IFRS proves a winner for Stanley Leisure

UK gambling operator Stanley Leisure notes that the recorded gain on a major business disposal will be higher under International Financial Reporting Standards.

Stanley states that, while the approximate profit on sale of its retail betting operations under UK GAAP is £210m, this increases to £330m under IFRS.

The difference arises from the separate recognition of licences as intangible assets under IFRS and their valuation at cost, whereas under UK GAAP they are valued with the properties to which they apply using a revaluation model. As the carrying value of the assets sold reduces, so the gain recognised on disposal is increased.

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