FRS5 amendment could erase broker annual profits
Accountant and business adviser Mazars has warned that the amendment to Financial Reporting Standard...
Accountant and business adviser Mazars has warned that the amendment to Financial Reporting Standard 5 could completely erase brokers' annual profits.
It has highlighted an interpretation of FRS5 that would mean brokers could not account for turnover not earned in the current financial year.
The amendment issued in November, gives general guidance on revenue recognition for the first time in UK Generally Accepted Accounting Principles. It asserts that turnover should only be recognised to the
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