Asset reclassification helps Schroders avoid £49.9m loss
IASB's accounting amendment helps investment bank smooth out loss on financial assets
Schroders has taken advantage of a recent IASB fair value amendment to
reclassify some of its assets, avoiding a hit of almost £50m to its quarterly
profits.
The standard setter relaxed the rules to allow companies to define assets as
‘available for sale’ as opposed to ‘held for trading’.
Instead of the £49.9m drop in the value of the assets hitting Schroders’
profit and loss statement, it will now appear on its balance sheet as unrealised
losses.
