NEW RULES COULD HIT BROKERS’ FIGURES

Insurance brokers in England fear that their profitability could be affected by an alteration in accountancy regulations. Companies can no longer immediately recognise all of the revenue from a contract in their annual accounts if that contract requires servicing beyond that period of account. The interpretation by the Institute of Chartered Accountants in England and Wales of Financial Reporting Standard 5 on revenue recognition affects all companies whose financial year-end was after December 23, 2003.