briefs Inflated assets

Inflated assets

Quoted companies' balance sheets have been inflated by millions of pounds because of the Accounting Standards Board's instructions to treat assets and liabilities of Employee Share Ownership Plans as belonging to the sponsoring company. Similar amounts have been knocked off other companies' reserves because a permanent fall in the share price has reduced the value of their plans' assets, according to a report in the Esop Centre's monthly newslette

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