British Airways has seen its net assets fall by almost 50% because of new accounting rules.
The switch to International Financial Reporting Standards boosted profits to £556 million but net assets to the year ending March 31 fell from £2.68 billion to £1.4 billion. The drop was mainly due to the inclusion of its pension deficit, The Guardian reported.
According to the Financial Times, the airline is now unlikely to pay a dividend for the year ending next March.
“The impacts of new accounting rules on our income statement are minor. However there will be a significant impact on our balance sheet,” said chief financial officer John Rishton.
Report by Steve Jones
