Under the new rules, which will replace a mixture of national standards currently governing most of Europe’s quoted companies, the mobile carrier said it will be able to increase net profit by 6.8bn pounds ($12.7bn) in its first half to September 30.
The figure will be boosted by a credit of 7.3bn pounds ($13.7bn) by the cessation of goodwill amortization, a 300m pound ($561.1m) reduction in non-recurring tax income, and a net charge of 200m pounds ($374.1m) in relation to other adjustments.
The main benefit is expected to be psychological because investors will no longer be looking at a 3.19bn pound ($5.9bn) loss under the old rules but a 3.9bn pounds ($7.3bn) profit under the new ones.
Finance director Ken Hydon said the most significant change is that the company will no longer amortize goodwill and this will result in a clearer presentation of underlying business performance.
