for the financial year to 27 September 2009 regards its enquiry, which commenced on the 16 July 2008, as concluded.


Notes to editors


 


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