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New Accounting Standard Would Have Boosted Tesco's Profits, Retailer Says

Published on Apr 29 2019 10:20 AM in Retail tagged: Trending Posts / Tesco / Paywall / IFRS 16

New Accounting Standard Would Have Boosted Tesco's Profits, Retailer Says

The new IFRS 16 accounting standards would have boosted Tesco's full-year group operating profit by £401 million, had they been implemented to its 2018/19 results, the retailer said in a statement.

The IFRS 16 standard introduces a new accounting model for leases, and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value.

Tesco will be first implementing the IFRS 16 model to its 2019/20 interim results, due in October, however the retailer has adopted the standard retrospectively to its full year figures from last year, which were published at the start of April.

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