WM Morrison Supermarkets PLC (LON:MRW) has adjusted its 2018 profits lower to reflect new accounting rules that change the way retailers can account for the costs of renting their premises.
The supermarket group will for the first time adopt IFRS 16 to prepare its results for the first half of the 2019 financial year.
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Under the accounting rules, which came into force for reporting periods after January, retailers have to include leasing obligations in annual statements of assets and liabilities. The aim is to improve the accuracy of accounts.
Ahead of its interims, Morrisons has restated its 2018 results to incorporate IFRS 16.
Pre-tax profit before exceptional was revised down £10mln to £396mln due £103mln less in rent, an extra £58mln in depreciation and a further £55mln in finance costs that weren't reported previously.
Net assets were adjusted down by £304mln to £4.3bn after recognising lease liabilities of £1.4bn and corresponding right-of-use assets of £745mln.
Operating profit before exceptionals was revised up £45mln to £510mln and the operating margin was raised 25 basis points to 2.9%.