29th Nov 2016 07:59
LONDON (Alliance News) - Public transport operator Go-Ahead Group PLC on Tuesday said it has changed its accounting policy for rail pension schemes, resulting in higher statutory profit but no effect on cash flow.
Go-Ahead said its balance sheet currently recognises its share of pension surplus or deficit expected to be realised over the life of each rail franchise it takes on. Its current assessment is that no surplus or deficit has been be recognised and, therefore, no asset or liability is provided for.
However, the company said that in order to better reflect its limited responsibility for rail pensions, the long-term responsibility for which lies with the UK Department for Transport, Go-Ahead will revise its accounting policy and operating profit will now only recognise its agreed cost for rail pensions.
This has served to increase its statutory operating profit for its financial years from 2013 through to 2016 and the new policy will come into force for its interim results for the financial year to June 2017.
By Sam Unsted; [email protected]; @SamUAtAlliance
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